SWOT Analysis Use in the Healthcare Market, Essay Example

When conducting a market analysis, analysts say that the market one needs to look at is the potential market, not the actual market served.  The reason why this is important is because it allows companies to assess how they will perform in potential markets and what probability they have at entry into a new market or taking over new market share. SWOT analysis is one of the most effective ways of identifying the key strengths,  weaknesses, opportunities and threats associated with a company’s business model, infrastructure and other vital aspects of performance.  SWOT analysis breaks down company performance into strategic factors that allow companies to protect themselves against threats and take advantage of opportunities. While SWOT analysis is usually applied within the private sector, health leaders in the public sector can utilize SWOT analysis to carve a sustainable niche in the healthcare market. The following will take a deeper look at how this is possible.  

In their study assessing the use of SWOT analysis in the healthcare sector, researchers noted that “to be suitable for the health care sector the SWOT-analysis has to be rethought and restructured by incorporating the characteristics of the sector but keeping the possibility for rational analysis by also using empirical data. In this final part of the article we like to present an alternative model, based on the foregoing analysis” (van Wijngaarden,  Scholten, & van Wijk, 2012). The authors suggest that the revised SWOT-analysis for the health care sector, in order to best ensure new health initiatives have lasting and valued success, they need to be founded on three pillars: “stakeholder expectations, resources, and contextual developments”  (van Wijngaarden,  Scholten, & van Wijk, 2012). The table below demonstrates the revised SWOT analysis diagram utilizing these pillars specifically for the healthcare sector.

van Wijngaarden,  Scholten, & van Wijk, (2012)

The above revised SWOT analysis, specifically designed for the healthcare industry, demonstrates how trends, network developments, and resources like capabilities, people, and means of finance can be measured to assess the true market opportunities for those operating within the healthcare industry. It also shows how public sector operations are slightly different from private sector operations while still applying SWOT analysis format to strategic planning methods. For example, medication errors are common in hospitals, and they tend to happen when  medication is being administered or prescriptions are being transcribed. Poon notesl, “to help prevent such errors, technology has been developed to verify medications by incorporating bar-code verification technology within an electronic medication-administration system (bar-code eMAR)” (Poon et al, 2010). This is an example of a public sector need that requires private sector like strategic analysis to secure the broad adoption and long-term success of it use.

In sum, before a hospital, or eMAR manufacturer could engage in the marketing, distribution, or use of this technology, they would first have to assess the contextual developments, stakeholder expectations, and resources through a SWOT analysis.

References

Poon, E. G., Keohane, C. A., Yoon, C. S., Ditmore, M., Bane, A., Levtzion-Korach, O., Moniz, T., Rothschild, Kachalia, Hayes, Churchill, Lipsitz, Whittemore, Bates, Gandhi. (2010). Effect of bar-code technology on the safety of medication administration. The New England Journal of Medicine.

van Wijngaarden, J. D., Scholten, G. R., & van Wijk, K. P. (2012). Strategic analysis for health care organizations: the suitability of the SWOT?analysis. The International journal of     health planning and management, 27(1), 34-49.