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Medikaloka Hermina (HEAL) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Medikaloka Hermina (Indonesia)


Based on various researches at Oak Spring University , Medikaloka Hermina is operating in a macro-environment that has been destablized by – there is backlash against globalization, 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, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, etc



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Introduction to SWOT Analysis of Medikaloka Hermina


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Medikaloka Hermina can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Medikaloka Hermina, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Medikaloka Hermina 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 Medikaloka Hermina can be done for the following purposes –
1. Strategic planning of Medikaloka Hermina
2. Improving business portfolio management of Medikaloka Hermina
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Healthcare Facilities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Medikaloka Hermina




Strengths of Medikaloka Hermina | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Medikaloka Hermina are -

Learning organization

- Medikaloka Hermina 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 Medikaloka Hermina is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Medikaloka Hermina emphasize – knowledge, initiative, and innovation.

Innovation driven organization

– Medikaloka Hermina is one of the most innovative firm in Healthcare Facilities sector.

Analytics focus

– Medikaloka Hermina 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 Indonesia 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.

Cross disciplinary teams

– Horizontal connected teams at the Medikaloka Hermina 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.

Effective Research and Development (R&D)

– Medikaloka Hermina has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Medikaloka Hermina staying ahead in the Healthcare Facilities industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Sustainable margins compare to other players in Healthcare Facilities industry

– Medikaloka Hermina has clearly differentiated products in the market place. This has enabled Medikaloka Hermina to fetch slight price premium compare to the competitors in the Healthcare Facilities industry. The sustainable margins have also helped Medikaloka Hermina to invest into research and development (R&D) and innovation.

Organizational Resilience of Medikaloka Hermina

– The covid-19 pandemic has put organizational resilience at the centre of everthing Medikaloka Hermina does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

High switching costs

– The high switching costs that Medikaloka Hermina 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.

Digital Transformation in Healthcare Facilities industry

- digital transformation varies from industry to industry. For Medikaloka Hermina digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Medikaloka Hermina 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.

Ability to recruit top talent

– Medikaloka Hermina is one of the leading players in the Healthcare Facilities industry in Indonesia. It is in a position to attract the best talent available in Indonesia. The firm has a robust talent identification program that helps in identifying the brightest.

Superior customer experience

– The customer experience strategy of Medikaloka Hermina in Healthcare Facilities industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Diverse revenue streams

– Medikaloka Hermina is present in almost all the verticals within the Healthcare Facilities industry. This has provided Medikaloka Hermina 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.






Weaknesses of Medikaloka Hermina | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Medikaloka Hermina are -

No frontier risks strategy

– From the 10K / annual statement of Medikaloka Hermina, 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.

Aligning sales with marketing

– From the outside it seems that Medikaloka Hermina 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 Medikaloka Hermina can leverage the sales team experience to cultivate customer relationships as Medikaloka Hermina is planning to shift buying processes online.

Ability to respond to the competition

– As the decision making is very deliberative at Medikaloka Hermina, in the dynamic environment of Healthcare Facilities industry it has struggled to respond to the nimble upstart competition. Medikaloka Hermina has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Medikaloka Hermina is slow explore the new channels of communication. These new channels of communication can help Medikaloka Hermina to provide better information regarding Healthcare Facilities products and services. It can also build an online community to further reach out to potential customers.

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 Medikaloka Hermina supply chain. Even after few cautionary changes, Medikaloka Hermina is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Medikaloka Hermina vulnerable to further global disruptions in South East Asia.

Slow decision making process

– As mentioned earlier in the report, Medikaloka Hermina has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Healthcare Facilities industry over the last five years. Medikaloka Hermina 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 dependence on Medikaloka Hermina ‘s star products

– The top 2 products and services of Medikaloka Hermina still accounts for major business revenue. This dependence on star products in Healthcare Facilities industry has resulted into insufficient focus on developing new products, even though Medikaloka Hermina has relatively successful track record of launching new products.

Capital Spending Reduction

– Even during the low interest decade, Medikaloka Hermina 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 Healthcare Facilities industry using digital technology.

High operating costs

– Compare to the competitors, Medikaloka Hermina has high operating costs in the Healthcare Facilities industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Medikaloka Hermina lucrative customers.

Products dominated business model

– Even though Medikaloka Hermina has some of the most successful models in the Healthcare Facilities industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Medikaloka Hermina should strive to include more intangible value offerings along with its core products and services.

Lack of clear differentiation of Medikaloka Hermina products

– To increase the profitability and margins on the products, Medikaloka Hermina needs to provide more differentiated products than what it is currently offering in the marketplace.




Medikaloka Hermina Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities of Medikaloka Hermina are -

Creating value in data economy

– The success of analytics program of Medikaloka Hermina has opened avenues for new revenue streams for the organization in Healthcare Facilities industry. This can help Medikaloka Hermina to build a more holistic ecosystem for Medikaloka Hermina products in the Healthcare Facilities industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Manufacturing automation

– Medikaloka Hermina can use the latest technology developments to improve its manufacturing and designing process in Healthcare Facilities sector. 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.

Leveraging digital technologies

– Medikaloka Hermina 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 Medikaloka Hermina can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Developing new processes and practices

– Medikaloka Hermina 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Medikaloka Hermina 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Medikaloka Hermina 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.

Building a culture of innovation

– managers at Medikaloka Hermina 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Medikaloka Hermina is facing challenges because of the dominance of functional experts in the organization. Medikaloka Hermina can utilize new technology in the field of Healthcare Facilities industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Loyalty marketing

– Medikaloka Hermina 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.

Using analytics as competitive advantage

– Medikaloka Hermina 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 Medikaloka Hermina to build a competitive advantage using analytics. The analytics driven competitive advantage can help Medikaloka Hermina to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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 Medikaloka Hermina in the Healthcare Facilities industry. Now Medikaloka Hermina can target international markets with far fewer capital restrictions requirements than the existing system.

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. Medikaloka Hermina 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. Medikaloka Hermina 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.




Threats Medikaloka Hermina External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats of Medikaloka Hermina are -

High dependence on third party suppliers

– Medikaloka Hermina 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.

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 Medikaloka Hermina in the Healthcare Facilities sector and impact the bottomline of the organization.

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 Medikaloka Hermina.

Increasing wage structure of Medikaloka Hermina

– 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 Medikaloka Hermina.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Healthcare Facilities industry are lowering. It can presents Medikaloka Hermina with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Healthcare Facilities sector.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Medikaloka Hermina 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 Medikaloka Hermina prominent markets.

Shortening product life cycle

– it is one of the major threat that Medikaloka Hermina is facing in Healthcare Facilities sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Stagnating economy with rate increase

– Medikaloka Hermina 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.

Consumer confidence and its impact on Medikaloka Hermina 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 Healthcare Facilities industry and other sectors.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Medikaloka Hermina 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.

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.

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. Medikaloka Hermina needs to understand the core reasons impacting the Healthcare Facilities industry. This will help it in building a better workplace.

Technology acceleration in Forth Industrial Revolution

– Medikaloka Hermina has witnessed rapid integration of technology during Covid-19 in the Healthcare Facilities industry. As one of the leading players in the industry, Medikaloka Hermina needs to keep up with the evolution of technology in the Healthcare Facilities sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.




Weighted SWOT Analysis of Medikaloka Hermina Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Medikaloka Hermina 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 Medikaloka Hermina 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 Medikaloka Hermina 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 Medikaloka Hermina 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 Medikaloka Hermina needs to make to build a sustainable competitive advantage.



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