Vaatsalya Hospitals: Affordable Health Care in Proximity SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Vaatsalya Hospitals: Affordable Health Care in Proximity
Vaatsalya has created a no-frills, low-price model of health care to address medical needs in semi-urban and rural India. In India, 80% of health-care facilities are located in urban areas even though close to 70% of the total population resides in villages and small towns. Vaatsalya bridges this gap by creating a viable business model, making good quality health care accessible at affordable prices. The explicit objective of Vaatsalya's business is to provide primary and secondary care services in rural and semi-urban areas. It aims to become a leading provider of low-cost but high-quality health-care services in the country by expanding its network.
Swot Analysis of "Vaatsalya Hospitals: Affordable Health Care in Proximity" written by Mukherjee Sourav, P. D. Jose includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Vaatsalya Care facing as an external strategic factors. Some of the topics covered in Vaatsalya Hospitals: Affordable Health Care in Proximity case study are - Strategic Management Strategies, Strategy and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Vaatsalya Hospitals: Affordable Health Care in Proximity casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, there is backlash against globalization, increasing household debt because of falling income levels,
increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, etc
Introduction to SWOT Analysis of Vaatsalya Hospitals: Affordable Health Care in Proximity
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Vaatsalya Hospitals: Affordable Health Care in Proximity case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vaatsalya Care, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vaatsalya Care 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 Vaatsalya Hospitals: Affordable Health Care in Proximity can be done for the following purposes –
1. Strategic planning using facts provided in Vaatsalya Hospitals: Affordable Health Care in Proximity case study
2. Improving business portfolio management of Vaatsalya Care
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 Vaatsalya Care
Strengths Vaatsalya Hospitals: Affordable Health Care in Proximity | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vaatsalya Care in Vaatsalya Hospitals: Affordable Health Care in Proximity Harvard Business Review case study are -
Analytics focus
– Vaatsalya Care 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 Mukherjee Sourav, P. D. Jose 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.
Effective Research and Development (R&D)
– Vaatsalya Care 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 Vaatsalya Hospitals: Affordable Health Care in Proximity - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Vaatsalya Care 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 Vaatsalya Care is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Vaatsalya Hospitals: Affordable Health Care in Proximity Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Vaatsalya Care has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Vaatsalya Care to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Vaatsalya Care is one of the leading recruiters in the industry. Managers in the Vaatsalya Hospitals: Affordable Health Care in Proximity 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 Vaatsalya Care 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.
Superior customer experience
– The customer experience strategy of Vaatsalya Care in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Vaatsalya Hospitals: Affordable Health Care in Proximity Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Organizational Resilience of Vaatsalya Care
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Vaatsalya Care does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Vaatsalya Care is one of the most innovative firm in sector. Manager in Vaatsalya Hospitals: Affordable Health Care in Proximity Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Vaatsalya Care is present in almost all the verticals within the industry. This has provided firm in Vaatsalya Hospitals: Affordable Health Care in Proximity 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Vaatsalya Care digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Vaatsalya Care 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.
Weaknesses Vaatsalya Hospitals: Affordable Health Care in Proximity | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Vaatsalya Hospitals: Affordable Health Care in Proximity are -
Skills based hiring
– The stress on hiring functional specialists at Vaatsalya Care 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.
Interest costs
– Compare to the competition, Vaatsalya Care 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 Vaatsalya Care supply chain. Even after few cautionary changes mentioned in the HBR case study - Vaatsalya Hospitals: Affordable Health Care in Proximity, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Vaatsalya Care vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Vaatsalya Hospitals: Affordable Health Care in Proximity, it seems that the employees of Vaatsalya Care 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 Vaatsalya Hospitals: Affordable Health Care in Proximity 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 Vaatsalya Care has relatively successful track record of launching new products.
Products dominated business model
– Even though Vaatsalya Care 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 - Vaatsalya Hospitals: Affordable Health Care in Proximity should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Vaatsalya Hospitals: Affordable Health Care in Proximity, in the dynamic environment Vaatsalya Care has struggled to respond to the nimble upstart competition. Vaatsalya Care has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Vaatsalya Hospitals: Affordable Health Care in Proximity, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Increasing silos among functional specialists
– The organizational structure of Vaatsalya Care is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Vaatsalya Care needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Vaatsalya Care to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Vaatsalya Hospitals: Affordable Health Care in Proximity 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 Vaatsalya Hospitals: Affordable Health Care in Proximity can leverage the sales team experience to cultivate customer relationships as Vaatsalya Care is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Vaatsalya Care 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.
Opportunities Vaatsalya Hospitals: Affordable Health Care in Proximity | 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 Vaatsalya Hospitals: Affordable Health Care in Proximity are -
Manufacturing automation
– Vaatsalya Care 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.
Developing new processes and practices
– Vaatsalya Care 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.
Learning at scale
– Online learning technologies has now opened space for Vaatsalya Care 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Vaatsalya Care 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, Vaatsalya Hospitals: Affordable Health Care in Proximity, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Vaatsalya Care can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Vaatsalya Care 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. Vaatsalya Care 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.
Creating value in data economy
– The success of analytics program of Vaatsalya Care has opened avenues for new revenue streams for the organization in the industry. This can help Vaatsalya Care to build a more holistic ecosystem as suggested in the Vaatsalya Hospitals: Affordable Health Care in Proximity case study. Vaatsalya Care can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Vaatsalya Care 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Vaatsalya Care is facing challenges because of the dominance of functional experts in the organization. Vaatsalya Hospitals: Affordable Health Care in Proximity 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.
Leveraging digital technologies
– Vaatsalya Care 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 Vaatsalya Care 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.
Better consumer reach
– The expansion of the 5G network will help Vaatsalya Care to increase its market reach. Vaatsalya Care 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.
Loyalty marketing
– Vaatsalya Care 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 Vaatsalya Hospitals: Affordable Health Care in Proximity External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Vaatsalya Hospitals: Affordable Health Care in Proximity are -
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 Vaatsalya Care business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Vaatsalya Care
– 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 Vaatsalya Care.
High dependence on third party suppliers
– Vaatsalya Care 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.
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 Vaatsalya Care in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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. Vaatsalya Care 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.
Technology acceleration in Forth Industrial Revolution
– Vaatsalya Care has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Vaatsalya Care 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 Vaatsalya Care 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.
Shortening product life cycle
– it is one of the major threat that Vaatsalya Care is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Vaatsalya Care.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Vaatsalya Care with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Vaatsalya Care needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Vaatsalya Care can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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. Vaatsalya Care needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Vaatsalya Hospitals: Affordable Health Care in Proximity 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 Vaatsalya Hospitals: Affordable Health Care in Proximity 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 Vaatsalya Hospitals: Affordable Health Care in Proximity 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 Vaatsalya Hospitals: Affordable Health Care in Proximity 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 Vaatsalya Hospitals: Affordable Health Care in Proximity 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 Vaatsalya Care needs to make to build a sustainable competitive advantage.
