Based on various researches at Oak Spring University , mut Messgeraete fuer Medizin is operating in a macro-environment that has been destablized by – wage bills are increasing, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, increasing commodity prices, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion,
digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of mut Messgeraete fuer Medizin
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that mut Messgeraete fuer Medizin can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the mut Messgeraete fuer Medizin, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which mut Messgeraete fuer Medizin 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 mut Messgeraete fuer Medizin can be done for the following purposes –
1. Strategic planning of mut Messgeraete fuer Medizin
2. Improving business portfolio management of mut Messgeraete fuer Medizin
3. Assessing feasibility of the new initiative in Germany
4. Making a Scientific & Technical Instr. sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of mut Messgeraete fuer Medizin
Strengths of mut Messgeraete fuer Medizin | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of mut Messgeraete fuer Medizin are -
Low bargaining power of suppliers
– Suppliers of mut Messgeraete fuer Medizin in the Technology sector have low bargaining power. mut Messgeraete fuer Medizin has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps mut Messgeraete fuer Medizin to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of mut Messgeraete fuer Medizin in Scientific & Technical Instr. industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– mut Messgeraete fuer Medizin is present in almost all the verticals within the Scientific & Technical Instr. industry. This has provided mut Messgeraete fuer Medizin 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.
High switching costs
– The high switching costs that mut Messgeraete fuer Medizin 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.
High brand equity
– mut Messgeraete fuer Medizin has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled mut Messgeraete fuer Medizin to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– mut Messgeraete fuer Medizin has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Scientific & Technical Instr. industry. Secondly the value chain collaborators of mut Messgeraete fuer Medizin have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– mut Messgeraete fuer Medizin has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – mut Messgeraete fuer Medizin staying ahead in the Scientific & Technical Instr. 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 Scientific & Technical Instr. industry
– mut Messgeraete fuer Medizin has clearly differentiated products in the market place. This has enabled mut Messgeraete fuer Medizin to fetch slight price premium compare to the competitors in the Scientific & Technical Instr. industry. The sustainable margins have also helped mut Messgeraete fuer Medizin to invest into research and development (R&D) and innovation.
Learning organization
- mut Messgeraete fuer Medizin 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 mut Messgeraete fuer Medizin is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at mut Messgeraete fuer Medizin emphasize – knowledge, initiative, and innovation.
Organizational Resilience of mut Messgeraete fuer Medizin
– The covid-19 pandemic has put organizational resilience at the centre of everthing mut Messgeraete fuer Medizin 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 Scientific & Technical Instr. industry
– mut Messgeraete fuer Medizin 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 recruit top talent
– mut Messgeraete fuer Medizin is one of the leading players in the Scientific & Technical Instr. industry in Germany. It is in a position to attract the best talent available in Germany. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses of mut Messgeraete fuer Medizin | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of mut Messgeraete fuer Medizin are -
High operating costs
– Compare to the competitors, mut Messgeraete fuer Medizin has high operating costs in the Scientific & Technical Instr. industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract mut Messgeraete fuer Medizin lucrative customers.
High cash cycle compare to competitors
mut Messgeraete fuer Medizin has a high cash cycle compare to other players in the Scientific & Technical Instr. industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Compensation and incentives
– The revenue per employee of mut Messgeraete fuer Medizin is just above the Scientific & Technical Instr. 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.
Increasing silos among functional specialists
– The organizational structure of mut Messgeraete fuer Medizin is dominated by functional specialists. It is not different from other players in the Scientific & Technical Instr. industry, but mut Messgeraete fuer Medizin needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help mut Messgeraete fuer Medizin to focus more on services in the Scientific & Technical Instr. industry rather than just following the product oriented approach.
Lack of clear differentiation of mut Messgeraete fuer Medizin products
– To increase the profitability and margins on the products, mut Messgeraete fuer Medizin needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on mut Messgeraete fuer Medizin ‘s star products
– The top 2 products and services of mut Messgeraete fuer Medizin still accounts for major business revenue. This dependence on star products in Scientific & Technical Instr. industry has resulted into insufficient focus on developing new products, even though mut Messgeraete fuer Medizin has relatively successful track record of launching new products.
