Neurotrack and the Alzheimer's Puzzle SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Neurotrack and the Alzheimer's Puzzle
Elli Kaplan founded Neurotrack in 2012 with a breakthrough non-invasive cognitive diagnostics test that will detect Alzheimer's Disease in its earliest pre-symptomatic stages. While the company has gained great traction in the three years since it was started, with no therapeutic product available in the foreseeable future Kaplan is considering whether it is time to change the company's business model.
Authors :: Richard G. Hamermesh, Liz Kind, Carin-Isabel Knoop
Swot Analysis of "Neurotrack and the Alzheimer's Puzzle" written by Richard G. Hamermesh, Liz Kind, Carin-Isabel Knoop includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Neurotrack Kaplan facing as an external strategic factors. Some of the topics covered in Neurotrack and the Alzheimer's Puzzle case study are - Strategic Management Strategies, Health and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Neurotrack and the Alzheimer's Puzzle casestudy better are - – central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , increasing transportation and logistics costs, geopolitical disruptions, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs,
challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Neurotrack and the Alzheimer's Puzzle
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Neurotrack and the Alzheimer's Puzzle case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Neurotrack Kaplan, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Neurotrack Kaplan 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 Neurotrack and the Alzheimer's Puzzle can be done for the following purposes –
1. Strategic planning using facts provided in Neurotrack and the Alzheimer's Puzzle case study
2. Improving business portfolio management of Neurotrack Kaplan
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 Neurotrack Kaplan
Strengths Neurotrack and the Alzheimer's Puzzle | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Neurotrack Kaplan in Neurotrack and the Alzheimer's Puzzle Harvard Business Review case study are -
High brand equity
– Neurotrack Kaplan has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Neurotrack Kaplan to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Neurotrack Kaplan 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 Neurotrack and the Alzheimer's Puzzle - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Neurotrack Kaplan is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Neurotrack Kaplan 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 Neurotrack and the Alzheimer's Puzzle HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Neurotrack Kaplan has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Neurotrack Kaplan 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.
Low bargaining power of suppliers
– Suppliers of Neurotrack Kaplan in the sector have low bargaining power. Neurotrack and the Alzheimer's Puzzle has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Neurotrack Kaplan to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Neurotrack Kaplan
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Neurotrack Kaplan does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Neurotrack Kaplan has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Neurotrack and the Alzheimer's Puzzle 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
– Neurotrack Kaplan 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 Neurotrack Kaplan in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Neurotrack Kaplan is present in almost all the verticals within the industry. This has provided firm in Neurotrack and the Alzheimer's Puzzle 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Neurotrack and the Alzheimer's Puzzle firm has clearly differentiated products in the market place. This has enabled Neurotrack Kaplan to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Neurotrack Kaplan to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Neurotrack and the Alzheimer's Puzzle 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.
Weaknesses Neurotrack and the Alzheimer's Puzzle | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Neurotrack and the Alzheimer's Puzzle are -
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 Neurotrack Kaplan supply chain. Even after few cautionary changes mentioned in the HBR case study - Neurotrack and the Alzheimer's Puzzle, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Neurotrack Kaplan vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Neurotrack Kaplan 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 strategic competitive environment developments
– As Neurotrack and the Alzheimer's Puzzle HBR case study mentions - Neurotrack Kaplan 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Richard G. Hamermesh, Liz Kind, Carin-Isabel Knoop suggests that, Neurotrack Kaplan 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.
High cash cycle compare to competitors
Neurotrack Kaplan 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.
Aligning sales with marketing
– It come across in the case study Neurotrack and the Alzheimer's Puzzle 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 Neurotrack and the Alzheimer's Puzzle can leverage the sales team experience to cultivate customer relationships as Neurotrack Kaplan is planning to shift buying processes online.
Products dominated business model
– Even though Neurotrack Kaplan 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 - Neurotrack and the Alzheimer's Puzzle should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Neurotrack Kaplan is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Neurotrack Kaplan needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Neurotrack Kaplan to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Neurotrack Kaplan is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Neurotrack and the Alzheimer's Puzzle can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Neurotrack Kaplan products
– To increase the profitability and margins on the products, Neurotrack Kaplan needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Neurotrack Kaplan 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 Neurotrack and the Alzheimer's Puzzle | 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 Neurotrack and the Alzheimer's Puzzle are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Neurotrack Kaplan 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
– Neurotrack Kaplan 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 Neurotrack and the Alzheimer's Puzzle - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Neurotrack Kaplan to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Neurotrack Kaplan can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Neurotrack and the Alzheimer's Puzzle 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. Neurotrack Kaplan can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Neurotrack Kaplan 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.
Better consumer reach
– The expansion of the 5G network will help Neurotrack Kaplan to increase its market reach. Neurotrack Kaplan 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Neurotrack Kaplan 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Neurotrack Kaplan 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.
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 Neurotrack Kaplan in the consumer business. Now Neurotrack Kaplan can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Neurotrack Kaplan 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Neurotrack Kaplan 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, Neurotrack and the Alzheimer's Puzzle, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Neurotrack Kaplan 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. Neurotrack Kaplan 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.
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 Neurotrack Kaplan 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.
Threats Neurotrack and the Alzheimer's Puzzle External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Neurotrack and the Alzheimer's Puzzle are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Neurotrack and the Alzheimer's Puzzle, Neurotrack Kaplan 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 .
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 Neurotrack Kaplan.
Technology acceleration in Forth Industrial Revolution
– Neurotrack Kaplan has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Neurotrack Kaplan 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.
Increasing wage structure of Neurotrack Kaplan
– 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 Neurotrack Kaplan.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Neurotrack Kaplan with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Stagnating economy with rate increase
– Neurotrack Kaplan 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 Neurotrack Kaplan business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Neurotrack Kaplan 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.
Regulatory challenges
– Neurotrack Kaplan 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Neurotrack Kaplan 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.
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 Neurotrack Kaplan in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Neurotrack and the Alzheimer's Puzzle 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 Neurotrack and the Alzheimer's Puzzle 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 Neurotrack and the Alzheimer's Puzzle 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 Neurotrack and the Alzheimer's Puzzle 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 Neurotrack and the Alzheimer's Puzzle 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 Neurotrack Kaplan needs to make to build a sustainable competitive advantage.