Based on various researches at Oak Spring University , Wenzhou Kangning Hospital is operating in a macro-environment that has been destablized by – there is backlash against globalization, wage bills are increasing, increasing transportation and logistics costs, increasing energy prices, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China,
central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Wenzhou Kangning Hospital
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Wenzhou Kangning Hospital can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wenzhou Kangning Hospital, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wenzhou Kangning Hospital 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 Wenzhou Kangning Hospital can be done for the following purposes –
1. Strategic planning of Wenzhou Kangning Hospital
2. Improving business portfolio management of Wenzhou Kangning Hospital
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Healthcare Facilities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Wenzhou Kangning Hospital
Strengths of Wenzhou Kangning Hospital | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wenzhou Kangning Hospital are -
High switching costs
– The high switching costs that Wenzhou Kangning Hospital 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.
Successful track record of launching new products
– Wenzhou Kangning Hospital has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Wenzhou Kangning Hospital 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.
Effective Research and Development (R&D)
– Wenzhou Kangning Hospital has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Wenzhou Kangning Hospital 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.
Training and development
– Wenzhou Kangning Hospital has one of the best training and development program in Healthcare industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– Wenzhou Kangning Hospital has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wenzhou Kangning Hospital to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Wenzhou Kangning Hospital is present in almost all the verticals within the Healthcare Facilities industry. This has provided Wenzhou Kangning Hospital 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.
Operational resilience
– The operational resilience strategy of Wenzhou Kangning Hospital comprises – understanding the underlying the factors in the Healthcare Facilities industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to lead change in Healthcare Facilities
– Wenzhou Kangning Hospital is one of the leading players in the Healthcare Facilities industry in Hong Kong. Over the years it has not only transformed the business landscape in the Healthcare Facilities industry in Hong Kong but also across the existing markets. The ability to lead change has enabled Wenzhou Kangning Hospital in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Wenzhou Kangning Hospital is one of the most innovative firm in Healthcare Facilities sector.
Highly skilled collaborators
– Wenzhou Kangning Hospital 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 Wenzhou Kangning Hospital have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Healthcare Facilities industry
– Wenzhou Kangning Hospital has clearly differentiated products in the market place. This has enabled Wenzhou Kangning Hospital to fetch slight price premium compare to the competitors in the Healthcare Facilities industry. The sustainable margins have also helped Wenzhou Kangning Hospital to invest into research and development (R&D) and innovation.
Organizational Resilience of Wenzhou Kangning Hospital
– The covid-19 pandemic has put organizational resilience at the centre of everthing Wenzhou Kangning Hospital does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses of Wenzhou Kangning Hospital | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Wenzhou Kangning Hospital are -
Ability to respond to the competition
– As the decision making is very deliberative at Wenzhou Kangning Hospital, in the dynamic environment of Healthcare Facilities industry it has struggled to respond to the nimble upstart competition. Wenzhou Kangning Hospital has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee of Wenzhou Kangning Hospital is just above the Healthcare Facilities industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to strategic competitive environment developments
– As Wenzhou Kangning Hospital 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.
Slow decision making process
– As mentioned earlier in the report, Wenzhou Kangning Hospital 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. Wenzhou Kangning Hospital 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 operating costs
– Compare to the competitors, Wenzhou Kangning Hospital 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 Wenzhou Kangning Hospital lucrative customers.
Skills based hiring in Healthcare Facilities industry
– The stress on hiring functional specialists at Wenzhou Kangning Hospital 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.
Aligning sales with marketing
– From the outside it seems that Wenzhou Kangning Hospital 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 Wenzhou Kangning Hospital can leverage the sales team experience to cultivate customer relationships as Wenzhou Kangning Hospital is planning to shift buying processes online.
Lack of clear differentiation of Wenzhou Kangning Hospital products
– To increase the profitability and margins on the products, Wenzhou Kangning Hospital needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wenzhou Kangning Hospital is slow explore the new channels of communication. These new channels of communication can help Wenzhou Kangning Hospital 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 Wenzhou Kangning Hospital supply chain. Even after few cautionary changes, Wenzhou Kangning Hospital is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wenzhou Kangning Hospital vulnerable to further global disruptions in South East Asia.
High dependence on Wenzhou Kangning Hospital ‘s star products
– The top 2 products and services of Wenzhou Kangning Hospital 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 Wenzhou Kangning Hospital has relatively successful track record of launching new products.
Wenzhou Kangning Hospital Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Wenzhou Kangning Hospital are -
Loyalty marketing
– Wenzhou Kangning Hospital 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.
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. Wenzhou Kangning Hospital can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Wenzhou Kangning Hospital can improve the customer journey of consumers in the Healthcare Facilities 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wenzhou Kangning Hospital can use these opportunities to build new business models that can help the communities that Wenzhou Kangning Hospital operates in. Secondly it can use opportunities from government spending in Healthcare Facilities sector.
Creating value in data economy
– The success of analytics program of Wenzhou Kangning Hospital has opened avenues for new revenue streams for the organization in Healthcare Facilities industry. This can help Wenzhou Kangning Hospital to build a more holistic ecosystem for Wenzhou Kangning Hospital products in the Healthcare Facilities industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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. Wenzhou Kangning Hospital 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. Wenzhou Kangning Hospital 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wenzhou Kangning Hospital is facing challenges because of the dominance of functional experts in the organization. Wenzhou Kangning Hospital 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.
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 Wenzhou Kangning Hospital in the Healthcare Facilities industry. Now Wenzhou Kangning Hospital can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wenzhou Kangning Hospital can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Wenzhou Kangning Hospital 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Wenzhou Kangning Hospital 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 Wenzhou Kangning Hospital 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.
Building a culture of innovation
– managers at Wenzhou Kangning Hospital 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.
Threats Wenzhou Kangning Hospital External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Wenzhou Kangning Hospital are -
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. Wenzhou Kangning Hospital 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.
Technology acceleration in Forth Industrial Revolution
– Wenzhou Kangning Hospital has witnessed rapid integration of technology during Covid-19 in the Healthcare Facilities industry. As one of the leading players in the industry, Wenzhou Kangning Hospital 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.
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. Wenzhou Kangning Hospital can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Wenzhou Kangning Hospital 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. Wenzhou Kangning Hospital can take advantage of this fund but it will also bring new competitors in the Healthcare Facilities industry.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Healthcare Facilities industry are lowering. It can presents Wenzhou Kangning Hospital 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, Wenzhou Kangning Hospital 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 Wenzhou Kangning Hospital prominent markets.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Wenzhou Kangning Hospital 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.
Increasing wage structure of Wenzhou Kangning Hospital
– 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 Wenzhou Kangning Hospital.
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 Wenzhou Kangning Hospital business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Wenzhou Kangning Hospital 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.
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 Wenzhou Kangning Hospital.
Shortening product life cycle
– it is one of the major threat that Wenzhou Kangning Hospital is facing in Healthcare Facilities sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Wenzhou Kangning Hospital Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Wenzhou Kangning Hospital 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 Wenzhou Kangning Hospital 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 Wenzhou Kangning Hospital 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 Wenzhou Kangning Hospital 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 Wenzhou Kangning Hospital needs to make to build a sustainable competitive advantage.
