Integral Diagnostics Ltd (IDX) SWOT Analysis / TOWS Matrix / MBA Resources
Healthcare Facilities
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Integral Diagnostics Ltd (Australia)
Based on various researches at Oak Spring University , Integral Diagnostics Ltd is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, there is backlash against globalization, increasing transportation and logistics costs, central banks are concerned over increasing inflation, geopolitical disruptions,
supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Integral Diagnostics Ltd
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Integral Diagnostics Ltd can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Integral Diagnostics Ltd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Integral Diagnostics Ltd 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 Integral Diagnostics Ltd can be done for the following purposes –
1. Strategic planning of Integral Diagnostics Ltd
2. Improving business portfolio management of Integral Diagnostics Ltd
3. Assessing feasibility of the new initiative in Australia
4. Making a Healthcare Facilities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Integral Diagnostics Ltd
Strengths of Integral Diagnostics Ltd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Integral Diagnostics Ltd are -
Organizational Resilience of Integral Diagnostics Ltd
– The covid-19 pandemic has put organizational resilience at the centre of everthing Integral Diagnostics Ltd does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management in the Healthcare Facilities industry
– Integral Diagnostics Ltd is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Healthcare Facilities
– Integral Diagnostics Ltd is one of the leading players in the Healthcare Facilities industry in Australia. Over the years it has not only transformed the business landscape in the Healthcare Facilities industry in Australia but also across the existing markets. The ability to lead change has enabled Integral Diagnostics Ltd in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Healthcare Facilities industry
– Integral Diagnostics Ltd has clearly differentiated products in the market place. This has enabled Integral Diagnostics Ltd to fetch slight price premium compare to the competitors in the Healthcare Facilities industry. The sustainable margins have also helped Integral Diagnostics Ltd to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Integral Diagnostics Ltd 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 Integral Diagnostics Ltd have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Integral Diagnostics Ltd has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Integral Diagnostics Ltd to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Integral Diagnostics Ltd has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Integral Diagnostics Ltd 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.
Successful track record of launching new products
– Integral Diagnostics Ltd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Integral Diagnostics Ltd 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.
Low bargaining power of suppliers
– Suppliers of Integral Diagnostics Ltd in the Healthcare sector have low bargaining power. Integral Diagnostics Ltd has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Integral Diagnostics Ltd to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Integral Diagnostics Ltd is one of the most innovative firm in Healthcare Facilities sector.
Learning organization
- Integral Diagnostics Ltd 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 Integral Diagnostics Ltd is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Integral Diagnostics Ltd emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Integral Diagnostics Ltd in Healthcare Facilities industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Integral Diagnostics Ltd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Integral Diagnostics Ltd are -
Increasing silos among functional specialists
– The organizational structure of Integral Diagnostics Ltd is dominated by functional specialists. It is not different from other players in the Healthcare Facilities industry, but Integral Diagnostics Ltd needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Integral Diagnostics Ltd to focus more on services in the Healthcare Facilities industry rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, Integral Diagnostics Ltd 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 Integral Diagnostics Ltd lucrative customers.
Interest costs
– Compare to the competition, Integral Diagnostics Ltd 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Integral Diagnostics Ltd is slow explore the new channels of communication. These new channels of communication can help Integral Diagnostics Ltd to provide better information regarding Healthcare Facilities products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Integral Diagnostics Ltd is one of the leading players in the Healthcare Facilities industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Healthcare Facilities industry in last five years.
Compensation and incentives
– The revenue per employee of Integral Diagnostics Ltd 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.
Lack of clear differentiation of Integral Diagnostics Ltd products
– To increase the profitability and margins on the products, Integral Diagnostics Ltd needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Integral Diagnostics Ltd has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High bargaining power of channel partners in Healthcare Facilities industry
– because of the regulatory requirements in Australia, Integral Diagnostics Ltd 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.
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 Integral Diagnostics Ltd supply chain. Even after few cautionary changes, Integral Diagnostics Ltd is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Integral Diagnostics Ltd vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Integral Diagnostics Ltd has a high cash cycle compare to other players in the Healthcare Facilities industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Integral Diagnostics Ltd Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Integral Diagnostics Ltd are -
Better consumer reach
– The expansion of the 5G network will help Integral Diagnostics Ltd to increase its market reach. Integral Diagnostics Ltd 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, Integral Diagnostics Ltd 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Integral Diagnostics Ltd is facing challenges because of the dominance of functional experts in the organization. Integral Diagnostics Ltd 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Integral Diagnostics Ltd can use these opportunities to build new business models that can help the communities that Integral Diagnostics Ltd operates in. Secondly it can use opportunities from government spending in Healthcare Facilities sector.
Building a culture of innovation
– managers at Integral Diagnostics Ltd 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.
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. Integral Diagnostics Ltd 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. Integral Diagnostics Ltd 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.
Leveraging digital technologies
– Integral Diagnostics Ltd 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.
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 Integral Diagnostics Ltd in the Healthcare Facilities industry. Now Integral Diagnostics Ltd can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Integral Diagnostics Ltd 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 Integral Diagnostics Ltd to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Integral Diagnostics Ltd 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Integral Diagnostics Ltd can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Integral Diagnostics Ltd can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Integral Diagnostics Ltd 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 Integral Diagnostics Ltd to build a competitive advantage using analytics. The analytics driven competitive advantage can help Integral Diagnostics Ltd to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Integral Diagnostics Ltd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Integral Diagnostics Ltd are -
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. Integral Diagnostics Ltd can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Integral Diagnostics Ltd 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 Integral Diagnostics Ltd prominent markets.
Technology acceleration in Forth Industrial Revolution
– Integral Diagnostics Ltd has witnessed rapid integration of technology during Covid-19 in the Healthcare Facilities industry. As one of the leading players in the industry, Integral Diagnostics Ltd 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.
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. Integral Diagnostics Ltd 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 Integral Diagnostics Ltd 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.
Increasing wage structure of Integral Diagnostics Ltd
– 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 Integral Diagnostics Ltd.
High dependence on third party suppliers
– Integral Diagnostics Ltd 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.
Environmental challenges
– Integral Diagnostics Ltd 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. Integral Diagnostics Ltd can take advantage of this fund but it will also bring new competitors in the Healthcare Facilities industry.
Stagnating economy with rate increase
– Integral Diagnostics Ltd 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.
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. Integral Diagnostics Ltd needs to understand the core reasons impacting the Healthcare Facilities industry. This will help it in building a better workplace.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Integral Diagnostics Ltd 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.
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 Integral Diagnostics Ltd in the Healthcare Facilities sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Integral Diagnostics Ltd Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Integral Diagnostics Ltd 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 Integral Diagnostics Ltd 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 Integral Diagnostics Ltd 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 Integral Diagnostics Ltd 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 Integral Diagnostics Ltd needs to make to build a sustainable competitive advantage.