FII Hospital da Crianca (HCRI11) SWOT Analysis / TOWS Matrix / MBA Resources
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Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for FII Hospital da Crianca (Brazil)
Based on various researches at Oak Spring University , FII Hospital da Crianca is operating in a macro-environment that has been destablized by – digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs,
technology disruption, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of FII Hospital da Crianca
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that FII Hospital da Crianca can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the FII Hospital da Crianca, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which FII Hospital da Crianca 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 FII Hospital da Crianca can be done for the following purposes –
1. Strategic planning of FII Hospital da Crianca
2. Improving business portfolio management of FII Hospital da Crianca
3. Assessing feasibility of the new initiative in Brazil
4. Making a NA sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of FII Hospital da Crianca
Strengths of FII Hospital da Crianca | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of FII Hospital da Crianca are -
Successful track record of launching new products
– FII Hospital da Crianca has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. FII Hospital da Crianca 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.
Sustainable margins compare to other players in NA industry
– FII Hospital da Crianca has clearly differentiated products in the market place. This has enabled FII Hospital da Crianca to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped FII Hospital da Crianca to invest into research and development (R&D) and innovation.
Strong track record of project management in the NA industry
– FII Hospital da Crianca is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the FII Hospital da Crianca 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.
Digital Transformation in NA industry
- digital transformation varies from industry to industry. For FII Hospital da Crianca digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. FII Hospital da Crianca 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
– FII Hospital da Crianca has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled FII Hospital da Crianca to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of FII Hospital da Crianca in NA industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– FII Hospital da Crianca is one of the leading players in the NA industry in Brazil. It is in a position to attract the best talent available in Brazil. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– FII Hospital da Crianca has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – FII Hospital da Crianca staying ahead in the NA industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– FII Hospital da Crianca is present in almost all the verticals within the NA industry. This has provided FII Hospital da Crianca 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.
Learning organization
- FII Hospital da Crianca 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 FII Hospital da Crianca is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at FII Hospital da Crianca emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of FII Hospital da Crianca in the NA sector have low bargaining power. FII Hospital da Crianca has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps FII Hospital da Crianca to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of FII Hospital da Crianca | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of FII Hospital da Crianca are -
High operating costs
– Compare to the competitors, FII Hospital da Crianca has high operating costs in the NA industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract FII Hospital da Crianca lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the NA industry, FII Hospital da Crianca 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.
Low market penetration in new markets
– Outside its home market of Brazil, FII Hospital da Crianca needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though FII Hospital da Crianca has some of the most successful models in the NA industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. FII Hospital da Crianca should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– From the outside it seems that FII Hospital da Crianca needs to have more collaboration between its sales team and marketing team. Sales professionals in the NA industry have deep experience in developing customer relationships. Marketing department at FII Hospital da Crianca can leverage the sales team experience to cultivate customer relationships as FII Hospital da Crianca is planning to shift buying processes online.
Employees’ less understanding of FII Hospital da Crianca strategy
– From the outside it seems that the employees of FII Hospital da Crianca 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.
High cash cycle compare to competitors
FII Hospital da Crianca has a high cash cycle compare to other players in the NA industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Interest costs
– Compare to the competition, FII Hospital da Crianca 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.
High dependence on FII Hospital da Crianca ‘s star products
– The top 2 products and services of FII Hospital da Crianca still accounts for major business revenue. This dependence on star products in NA industry has resulted into insufficient focus on developing new products, even though FII Hospital da Crianca has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of FII Hospital da Crianca is dominated by functional specialists. It is not different from other players in the NA industry, but FII Hospital da Crianca needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help FII Hospital da Crianca to focus more on services in the NA industry 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, FII Hospital da Crianca is slow explore the new channels of communication. These new channels of communication can help FII Hospital da Crianca to provide better information regarding NA products and services. It can also build an online community to further reach out to potential customers.
FII Hospital da Crianca Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of FII Hospital da Crianca are -
Developing new processes and practices
– FII Hospital da Crianca can develop new processes and procedures in NA 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, FII Hospital da Crianca 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 FII Hospital da Crianca to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects FII Hospital da Crianca can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– FII Hospital da Crianca has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in NA sector. This continuous investment in analytics has enabled FII Hospital da Crianca to build a competitive advantage using analytics. The analytics driven competitive advantage can help FII Hospital da Crianca to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, FII Hospital da Crianca is facing challenges because of the dominance of functional experts in the organization. FII Hospital da Crianca can utilize new technology in the field of NA industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, FII Hospital da Crianca 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for FII Hospital da Crianca in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the NA industry, and it will provide faster access to the consumers.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the NA industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. FII Hospital da Crianca 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. FII Hospital da Crianca 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.
Manufacturing automation
– FII Hospital da Crianca can use the latest technology developments to improve its manufacturing and designing process in NA 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.
Learning at scale
– Online learning technologies has now opened space for FII Hospital da Crianca 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.
Loyalty marketing
– FII Hospital da Crianca 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, FII Hospital da Crianca can use these opportunities to build new business models that can help the communities that FII Hospital da Crianca operates in. Secondly it can use opportunities from government spending in NA sector.
Better consumer reach
– The expansion of the 5G network will help FII Hospital da Crianca to increase its market reach. FII Hospital da Crianca 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.
Threats FII Hospital da Crianca External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of FII Hospital da Crianca are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents FII Hospital da Crianca with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the NA sector.
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. FII Hospital da Crianca 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.
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. FII Hospital da Crianca needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.
Consumer confidence and its impact on FII Hospital da Crianca 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 NA industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for FII Hospital da Crianca in NA industry. The NA 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 NA industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. FII Hospital da Crianca can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– FII Hospital da Crianca 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 NA industry regulations.
Shortening product life cycle
– it is one of the major threat that FII Hospital da Crianca is facing in NA sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– FII Hospital da Crianca 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. FII Hospital da Crianca can take advantage of this fund but it will also bring new competitors in the NA industry.
Stagnating economy with rate increase
– FII Hospital da Crianca 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 NA industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, FII Hospital da Crianca may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of NA sector.
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 FII Hospital da Crianca Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at FII Hospital da Crianca 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 FII Hospital da Crianca 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 FII Hospital da Crianca 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 FII Hospital da Crianca 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 FII Hospital da Crianca needs to make to build a sustainable competitive advantage.