Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B)

Narayana Hrudayalaya (NH) has expanded into a multi-specialty health city in Bangalore and has grown to twelve locations across India. The hospital plans to build 300-bed secondary-care hospitals in smaller cities across India, with a goal to operate 30,000 beds in seven years, which will make it comparable with the world's largest hospital chains. NH operates the world's largest tele-cardiology network, which provides consultations to people in 800 locations across the world, including 53 African countries. Management also plans to open a 2,000-bed hospital in the Cayman Islands to provide underinsured Americans with tertiary care procedures at 40% below U.S. prices, thereby bringing Dr. Shetty's model of compassionate care at affordable prices to the developed world.

Authors :: Tarun Khanna, Tanya Bijlani

Topics :: Innovation & Entrepreneurship

Tags :: Economy, Government, Innovation, International business, Social enterprise, Strategy execution, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B)" written by Tarun Khanna, Tanya Bijlani includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hospital Hrudayalaya facing as an external strategic factors. Some of the topics covered in Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) case study are - Strategic Management Strategies, Economy, Government, Innovation, International business, Social enterprise, Strategy execution 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 (B) casestudy better are - – central banks are concerned over increasing inflation, there is increasing trade war between United States & China, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, etc

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Introduction to SWOT Analysis of Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B)

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 (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hospital Hrudayalaya, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hospital Hrudayalaya 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) can be done for the following purposes –
1. Strategic planning using facts provided in Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) case study
2. Improving business portfolio management of Hospital Hrudayalaya
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 Hrudayalaya

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Strengths Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Hospital Hrudayalaya in Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) Harvard Business Review case study are -

Effective Research and Development (R&D)

– Hospital Hrudayalaya 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 (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Analytics focus

– Hospital Hrudayalaya 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 Tarun Khanna, Tanya Bijlani 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.

Superior customer experience

– The customer experience strategy of Hospital Hrudayalaya in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

High switching costs

– The high switching costs that Hospital Hrudayalaya 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.

Strong track record of project management

– Hospital Hrudayalaya 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 Hospital Hrudayalaya 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.

Innovation driven organization

– Hospital Hrudayalaya is one of the most innovative firm in sector. Manager in Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Successful track record of launching new products

– Hospital Hrudayalaya has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hospital Hrudayalaya 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.

Training and development

– Hospital Hrudayalaya 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 (B) 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.

Ability to lead change in Innovation & Entrepreneurship field

– Hospital Hrudayalaya 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 Hospital Hrudayalaya in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Ability to recruit top talent

– Hospital Hrudayalaya is one of the leading recruiters in the industry. Managers in the Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Highly skilled collaborators

– Hospital Hrudayalaya 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 (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

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Weaknesses Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) | 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 (B) are -

Skills based hiring

– The stress on hiring functional specialists at Hospital Hrudayalaya 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.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B), it seems that the employees of Hospital Hrudayalaya 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B), is just above the industry average. Hospital Hrudayalaya 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.

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 (B) 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 Hrudayalaya has relatively successful track record of launching new products.

Increasing silos among functional specialists

– The organizational structure of Hospital Hrudayalaya is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Hospital Hrudayalaya needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hospital Hrudayalaya to focus more on services rather than just following the product oriented approach.

Need for greater diversity

– Hospital Hrudayalaya 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

Hospital Hrudayalaya 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 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 Hrudayalaya supply chain. Even after few cautionary changes mentioned in the HBR case study - Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hospital Hrudayalaya vulnerable to further global disruptions in South East Asia.

Aligning sales with marketing

– It come across in the case study Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) 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 Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) can leverage the sales team experience to cultivate customer relationships as Hospital Hrudayalaya is planning to shift buying processes online.

Products dominated business model

– Even though Hospital Hrudayalaya 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 (B) should strive to include more intangible value offerings along with its core products and services.

Lack of clear differentiation of Hospital Hrudayalaya products

– To increase the profitability and margins on the products, Hospital Hrudayalaya needs to provide more differentiated products than what it is currently offering in the marketplace.

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Opportunities Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) | 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 (B) are -

Manufacturing automation

– Hospital Hrudayalaya can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Hospital Hrudayalaya 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.

Buying journey improvements

– Hospital Hrudayalaya 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 (B) 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.

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. Hospital Hrudayalaya can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Learning at scale

– Online learning technologies has now opened space for Hospital Hrudayalaya 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.

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 Hospital Hrudayalaya in the consumer business. Now Hospital Hrudayalaya can target international markets with far fewer capital restrictions requirements than the existing system.

Developing new processes and practices

– Hospital Hrudayalaya 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.

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 Hrudayalaya 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 Hrudayalaya 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Hospital Hrudayalaya 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hospital Hrudayalaya can use these opportunities to build new business models that can help the communities that Hospital Hrudayalaya operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.

Building a culture of innovation

– managers at Hospital Hrudayalaya 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.

Using analytics as competitive advantage

– Hospital Hrudayalaya 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 (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hospital Hrudayalaya to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Creating value in data economy

– The success of analytics program of Hospital Hrudayalaya has opened avenues for new revenue streams for the organization in the industry. This can help Hospital Hrudayalaya to build a more holistic ecosystem as suggested in the Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) case study. Hospital Hrudayalaya can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

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Threats Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) 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 (B) are -

Regulatory challenges

– Hospital Hrudayalaya 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 Innovation & Entrepreneurship industry regulations.

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.

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 Hrudayalaya business can come under increasing regulations regarding data privacy, data security, etc.

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 Hrudayalaya needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.

Increasing wage structure of Hospital Hrudayalaya

– 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 Hrudayalaya.

Technology acceleration in Forth Industrial Revolution

– Hospital Hrudayalaya has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Hospital Hrudayalaya 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.

Consumer confidence and its impact on Hospital Hrudayalaya 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hospital Hrudayalaya with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Hospital Hrudayalaya 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 Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) .

Shortening product life cycle

– it is one of the major threat that Hospital Hrudayalaya is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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. Hospital Hrudayalaya 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 dependence on third party suppliers

– Hospital Hrudayalaya 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Hospital Hrudayalaya 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.

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Weighted SWOT Analysis of Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B) 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 (B) 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 (B) 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 (B) 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 (B) 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 Hrudayalaya needs to make to build a sustainable competitive advantage.

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