Reflect on the strengths, weaknesses, opportunities, and threats associated with the healthcare product or service you have proposed.
Reflect on the costs and potential revenue streams associated with the healthcare product or service you have proposed.
Week 7 Discussion: Healthcare Products
The SWOT analysis is an analysis by which an organization’s products or services’ strengths, weaknesses, opportunities, and threats can be encountered in strategic planning exercises in healthcare systems, hospitals, and business settings (Laksham, 2019, p.342). The SWOT analysis is a systematic, structured way of thinking about and exploring business development areas, vulnerable areas that need development and improvement, and resource deployment.
Strengths, weakness, opportunities, and threats associated with healthcare products
The product strength of the smart weighing scale is that it is scientific and technology-based. The potentially supportive and curative measures of the product are derived scientifically with valid clinical trial evidence. This leads to the treatment quality being focused and evidence-based (Kamath, Brijesh & Mallya, 2018, p.5059). The motivation, compassion, and care of the personnel of the organization is also the strength of the product and service offered. Another major strength of the product is that it is a team-based practice to provide the patient with the product and maintenance of the product is also given at regular intervals by the experts of respective fields. This team includes the technical team for maintenance products, clinicians to provide guidance for the patients, and so on. Another strength is that this product can be provided to people free of cost for both marketing and social work purposes.
On the other hand, the weakness of the product is that it is a modern gadget that may not be easy to use for elderly people. Another weakness is that the product is provided to the patients at their place that’s why continuous monitoring of weight and body mass index measurement depends upon the patient and maintenance at regular intervals also becomes difficult.
Opportunity can be always derived from weaknesses (Benzaghta et al. 2021, p.60). As the product is provided to the patients a basic maintenance guide can also be provided to them with it so that they can use it and fix some basic issues of the product without the help of anyone. A helpline should also be provided to them to guide them about the product and how to use it for patients who are finding it difficult to use.
The threat of this product is other players in the market who can copy the idea and the product as well. To defend this situation the product must be patented (Liang et al. 2020, p.234). It should also be provided to the patients at an affordable price to capture the market.
Cost and Revenue:
The cost is estimated at $75 for a smart digital scale. 80 scales are to be purchased for the start-up. So the cost incurred for purchasing the product is $6000. The estimated maintenance cost per machine per year is $30 and the estimated no of patients in year one is 40. So the maintenance cost for the first year becomes $1200. It is also considered that there is an increase in no of patients by 10 each year. Hence, the cost of maintenance for years 2, 3, 4, and 5 becomes $1500, $1800, $2100, and $2400. Miscellaneous and transportation cost per year is estimated to be $3000 per year. Hence, the total operating cost for five years becomes $12000. So, the total estimated cost for the venture is a sum of the estimated purchase cost and estimated operating cost which is $18000.
The revenues that are generated from the product are estimated as follows. The leasing cost of one smart weighing scale for one year is $150 and the consultation or service charge is about $2880 per year. So, the total revenue that is generated from one machine for one year is $3030.Hence, the total revenue that is generated from the first year is $121200 as the no of the patient is estimated to be 40 for year one. Similarly, the revenue for years 2 and onwards becomes $151500, $181800, $212100, and $242400. So the total estimated revenue from this product and service becomes $909000(Karthik & Prasad 2020, p.99). If the start-up functions on these numbers the return on investment becomes very high which makes the business investable.
Laksham, K. B. (2019). Unmanned aerial vehicle (drones) in public health: A SWOT analysis. Journal of family medicine and primary care, 8(2), 342.
Kamath, M., Brijesh, K., & Mallya, S. V. (2018). Online marketing of herbal medicines issues and concerns: A SWOT analysis. Research Journal of Pharmacy and Technology, 11(11), 5058-5060.
Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), 55-73.
Liang, H., Zheng, J., Wang, Q., & Chen, Y. (2020, November). Research on Development Strategy of “Internet+ Traditional Chinese Medicine” Based on PEST-SWOT Model. In 2020 International Conference on Public Health and Data Science (ICPHDS) (pp. 232-236). IEEE.
Karthik, T. T., & Prasad, T. R. (2020). SWOT (Strength, Weakness, Opportunities and Threats) Analysis of Fast Moving Consumer Goods (FMCG) Industries in India. Shanlax International Journal of Commerce, 8(1), 92-100.