Using the SWOT Framework in the Healthcare Sector SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Using the SWOT Framework in the Healthcare Sector
Analyzing an organization using the strengths, weaknesses, opportunities, and threats (SWOT) framework generates crucial insights for decisions on major new initiatives. For example, when considering an acquisition or launching a new product or service, a SWOT analysis can raise warnings about customer sensitivities or gaps in expertise; alternatively, it can reveal new lines of business and unmet needs that may lead to new business opportunities. A SWOT analysis also serves as a typical first step in a broader strategic planning process. This technical note focuses on the use of a SWOT analysis in the healthcare sector, including recommendations for key questions to ask when initiating a SWOT analysis and advice for arranging information in a way that supports strategic decision-making. The SWOT approach has gained importance in the healthcare sector in recent years due to both market and policy shifts. Healthcare is a site for major reform as policy-makers seek to reduce costs and encourage innovation. Across the developed world and in many developing countries, better strategic decision-making is essential to healthcare providers and finance organizations as they care for ageing populations, seek to reduce the impacts of lifestyle-related diseases such as obesity, and work to manage expenses associated with treating chronic diseases. Arthur Daemmrich is affiliated with Smithsonian Institution.
Swot Analysis of "Using the SWOT Framework in the Healthcare Sector" written by Arthur A. Daemmrich includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Swot Healthcare facing as an external strategic factors. Some of the topics covered in Using the SWOT Framework in the Healthcare Sector case study are - Strategic Management Strategies, Strategic planning and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Using the SWOT Framework in the Healthcare Sector casestudy better are - – increasing household debt because of falling income levels, there is backlash against globalization, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, technology disruption, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies,
supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Using the SWOT Framework in the Healthcare Sector
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Using the SWOT Framework in the Healthcare Sector case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Swot Healthcare, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Swot Healthcare 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 Using the SWOT Framework in the Healthcare Sector can be done for the following purposes –
1. Strategic planning using facts provided in Using the SWOT Framework in the Healthcare Sector case study
2. Improving business portfolio management of Swot Healthcare
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Swot Healthcare
Strengths Using the SWOT Framework in the Healthcare Sector | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Swot Healthcare in Using the SWOT Framework in the Healthcare Sector Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Swot Healthcare 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.
High brand equity
– Swot Healthcare has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Swot Healthcare to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Swot Healthcare has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Using the SWOT Framework in the Healthcare Sector 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.
Low bargaining power of suppliers
– Suppliers of Swot Healthcare in the sector have low bargaining power. Using the SWOT Framework in the Healthcare Sector has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Swot Healthcare to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Swot Healthcare 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 Using the SWOT Framework in the Healthcare Sector HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Swot Healthcare is one of the leading recruiters in the industry. Managers in the Using the SWOT Framework in the Healthcare Sector are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Swot Healthcare is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Swot Healthcare 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.
Diverse revenue streams
– Swot Healthcare is present in almost all the verticals within the industry. This has provided firm in Using the SWOT Framework in the Healthcare Sector case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Innovation driven organization
– Swot Healthcare is one of the most innovative firm in sector. Manager in Using the SWOT Framework in the Healthcare Sector Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Swot Healthcare 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 Swot Healthcare is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Using the SWOT Framework in the Healthcare Sector Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Swot Healthcare 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 Using the SWOT Framework in the Healthcare Sector - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Using the SWOT Framework in the Healthcare Sector | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Using the SWOT Framework in the Healthcare Sector are -
Slow decision making process
– As mentioned earlier in the report, Swot Healthcare has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Swot Healthcare even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High cash cycle compare to competitors
Swot Healthcare 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Swot Healthcare is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Using the SWOT Framework in the Healthcare Sector can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Using the SWOT Framework in the Healthcare Sector has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Swot Healthcare 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Using the SWOT Framework in the Healthcare Sector 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 Using the SWOT Framework in the Healthcare Sector can leverage the sales team experience to cultivate customer relationships as Swot Healthcare is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Swot Healthcare 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.
Need for greater diversity
– Swot Healthcare 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.
No frontier risks strategy
– After analyzing the HBR case study Using the SWOT Framework in the Healthcare Sector, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Using the SWOT Framework in the Healthcare Sector 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 Swot Healthcare has relatively successful track record of launching new products.
Lack of clear differentiation of Swot Healthcare products
– To increase the profitability and margins on the products, Swot Healthcare needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Swot Healthcare 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 Using the SWOT Framework in the Healthcare Sector | 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 Using the SWOT Framework in the Healthcare Sector are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Swot Healthcare is facing challenges because of the dominance of functional experts in the organization. Using the SWOT Framework in the Healthcare Sector case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help Swot Healthcare to increase its market reach. Swot Healthcare 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.
Creating value in data economy
– The success of analytics program of Swot Healthcare has opened avenues for new revenue streams for the organization in the industry. This can help Swot Healthcare to build a more holistic ecosystem as suggested in the Using the SWOT Framework in the Healthcare Sector case study. Swot Healthcare can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Swot Healthcare can use these opportunities to build new business models that can help the communities that Swot Healthcare operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Learning at scale
– Online learning technologies has now opened space for Swot Healthcare 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Swot Healthcare 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. Swot Healthcare 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Swot Healthcare can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Swot Healthcare 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.
Buying journey improvements
– Swot Healthcare can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Using the SWOT Framework in the Healthcare Sector 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.
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. Swot Healthcare can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Swot Healthcare in the consumer business. Now Swot Healthcare can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Swot Healthcare can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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
– Swot Healthcare can develop new processes and procedures in Leadership & Managing People 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.
Threats Using the SWOT Framework in the Healthcare Sector External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Using the SWOT Framework in the Healthcare Sector are -
Stagnating economy with rate increase
– Swot Healthcare 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.
Regulatory challenges
– Swot Healthcare 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 Leadership & Managing People industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Swot Healthcare in the Leadership & Managing People industry. The Leadership & Managing People 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.
Shortening product life cycle
– it is one of the major threat that Swot Healthcare is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Swot Healthcare 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. Swot Healthcare can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Swot Healthcare 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 Using the SWOT Framework in the Healthcare Sector .
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Swot Healthcare.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Swot Healthcare can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Swot Healthcare in the Leadership & Managing People sector and impact the bottomline 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 Swot Healthcare business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Swot Healthcare 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Using the SWOT Framework in the Healthcare Sector, Swot Healthcare may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
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. Swot Healthcare needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Using the SWOT Framework in the Healthcare Sector 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 Using the SWOT Framework in the Healthcare Sector 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 Using the SWOT Framework in the Healthcare Sector 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 Using the SWOT Framework in the Healthcare Sector 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 Using the SWOT Framework in the Healthcare Sector 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 Swot Healthcare needs to make to build a sustainable competitive advantage.