Skills based hiring in Scientific & Technical Instr. industry
– The stress on hiring functional specialists at mut Messgeraete fuer Medizin has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Need for greater diversity
– mut Messgeraete fuer Medizin 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 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 mut Messgeraete fuer Medizin supply chain. Even after few cautionary changes, mut Messgeraete fuer Medizin is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left mut Messgeraete fuer Medizin vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, mut Messgeraete fuer Medizin has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to strategic competitive environment developments
– As mut Messgeraete fuer Medizin is one of the leading players in the Scientific & Technical Instr. industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Scientific & Technical Instr. industry in last five years.
mut Messgeraete fuer Medizin Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of mut Messgeraete fuer Medizin are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, mut Messgeraete fuer Medizin 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 mut Messgeraete fuer Medizin to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Use of Bitcoin and other crypto currencies for transactions in Scientific & Technical Instr. industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for mut Messgeraete fuer Medizin in the Scientific & Technical Instr. industry. Now mut Messgeraete fuer Medizin can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– mut Messgeraete fuer Medizin has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Scientific & Technical Instr. sector. This continuous investment in analytics has enabled mut Messgeraete fuer Medizin to build a competitive advantage using analytics. The analytics driven competitive advantage can help mut Messgeraete fuer Medizin to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. mut Messgeraete fuer Medizin can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for mut Messgeraete fuer Medizin 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for mut Messgeraete fuer Medizin 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 mut Messgeraete fuer Medizin to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Scientific & Technical Instr. industry, but it has also influenced the consumer preferences. mut Messgeraete fuer Medizin can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, mut Messgeraete fuer Medizin can use these opportunities to build new business models that can help the communities that mut Messgeraete fuer Medizin operates in. Secondly it can use opportunities from government spending in Scientific & Technical Instr. sector.
Leveraging digital technologies
– mut Messgeraete fuer Medizin 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.
Creating value in data economy
– The success of analytics program of mut Messgeraete fuer Medizin has opened avenues for new revenue streams for the organization in Scientific & Technical Instr. industry. This can help mut Messgeraete fuer Medizin to build a more holistic ecosystem for mut Messgeraete fuer Medizin products in the Scientific & Technical Instr. industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for mut Messgeraete fuer Medizin in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Scientific & Technical Instr. industry, and it will provide faster access to the consumers.
Buying journey improvements
– mut Messgeraete fuer Medizin can improve the customer journey of consumers in the Scientific & Technical Instr. industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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 mut Messgeraete fuer Medizin to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Threats mut Messgeraete fuer Medizin External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of mut Messgeraete fuer Medizin are -
Easy access to finance
– Easy access to finance in Scientific & Technical Instr. industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. mut Messgeraete fuer Medizin can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– mut Messgeraete fuer Medizin 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.
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 mut Messgeraete fuer Medizin.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Scientific & Technical Instr. industry are lowering. It can presents mut Messgeraete fuer Medizin with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Scientific & Technical Instr. sector.
Consumer confidence and its impact on mut Messgeraete fuer Medizin 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 Scientific & Technical Instr. industry and other sectors.
Stagnating economy with rate increase
– mut Messgeraete fuer Medizin 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 Scientific & Technical Instr. 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. mut Messgeraete fuer Medizin needs to understand the core reasons impacting the Scientific & Technical Instr. industry. This will help it in building a better workplace.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, mut Messgeraete fuer Medizin may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Scientific & Technical Instr. sector.
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 mut Messgeraete fuer Medizin in the Scientific & Technical Instr. sector and impact the bottomline of the organization.
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. mut Messgeraete fuer Medizin 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.
Regulatory challenges
– mut Messgeraete fuer Medizin 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 Scientific & Technical Instr. industry regulations.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of mut Messgeraete fuer Medizin business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of mut Messgeraete fuer Medizin Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at mut Messgeraete fuer Medizin 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 mut Messgeraete fuer Medizin 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 mut Messgeraete fuer Medizin 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 mut Messgeraete fuer Medizin 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 mut Messgeraete fuer Medizin needs to make to build a sustainable competitive advantage.