Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A)
To maximize their effectiveness, color cases should be printed in color.Describes the mission, vision, and strategy of a team of entrepreneurs headed by a charismatic heart surgeon who founded a heart hospital in Bangalore, India. The purpose of the hospital was to offer health care for the masses. This tertiary care hospital performed over 4,000 surgeries a year (approximately half on pediatric patients), which is more than that performed by The Cleveland Clinic and the Mayo Clinic (ranked #1 and #2 in the United States) combined. The interesting aspect of its business formula was its ability to offer such complex surgeries as CABG (popularly known as bypass surgery) for about $2,000, which was substantially less than other similarly equipped hospitals in India. Its founder has already entered into other complementary activities, such as a statewide insurance scheme for rural farmers--Yeshaswini. The founder has ambitious plans for a comprehensive "Walmartization" of health care in India. Includes color exhibits.
Swot Analysis of "Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A)" written by Tarun Khanna, V. Kasturi Rangan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hospital Heart facing as an external strategic factors. Some of the topics covered in Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) case study are - Strategic Management Strategies, Social enterprise, Strategy and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) casestudy better are - – increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, there is backlash against globalization, there is increasing trade war between United States & China,
cloud computing is disrupting traditional business models, technology disruption, etc
Introduction to SWOT Analysis of Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hospital Heart, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hospital Heart 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 Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) can be done for the following purposes –
1. Strategic planning using facts provided in Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) case study
2. Improving business portfolio management of Hospital Heart
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 Hospital Heart
Strengths Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hospital Heart in Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) Harvard Business Review case study are -
Highly skilled collaborators
– Hospital Heart has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Hospital Heart 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 Hospital Heart is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Hospital Heart has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) 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
– Hospital Heart is one of the most innovative firm in sector. Manager in Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Hospital Heart in the sector have low bargaining power. Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hospital Heart to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) firm has clearly differentiated products in the market place. This has enabled Hospital Heart to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Hospital Heart to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Hospital Heart is one of the leading recruiters in the industry. Managers in the Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Hospital Heart 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.
Effective Research and Development (R&D)
– Hospital Heart 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 Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) - 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
– Hospital Heart has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hospital Heart to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Hospital Heart digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hospital Heart 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
– Hospital Heart has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hospital Heart 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 Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) are -
Increasing silos among functional specialists
– The organizational structure of Hospital Heart is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Hospital Heart needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hospital Heart to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Hospital Heart 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.
Skills based hiring
– The stress on hiring functional specialists at Hospital Heart 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.
Low market penetration in new markets
– Outside its home market of Hospital Heart, firm in the HBR case study Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) 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 Hospital Heart has relatively successful track record of launching new products.
Products dominated business model
– Even though Hospital Heart 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 - Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Hospital Heart 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A), in the dynamic environment Hospital Heart has struggled to respond to the nimble upstart competition. Hospital Heart has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A), is just above the industry average. Hospital Heart 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.
Interest costs
– Compare to the competition, Hospital Heart 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.
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 Hospital Heart supply chain. Even after few cautionary changes mentioned in the HBR case study - Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hospital Heart vulnerable to further global disruptions in South East Asia.
Opportunities Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) | 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 Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) are -
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. Hospital Heart 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. Hospital Heart 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hospital Heart 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.
Building a culture of innovation
– managers at Hospital Heart 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 Innovation & Entrepreneurship segment.
Developing new processes and practices
– Hospital Heart 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
– Hospital Heart 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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Hospital Heart to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hospital Heart 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, Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hospital Heart in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hospital Heart 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 Hospital Heart to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Hospital Heart can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Using analytics as competitive advantage
– Hospital Heart 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 Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hospital Heart to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Hospital Heart can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hospital Heart is facing challenges because of the dominance of functional experts in the organization. Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) 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.
Threats Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) are -
Stagnating economy with rate increase
– Hospital Heart 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.
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 Hospital Heart business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Hospital Heart
– 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 Hospital Heart.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A), Hospital Heart 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 .
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 Hospital Heart in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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. Hospital Heart needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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.
Consumer confidence and its impact on Hospital Heart 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hospital Heart 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.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hospital Heart can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hospital Heart with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Hospital Heart has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Hospital Heart 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.
Shortening product life cycle
– it is one of the major threat that Hospital Heart is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) 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 Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) 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 Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) 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 Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) 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 Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A) 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 Hospital Heart needs to make to build a sustainable competitive advantage.
