Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears
Set in early October 2017, this case follows Utz Claassen, the founder and chairman of Syntellix - a medical parts company that specialised in the research, development and sales of bio-absorbable, metallic implants. Syntellix was founded in 2008 as a spin-off from the special research division at the University of Hanover in Germany with the intention of translating the institute's theoretical knowledge of magnesium-based biodegradable implants into viable medical applications. After the successful completion of animal testing in 2010, the company began human clinical studies of its patented MAGNEZIX? alloy used in compression screws, pins and plates for the treatment of bone fractures, which had traditionally relied on steel and titanium parts. After more than five years of meticulous hard work, by 2017 MAGNEZIX? medical screws and pins have met CE-approval for human use in 30 countries. The product officially launched in Germany in September 2013. And by the end of 2016, about 25,000 successful implants had taken place across Europe, Asia, Africa and the Middle East. In March 2017, Syntellix AG founded Syntellix Asia based in Singapore, where it received venture financing and government support to make inroads into the booming Asian healthcare sector. Despite such success, the biggest operational difficulty Syntellix has is to continue making its way in a market dominated by gigantic players with huge resources, infrastructure and relationship network.
Authors :: Adam Tatarynowicz, Havovi Joshi, Christopher Dula
Swot Analysis of "Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears" written by Adam Tatarynowicz, Havovi Joshi, Christopher Dula includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Syntellix Implants facing as an external strategic factors. Some of the topics covered in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears case study are - Strategic Management Strategies, Disruptive innovation, Entrepreneurship and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears casestudy better are - – increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, supply chains are disrupted by pandemic , geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing transportation and logistics costs, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Syntellix Implants, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Syntellix Implants operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears can be done for the following purposes –
1. Strategic planning using facts provided in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears case study
2. Improving business portfolio management of Syntellix Implants
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Syntellix Implants
Strengths Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Syntellix Implants in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears Harvard Business Review case study are -
Learning organization
- Syntellix Implants is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Syntellix Implants is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Syntellix Implants is one of the leading recruiters in the industry. Managers in the Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Syntellix Implants is one of the most innovative firm in sector. Manager in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Syntellix Implants digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Syntellix Implants has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Successful track record of launching new products
– Syntellix Implants has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Syntellix Implants has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Organizational Resilience of Syntellix Implants
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Syntellix Implants does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Syntellix Implants has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Syntellix Implants has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Syntellix Implants to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Syntellix Implants in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Syntellix Implants in the sector have low bargaining power. Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Syntellix Implants to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Syntellix Implants is present in almost all the verticals within the industry. This has provided firm in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Training and development
– Syntellix Implants has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears, is just above the industry average. Syntellix Implants needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Aligning sales with marketing
– It come across in the case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears can leverage the sales team experience to cultivate customer relationships as Syntellix Implants is planning to shift buying processes online.
Interest costs
– Compare to the competition, Syntellix Implants has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Need for greater diversity
– Syntellix Implants has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High cash cycle compare to competitors
Syntellix Implants has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High bargaining power of channel partners
– Because of the regulatory requirements, Adam Tatarynowicz, Havovi Joshi, Christopher Dula suggests that, Syntellix Implants is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears, it seems that the employees of Syntellix Implants don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, Syntellix Implants has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow decision making process
– As mentioned earlier in the report, Syntellix Implants has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Syntellix Implants even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Skills based hiring
– The stress on hiring functional specialists at Syntellix Implants has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Syntellix Implants can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Syntellix Implants in the consumer business. Now Syntellix Implants can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Syntellix Implants can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Syntellix Implants has opened avenues for new revenue streams for the organization in the industry. This can help Syntellix Implants to build a more holistic ecosystem as suggested in the Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears case study. Syntellix Implants can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Syntellix Implants is facing challenges because of the dominance of functional experts in the organization. Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Syntellix Implants to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Syntellix Implants to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Syntellix Implants can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Using analytics as competitive advantage
– Syntellix Implants has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Syntellix Implants to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Syntellix Implants can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Syntellix Implants can use these opportunities to build new business models that can help the communities that Syntellix Implants operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Developing new processes and practices
– Syntellix Implants can develop new processes and procedures in Innovation & Entrepreneurship industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Leveraging digital technologies
– Syntellix Implants can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Syntellix Implants can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Syntellix Implants can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Threats Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Syntellix Implants with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Syntellix Implants in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Environmental challenges
– Syntellix Implants needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Syntellix Implants can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Increasing wage structure of Syntellix Implants
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Syntellix Implants.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Syntellix Implants.
Consumer confidence and its impact on Syntellix Implants demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Syntellix Implants will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Syntellix Implants needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Syntellix Implants has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Syntellix Implants needs to keep up with the evolution of technology in the Innovation & Entrepreneurship sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Syntellix Implants business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears, Syntellix Implants may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
High dependence on third party suppliers
– Syntellix Implants high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Weighted SWOT Analysis of Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Syntellix Implants needs to make to build a sustainable competitive advantage.