Narayana Hrudayalaya: From Heart Care to Human Care SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Narayana Hrudayalaya: From Heart Care to Human Care
Narayana Hrudayalaya (NH), a leading cardiac hospital network with many firsts to its credit, has revolutionized heart care in India. It has a market share close to 15 per cent in the cardiac sector, has successfully completed 70,000 surgeries and has given insurance to over four million farmers through its microinsurance scheme. Its motto, "caring with compassion," is its guiding philosophy and the telemedicine network set up at NH has been able to provide treatment for over 50,000 cardiac patients free of charge. The case highlights the evolution of NH and the vision of its founder, and outlines his ambitions and struggles in seeking to increase the number of cardiac surgeries performed each day. How can he retain the top surgeons and fulfill his mission to offer affordable heart care while the compensation of doctors is rapidly increasing? Tanusree Mazumder is affiliated with Management Development Institute. Radha R. Sharma is affiliated with Management Development Institute.
Swot Analysis of "Narayana Hrudayalaya: From Heart Care to Human Care" written by Tanusree Mazumder, Radha R. Sharma includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cardiac Nh facing as an external strategic factors. Some of the topics covered in Narayana Hrudayalaya: From Heart Care to Human Care case study are - Strategic Management Strategies, International business, Leadership, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Narayana Hrudayalaya: From Heart Care to Human Care casestudy better are - – increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, technology disruption,
supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Narayana Hrudayalaya: From Heart Care to Human Care
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Narayana Hrudayalaya: From Heart Care to Human Care case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cardiac Nh, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cardiac Nh 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 Narayana Hrudayalaya: From Heart Care to Human Care can be done for the following purposes –
1. Strategic planning using facts provided in Narayana Hrudayalaya: From Heart Care to Human Care case study
2. Improving business portfolio management of Cardiac Nh
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 Cardiac Nh
Strengths Narayana Hrudayalaya: From Heart Care to Human Care | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cardiac Nh in Narayana Hrudayalaya: From Heart Care to Human Care Harvard Business Review case study are -
Analytics focus
– Cardiac Nh 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 Tanusree Mazumder, Radha R. Sharma 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 lead change in Leadership & Managing People field
– Cardiac Nh 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 Cardiac Nh in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Cardiac Nh is one of the leading recruiters in the industry. Managers in the Narayana Hrudayalaya: From Heart Care to Human Care are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Cardiac Nh is present in almost all the verticals within the industry. This has provided firm in Narayana Hrudayalaya: From Heart Care to Human Care 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.
Cross disciplinary teams
– Horizontal connected teams at the Cardiac Nh 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Narayana Hrudayalaya: From Heart Care to Human Care firm has clearly differentiated products in the market place. This has enabled Cardiac Nh to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Cardiac Nh to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Cardiac Nh in the sector have low bargaining power. Narayana Hrudayalaya: From Heart Care to Human Care has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cardiac Nh to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Cardiac Nh digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cardiac Nh 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.
Successful track record of launching new products
– Cardiac Nh has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cardiac Nh 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.
Effective Research and Development (R&D)
– Cardiac Nh has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Narayana Hrudayalaya: From Heart Care to Human Care - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Cardiac Nh in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Cardiac Nh has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Narayana Hrudayalaya: From Heart Care to Human Care 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.
Weaknesses Narayana Hrudayalaya: From Heart Care to Human Care | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Narayana Hrudayalaya: From Heart Care to Human Care are -
Increasing silos among functional specialists
– The organizational structure of Cardiac Nh is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Cardiac Nh needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cardiac Nh 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, Cardiac Nh is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Narayana Hrudayalaya: From Heart Care to Human Care can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Cardiac Nh 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, Cardiac Nh 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.
Slow to strategic competitive environment developments
– As Narayana Hrudayalaya: From Heart Care to Human Care HBR case study mentions - Cardiac Nh 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Narayana Hrudayalaya: From Heart Care to Human Care, it seems that the employees of Cardiac Nh 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.
Slow decision making process
– As mentioned earlier in the report, Cardiac Nh 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. Cardiac Nh 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.
Lack of clear differentiation of Cardiac Nh products
– To increase the profitability and margins on the products, Cardiac Nh needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Narayana Hrudayalaya: From Heart Care to Human Care that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Narayana Hrudayalaya: From Heart Care to Human Care can leverage the sales team experience to cultivate customer relationships as Cardiac Nh is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Cardiac Nh, firm in the HBR case study Narayana Hrudayalaya: From Heart Care to Human Care needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Narayana Hrudayalaya: From Heart Care to Human Care, in the dynamic environment Cardiac Nh has struggled to respond to the nimble upstart competition. Cardiac Nh has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Narayana Hrudayalaya: From Heart Care to Human Care | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Narayana Hrudayalaya: From Heart Care to Human Care are -
Loyalty marketing
– Cardiac Nh 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cardiac Nh to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Cardiac Nh to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Cardiac Nh 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.
Using analytics as competitive advantage
– Cardiac Nh has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Narayana Hrudayalaya: From Heart Care to Human Care - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cardiac Nh to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Cardiac Nh 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cardiac Nh 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, Narayana Hrudayalaya: From Heart Care to Human Care, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Cardiac Nh has opened avenues for new revenue streams for the organization in the industry. This can help Cardiac Nh to build a more holistic ecosystem as suggested in the Narayana Hrudayalaya: From Heart Care to Human Care case study. Cardiac Nh can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cardiac Nh 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.
Learning at scale
– Online learning technologies has now opened space for Cardiac Nh 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.
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. Cardiac Nh can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Cardiac Nh 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 Leadership & Managing People segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cardiac Nh can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Cardiac Nh 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 Narayana Hrudayalaya: From Heart Care to Human Care External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Narayana Hrudayalaya: From Heart Care to Human Care are -
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.
Environmental challenges
– Cardiac Nh 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. Cardiac Nh can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Cardiac Nh 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 Cardiac Nh in the Leadership & Managing People sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Narayana Hrudayalaya: From Heart Care to Human Care, Cardiac Nh 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 .
Regulatory challenges
– Cardiac Nh 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.
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. Cardiac Nh 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.
Consumer confidence and its impact on Cardiac Nh 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.
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.
Stagnating economy with rate increase
– Cardiac Nh 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.
Increasing wage structure of Cardiac Nh
– 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 Cardiac Nh.
High dependence on third party suppliers
– Cardiac Nh 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.
Shortening product life cycle
– it is one of the major threat that Cardiac Nh is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Narayana Hrudayalaya: From Heart Care to Human Care Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Narayana Hrudayalaya: From Heart Care to Human Care needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Narayana Hrudayalaya: From Heart Care to Human Care is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Narayana Hrudayalaya: From Heart Care to Human Care is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Narayana Hrudayalaya: From Heart Care to Human Care 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 Cardiac Nh needs to make to build a sustainable competitive advantage.