CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth
Stryker CEO Kevin Lobo describes the challenges and opportunities of running one of the world's most successful global medical technology companies. In a wide ranging interview, he explains the thinking behind the different types of acquisitions his company has made; the cultural hiccup that one of those acquisitions led to, and how it was handled; and the importance of focusing on the mid-tier market in emerging markets.
Swot Analysis of "CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth" written by Kevin Lobo, William Mitchell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lobo Kevin facing as an external strategic factors. Some of the topics covered in CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth case study are - Strategic Management Strategies, International business, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth casestudy better are - – talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, there is backlash against globalization, increasing commodity prices, central banks are concerned over increasing inflation,
increasing household debt because of falling income levels, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lobo Kevin, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lobo Kevin 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 CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth can be done for the following purposes –
1. Strategic planning using facts provided in CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth case study
2. Improving business portfolio management of Lobo Kevin
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 Lobo Kevin
Strengths CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lobo Kevin in CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth Harvard Business Review case study are -
Successful track record of launching new products
– Lobo Kevin has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lobo Kevin 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Lobo Kevin digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Lobo Kevin 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.
High brand equity
– Lobo Kevin has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Lobo Kevin to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Lobo Kevin is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Lobo Kevin in the sector have low bargaining power. CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Lobo Kevin to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Lobo Kevin 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 CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth - 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
– Lobo Kevin 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 Kevin Lobo, William Mitchell 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.
Ability to recruit top talent
– Lobo Kevin is one of the leading recruiters in the industry. Managers in the CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Lobo Kevin is one of the most innovative firm in sector. Manager in CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Leadership & Managing People field
– Lobo Kevin 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 Lobo Kevin in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Lobo Kevin 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 CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Lobo Kevin 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.
Weaknesses CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth are -
Capital Spending Reduction
– Even during the low interest decade, Lobo Kevin 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.
Need for greater diversity
– Lobo Kevin 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.
Lack of clear differentiation of Lobo Kevin products
– To increase the profitability and margins on the products, Lobo Kevin needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Lobo Kevin, firm in the HBR case study CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth 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 Lobo Kevin 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth 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 Lobo Kevin has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Lobo Kevin is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Lobo Kevin needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Lobo Kevin to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Lobo Kevin 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth, is just above the industry average. Lobo Kevin 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 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 Lobo Kevin supply chain. Even after few cautionary changes mentioned in the HBR case study - CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Lobo Kevin vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth, 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.
Opportunities CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth | 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 CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Lobo Kevin in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Lobo Kevin 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Lobo Kevin 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.
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. Lobo Kevin can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Lobo Kevin 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.
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. Lobo Kevin 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. Lobo Kevin 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 Lobo Kevin has opened avenues for new revenue streams for the organization in the industry. This can help Lobo Kevin to build a more holistic ecosystem as suggested in the CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth case study. Lobo Kevin can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Lobo Kevin in the consumer business. Now Lobo Kevin can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Lobo Kevin can use these opportunities to build new business models that can help the communities that Lobo Kevin operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Better consumer reach
– The expansion of the 5G network will help Lobo Kevin to increase its market reach. Lobo Kevin 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.
Leveraging digital technologies
– Lobo Kevin 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Lobo Kevin can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Lobo Kevin 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.
Threats CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth are -
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 Lobo Kevin in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing wage structure of Lobo Kevin
– 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 Lobo Kevin.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Lobo Kevin 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, Lobo Kevin 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 CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth .
Stagnating economy with rate increase
– Lobo Kevin 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.
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. Lobo Kevin 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.
Shortening product life cycle
– it is one of the major threat that Lobo Kevin is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth, Lobo Kevin 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Lobo Kevin 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.
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. Lobo Kevin can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Lobo Kevin needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
Weighted SWOT Analysis of CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth 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 CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth 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 CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth 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 CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth 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 CEO Spotlight: Kevin Lobo on Stryker's Approach to Global Growth 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 Lobo Kevin needs to make to build a sustainable competitive advantage.