Primedic-Providing Primary Care in Mexico SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Primedic-Providing Primary Care in Mexico
Primedic is a Mexican start-up that aims to deliver affordable primary and preventative healthcare to those at the base of the economic pyramid. The company is about to exhaust its first round of venture capital funding, and the business model has yet to gain traction. How should the business model be changedm and should the venture capitalists continue to fund the company?
Authors :: Richard G. Hamermesh, Regina Garcia Cuellar, Lauren Margulies
Swot Analysis of "Primedic-Providing Primary Care in Mexico" written by Richard G. Hamermesh, Regina Garcia Cuellar, Lauren Margulies includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Primedic Changedm facing as an external strategic factors. Some of the topics covered in Primedic-Providing Primary Care in Mexico case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Primedic-Providing Primary Care in Mexico casestudy better are - – increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , increasing commodity prices, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, increasing energy prices,
there is backlash against globalization, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Primedic-Providing Primary Care in Mexico
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Primedic-Providing Primary Care in Mexico case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Primedic Changedm, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Primedic Changedm 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 Primedic-Providing Primary Care in Mexico can be done for the following purposes –
1. Strategic planning using facts provided in Primedic-Providing Primary Care in Mexico case study
2. Improving business portfolio management of Primedic Changedm
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 Primedic Changedm
Strengths Primedic-Providing Primary Care in Mexico | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Primedic Changedm in Primedic-Providing Primary Care in Mexico Harvard Business Review case study are -
Learning organization
- Primedic Changedm 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 Primedic Changedm is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Primedic-Providing Primary Care in Mexico Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Primedic Changedm has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Primedic Changedm to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Primedic Changedm has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Primedic Changedm 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.
Strong track record of project management
– Primedic Changedm is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Primedic Changedm 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.
Ability to recruit top talent
– Primedic Changedm is one of the leading recruiters in the industry. Managers in the Primedic-Providing Primary Care in Mexico are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Primedic Changedm digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Primedic Changedm 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.
Sustainable margins compare to other players in Global Business industry
– Primedic-Providing Primary Care in Mexico firm has clearly differentiated products in the market place. This has enabled Primedic Changedm to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Primedic Changedm to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Primedic Changedm in the sector have low bargaining power. Primedic-Providing Primary Care in Mexico has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Primedic Changedm to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Primedic Changedm 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 Primedic-Providing Primary Care in Mexico - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Primedic Changedm is present in almost all the verticals within the industry. This has provided firm in Primedic-Providing Primary Care in Mexico 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.
Innovation driven organization
– Primedic Changedm is one of the most innovative firm in sector. Manager in Primedic-Providing Primary Care in Mexico Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Primedic-Providing Primary Care in Mexico | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Primedic-Providing Primary Care in Mexico are -
High bargaining power of channel partners
– Because of the regulatory requirements, Richard G. Hamermesh, Regina Garcia Cuellar, Lauren Margulies suggests that, Primedic Changedm 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.
Aligning sales with marketing
– It come across in the case study Primedic-Providing Primary Care in Mexico 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 Primedic-Providing Primary Care in Mexico can leverage the sales team experience to cultivate customer relationships as Primedic Changedm is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Primedic Changedm needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Interest costs
– Compare to the competition, Primedic Changedm 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.
Skills based hiring
– The stress on hiring functional specialists at Primedic Changedm 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Primedic Changedm is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Primedic-Providing Primary Care in Mexico can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Primedic-Providing Primary Care in Mexico HBR case study mentions - Primedic Changedm takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
No frontier risks strategy
– After analyzing the HBR case study Primedic-Providing Primary Care in Mexico, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Lack of clear differentiation of Primedic Changedm products
– To increase the profitability and margins on the products, Primedic Changedm needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Primedic Changedm 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Primedic-Providing Primary Care in Mexico, is just above the industry average. Primedic Changedm 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.
Opportunities Primedic-Providing Primary Care in Mexico | 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 Primedic-Providing Primary Care in Mexico are -
Developing new processes and practices
– Primedic Changedm can develop new processes and procedures in Global Business 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Primedic Changedm in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
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 Primedic Changedm in the consumer business. Now Primedic Changedm can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Primedic Changedm has opened avenues for new revenue streams for the organization in the industry. This can help Primedic Changedm to build a more holistic ecosystem as suggested in the Primedic-Providing Primary Care in Mexico case study. Primedic Changedm can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Primedic Changedm 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, Primedic-Providing Primary Care in Mexico, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Primedic Changedm 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Primedic Changedm is facing challenges because of the dominance of functional experts in the organization. Primedic-Providing Primary Care in Mexico 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.
Better consumer reach
– The expansion of the 5G network will help Primedic Changedm to increase its market reach. Primedic Changedm 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.
Manufacturing automation
– Primedic Changedm 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Primedic Changedm can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Primedic Changedm 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 Primedic-Providing Primary Care in Mexico - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Primedic Changedm to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Primedic Changedm 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.
Loyalty marketing
– Primedic Changedm 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.
Threats Primedic-Providing Primary Care in Mexico External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Primedic-Providing Primary Care in Mexico are -
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 Primedic Changedm in the Global Business sector and impact the bottomline of the organization.
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. Primedic Changedm can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Primedic Changedm
– 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 Primedic Changedm.
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 Primedic Changedm business can come under increasing regulations regarding data privacy, data security, etc.
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. Primedic Changedm 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.
Shortening product life cycle
– it is one of the major threat that Primedic Changedm is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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 Primedic-Providing Primary Care in Mexico, Primedic Changedm may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Primedic Changedm with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Primedic Changedm.
Technology acceleration in Forth Industrial Revolution
– Primedic Changedm has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Primedic Changedm 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
Stagnating economy with rate increase
– Primedic Changedm 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.
Weighted SWOT Analysis of Primedic-Providing Primary Care in Mexico 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 Primedic-Providing Primary Care in Mexico 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 Primedic-Providing Primary Care in Mexico 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 Primedic-Providing Primary Care in Mexico 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 Primedic-Providing Primary Care in Mexico 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 Primedic Changedm needs to make to build a sustainable competitive advantage.
