U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010
Supplement to "U.S. Healthcare Reform: International Perspectives," HBS No. 710-040, updating key events and disputes concerning the reform law, including the 2010 Congressional elections, legislative proposals, legal challenges, and responses by employers.
Swot Analysis of "U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010" written by Arthur A. Daemmrich includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Reform 040 facing as an external strategic factors. Some of the topics covered in U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 casestudy better are - – challanges to central banks by blockchain based private currencies, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions,
central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Reform 040, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Reform 040 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 U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 can be done for the following purposes –
1. Strategic planning using facts provided in U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 case study
2. Improving business portfolio management of Reform 040
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Reform 040
Strengths U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Reform 040 in U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 Harvard Business Review case study are -
Analytics focus
– Reform 040 is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Arthur A. Daemmrich can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High brand equity
– Reform 040 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Reform 040 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Reform 040 are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Low bargaining power of suppliers
– Suppliers of Reform 040 in the sector have low bargaining power. U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Reform 040 to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Reform 040 is one of the leading recruiters in the industry. Managers in the U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Global Business field
– Reform 040 is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Reform 040 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Reform 040 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 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.
Innovation driven organization
– Reform 040 is one of the most innovative firm in sector. Manager in U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Global Business industry
– U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 firm has clearly differentiated products in the market place. This has enabled Reform 040 to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Reform 040 to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Reform 040 has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Effective Research and Development (R&D)
– Reform 040 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 U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Reform 040 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Reform 040 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.
Weaknesses U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 are -
Skills based hiring
– The stress on hiring functional specialists at Reform 040 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.
Lack of clear differentiation of Reform 040 products
– To increase the profitability and margins on the products, Reform 040 needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Reform 040, firm in the HBR case study U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010, it seems that the employees of Reform 040 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Reform 040 has relatively successful track record of launching new products.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Reform 040 supply chain. Even after few cautionary changes mentioned in the HBR case study - U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Reform 040 vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 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 U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 can leverage the sales team experience to cultivate customer relationships as Reform 040 is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010, is just above the industry average. Reform 040 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.
Products dominated business model
– Even though Reform 040 has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Reform 040 is dominated by functional specialists. It is not different from other players in the Global Business segment. Reform 040 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Reform 040 to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Reform 040 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. Reform 040 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.
Opportunities U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 | 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 U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Reform 040 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. Reform 040 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.
Manufacturing automation
– Reform 040 can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Reform 040 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Reform 040 is facing challenges because of the dominance of functional experts in the organization. U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 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 Reform 040 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 Reform 040 to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Reform 040 to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Low interest rates
– Even though inflation is raising its head in most developed economies, Reform 040 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.
Better consumer reach
– The expansion of the 5G network will help Reform 040 to increase its market reach. Reform 040 will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
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 Reform 040 in the consumer business. Now Reform 040 can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Reform 040 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, U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Reform 040 can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Loyalty marketing
– Reform 040 has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Reform 040 can use these opportunities to build new business models that can help the communities that Reform 040 operates in. Secondly it can use opportunities from government spending in Global Business sector.
Threats U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 are -
High dependence on third party suppliers
– Reform 040 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.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Reform 040 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Reform 040 in the Global Business sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Reform 040 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 Reform 040 in the Global Business industry. The Global Business 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.
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. Reform 040 needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Reform 040 has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Reform 040 needs to keep up with the evolution of technology in the Global Business 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 Reform 040 business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Reform 040 is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Reform 040 can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 .
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. Reform 040 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.
Stagnating economy with rate increase
– Reform 040 can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Regulatory challenges
– Reform 040 needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.
Weighted SWOT Analysis of U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 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 U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 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 U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 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 U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 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 U.S. Healthcare Reform: Reaction to the Patient Protection and Affordable Care Act of 2010 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 Reform 040 needs to make to build a sustainable competitive advantage.
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