In order to follow with new technologies and go with the world at the same pace, the organizations, especially those that represent the healthcare case, should continually implement various adjustments in order to function optimally (Christiansen, 2002). There are diverse techniques that can be applied for determination of necessary adjustments. Therefore, SWOT analysis is one of those essential elements, which according to Harrison (2010), is an organizations internal strengths and weaknesses assessment, its improvement opportunities and the external environment threats.
Kahveci and Meads (2008) state that the usage of this type of analysis is significant in various areas; however, the healthcare industry cannot boast of its wide application. This essay is an attempt to conduct SWOT analysis for the Philips Healthcare organization, the mission of which is to improve the life of people by using meaningful innovations.
As a rule, various experts that are able to assess the organization critically perform SWOT analysis. Those experts are the senior leaders representatives, members of the board, medical staff and other employees, technical experts, patients, and community leaders. The assessment is the utilization of rates, various outcome measures, statistics on patient satisfaction and various organizational performance indicators. Moreover, high attention is also paid to the financial status of the organization. An expert panel opinion of the SWOT analysis conclusions are usually based on the explored facts and data.
The essence of the process of the formulation of organizations strategy is usually described within the frames of SWOT analysis. It can also be the assessment of internal strengths and weaknesses of the organization that are combined with the review of environmental opportunities and threats. However, according to Young and Ballarin (2006), a SWOT analysis can never consider real strengths, weaknesses, opportunities or threats as the scholars are convinced they are unknown. For the aforementioned reason, the senior management is able only to focus mainly on perceived indicators through their own perspectives, which help to influence at least some of the information on strategic decision-making process and incorporate the ability of senior management to see the real organizations SWOT.
The Philips Healthcare SWOT analysis is arranged in the table (Table 1) demonstrates the companys four characteristics based on the information regarding the companys history, vision and mission. In fact, brand position, products lines and target market are taken into account for this analysis.
- Financial stability;
- Environment and healthcare sustainability;
- Strong brand recognition;
- Marketing innovation;
- Local Partnership;
- Customer services;
- Advancement in medical technology: ultrasound, MRI;
- Expertise in recruitment and education - Orientation on innovation 8% of sales devoted back for development and research - Geographical location: operates in sixty countries having sales in over a hundred ones; - Products diversity;
- Systems of diagnostic imaging;
- Patient care and clinical informatics;
- Home healthcare; - Refurbished medical equipment for financial strain reduction in healthcare organizations.
- Commitment to too many product lines;
- Spread of resources to small lines of products provoking suffering of quality of some services and products.
- Reform of the healthcare system;
- Emerging market;
- Growth of GDP;
- Strategy on inorganic product development;
- Development of healthcare products emphasizing on patient education;
- Development of electronic medical record;
- Constant high innovations competition;
- Requirements of the local product;
- Increased healthcare costs result in hesitations to buy expensive equipment;
Table 1. SWOT Analysis of Philips Healthcare.
As we see, despite the fact of constant high competition in the innovations sphere, Philips Healthcare still has more strengths and opportunities. However, in order to stay further on the market and develop successfully, the company needs to reduce its weaknesses and threats. Moreover, it should pay significant attention to the product lines choice and the prices it sets on the market, and those are one of the vital issues in order to stay in line of the leaders and generally prosper in perspective.
The analysis demonstrates that in order to avoid significant gaps in healthcare, which can cause inaccurate patients assessments or even provide the wrong types of care, there are certain conditions that are needed to be considered to reach good clinical outcomes. First, there is the need to work accurately on further development of knowledge and motivation of the personnel through their research programs. Second, there should be constant access to information and other scientific resources, variations in patient education and culture. Third, there should be a constant work done to avoid system barriers that may limit the work of the team on both national and international level.
It is also significant to note that the gaps can also exist between the expectation of public regarding high-quality care and the care they actually receive. Thus, to avoid low-quality care, Philips Healthcare should continue developing the orientation on the customer, consider its prices and generally, work on its strong reliability and communication skills.