SWOT Analysis / TOWS Matrix for Narayana Hrudayalaya (India)
Based on various researches at Oak Spring University , Narayana Hrudayalaya is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, technology disruption,
wage bills are increasing, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Narayana Hrudayalaya
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Narayana Hrudayalaya can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Narayana Hrudayalaya, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Narayana Hrudayalaya 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 can be done for the following purposes –
1. Strategic planning of Narayana Hrudayalaya
2. Improving business portfolio management of Narayana Hrudayalaya
3. Assessing feasibility of the new initiative in India
4. Making a Healthcare Facilities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Narayana Hrudayalaya
Strengths of Narayana Hrudayalaya | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Narayana Hrudayalaya are -
Analytics focus
– Narayana Hrudayalaya 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 Healthcare Facilities industry. The technology infrastructure of India is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High brand equity
– Narayana Hrudayalaya has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Narayana Hrudayalaya to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Narayana Hrudayalaya 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.
Innovation driven organization
– Narayana Hrudayalaya is one of the most innovative firm in Healthcare Facilities sector.
Low bargaining power of suppliers
– Suppliers of Narayana Hrudayalaya in the Healthcare sector have low bargaining power. Narayana Hrudayalaya has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Narayana Hrudayalaya to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Narayana Hrudayalaya is present in almost all the verticals within the Healthcare Facilities industry. This has provided Narayana Hrudayalaya 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.
Training and development
– Narayana Hrudayalaya has one of the best training and development program in Healthcare industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Organizational Resilience of Narayana Hrudayalaya
– The covid-19 pandemic has put organizational resilience at the centre of everthing Narayana Hrudayalaya does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Narayana Hrudayalaya is one of the leading players in the Healthcare Facilities industry in India. It is in a position to attract the best talent available in India. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Healthcare Facilities industry
- digital transformation varies from industry to industry. For Narayana Hrudayalaya digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Narayana Hrudayalaya 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.
Learning organization
- Narayana Hrudayalaya 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 Narayana Hrudayalaya is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Narayana Hrudayalaya emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Narayana Hrudayalaya has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Healthcare Facilities industry. Secondly the value chain collaborators of Narayana Hrudayalaya have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses of Narayana Hrudayalaya | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Narayana Hrudayalaya are -
Compensation and incentives
– The revenue per employee of Narayana Hrudayalaya is just above the Healthcare Facilities industry average. It 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Narayana Hrudayalaya is slow explore the new channels of communication. These new channels of communication can help Narayana Hrudayalaya to provide better information regarding Healthcare Facilities products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– From the 10K / annual statement of Narayana Hrudayalaya, it seems that company is thinking out the frontier risks that can impact Healthcare Facilities industry. 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 bargaining power of channel partners in Healthcare Facilities industry
– because of the regulatory requirements in India, Narayana Hrudayalaya 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 Healthcare Facilities industry.
Employees’ less understanding of Narayana Hrudayalaya strategy
– From the outside it seems that the employees of Narayana Hrudayalaya 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.
Low market penetration in new markets
– Outside its home market of India, Narayana Hrudayalaya needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– From the outside it seems that Narayana Hrudayalaya needs to have more collaboration between its sales team and marketing team. Sales professionals in the Healthcare Facilities industry have deep experience in developing customer relationships. Marketing department at Narayana Hrudayalaya can leverage the sales team experience to cultivate customer relationships as Narayana Hrudayalaya is planning to shift buying processes online.
Lack of clear differentiation of Narayana Hrudayalaya products
– To increase the profitability and margins on the products, Narayana Hrudayalaya needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Narayana Hrudayalaya is dominated by functional specialists. It is not different from other players in the Healthcare Facilities industry, but Narayana Hrudayalaya needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Narayana Hrudayalaya to focus more on services in the Healthcare Facilities industry rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the Healthcare Facilities industry, Narayana Hrudayalaya 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.
Ability to respond to the competition
– As the decision making is very deliberative at Narayana Hrudayalaya, in the dynamic environment of Healthcare Facilities industry it has struggled to respond to the nimble upstart competition. Narayana Hrudayalaya has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Narayana Hrudayalaya Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Narayana Hrudayalaya are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Narayana Hrudayalaya 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 Narayana Hrudayalaya to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Narayana Hrudayalaya can use these opportunities to build new business models that can help the communities that Narayana Hrudayalaya operates in. Secondly it can use opportunities from government spending in Healthcare Facilities sector.
Learning at scale
– Online learning technologies has now opened space for Narayana Hrudayalaya 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.
Building a culture of innovation
– managers at Narayana Hrudayalaya 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 Healthcare Facilities industry.
Using analytics as competitive advantage
– Narayana Hrudayalaya has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Healthcare Facilities sector. This continuous investment in analytics has enabled Narayana Hrudayalaya to build a competitive advantage using analytics. The analytics driven competitive advantage can help Narayana Hrudayalaya to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Healthcare Facilities industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Narayana Hrudayalaya 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. Narayana Hrudayalaya 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Narayana Hrudayalaya in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Healthcare Facilities industry, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Narayana Hrudayalaya has opened avenues for new revenue streams for the organization in Healthcare Facilities industry. This can help Narayana Hrudayalaya to build a more holistic ecosystem for Narayana Hrudayalaya products in the Healthcare Facilities industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Narayana Hrudayalaya can develop new processes and procedures in Healthcare Facilities 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.
Better consumer reach
– The expansion of the 5G network will help Narayana Hrudayalaya to increase its market reach. Narayana Hrudayalaya 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, Narayana Hrudayalaya 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 Healthcare Facilities industry, but it has also influenced the consumer preferences. Narayana Hrudayalaya can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions in Healthcare Facilities industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Narayana Hrudayalaya in the Healthcare Facilities industry. Now Narayana Hrudayalaya can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Narayana Hrudayalaya External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Narayana Hrudayalaya are -
Environmental challenges
– Narayana Hrudayalaya 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. Narayana Hrudayalaya can take advantage of this fund but it will also bring new competitors in the Healthcare Facilities industry.
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. Narayana Hrudayalaya 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.
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. Narayana Hrudayalaya needs to understand the core reasons impacting the Healthcare Facilities industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Narayana Hrudayalaya may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Healthcare Facilities sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Narayana Hrudayalaya in Healthcare Facilities industry. The Healthcare Facilities 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.
High dependence on third party suppliers
– Narayana Hrudayalaya 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.
Easy access to finance
– Easy access to finance in Healthcare Facilities industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Narayana Hrudayalaya can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Narayana Hrudayalaya 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 Healthcare Facilities industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Narayana Hrudayalaya 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 Narayana Hrudayalaya prominent markets.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Healthcare Facilities industry are lowering. It can presents Narayana Hrudayalaya with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Healthcare Facilities 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 Narayana Hrudayalaya.
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 Narayana Hrudayalaya in the Healthcare Facilities sector and impact the bottomline of the organization.
Regulatory challenges
– Narayana Hrudayalaya 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 Healthcare Facilities industry regulations.
Weighted SWOT Analysis of Narayana Hrudayalaya Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Narayana Hrudayalaya 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 Narayana Hrudayalaya 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 Narayana Hrudayalaya 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 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 Narayana Hrudayalaya needs to make to build a sustainable competitive advantage.