1-Analysis of the firm’s existing business model
Cantel Medical Corporation produces and distributes innovative infection prevention products. This firm distributes these products to patients and many healthcare institutions. The existing business model of the firm is manufacturing. Being a prominent manufacturer or producer of infection prevention equipment, the company has gained success in the competitive healthcare market effectively. After manufacturing a product, the company sells its products in the US and other direct markets (Cantel Medical Corp, 2015)
a-Articulating the Firm’s Business Model
The current business model of the company is effective. The company purchases raw materials and assembles all products. This business model helps the company create its quality standards. Being the sole manufacturer of this equipment, the firm has complete control over both production and efficiency. The manufacturer business model of this firm is integrated with demand in different healthcare organizations. This business model is suitable for the company, as it supports massive acquisitions. Acquiring the Medical Innovation Group ($79.5 million) is based on new medical equipment manufacturing and innovation as Medical Innovation Group is a device manufacturing company, so this acquisition is based on manufacturing of devices/equipments (Medivators.com, 2015).
b-Explicating the value, the business model is designed to capture
The manufacturing business model is in the limelight. It assists the company to create value for its clients. For Instance, due to a unique standard regarding the quality, the firm is looking to differentiate its product line. Due to extraordinary features in products such as Infection Prevention, compliance, water purification, and filtration, the firm has positioned better in the minds of customers. Moreover, acquiring the endoscope storage and transport manufacturer of the United Kingdom is a big achievement for the company. The purpose is to accelerate manufacturing and come up with leading infection prevention protocols (Densford, 2015).
2-SWOT Analysis
a-SWOT Elaboration
i-Articulation of SWOT Analysis
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Strengths
It is a fact that the company contains a big product line, which is to be provided to different healthcare providers. It is the biggest strength of the company, as it can meet the needs of the medical health care provider in no time as compared to other equipment providers. Cantel Medical Corporation depicts the powerful brand image, as it helps people save their lives. Furthermore, the firm is financially capable of expanding the business due to big financial capital (Investor’s Business Daily, 2017)
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Weakness
The biggest weakness of the company is the lack of advertising and promotions. Comparatively, the company lacks promotions that usually create hurdles in the sales process. The price of these medical products is high that is also a prominent weakness of this firm. Due to high prices of products, health care providers have increased the cost of the healthcare process.
ii-Corroborating the OT
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Opportunities
Now, in this contemporary business, it is a great opportunity for the company to expand the business outside the United States of America. The company has to utilize its financial resources to make a difference in different healthcare markets and increase its revenues, which can be used in further product expansion (Motley Fool Staff, 2017). Moreover, the customer range of the company can also be increased by indicating the penetration pricing strategy. Interestingly, low prices of infection prevention products can be demonstrated in different advertisements that can lead towards higher sales volumes. Thus, these are some key opportunities that must be utilized effectively to get an edge over other competitor.
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Threats
The competition is increasing in the healthcare market. Different health care providers are also producing this equipment to save the cost of health care. It seems a big threat to the company. Trends in healthcare processes are also changing, and it seems a big threat to keep its sales prices stable. New arrivals in the medical industry are differentiating and imitating these products and offering at the lowest prices. Some thoughtful strategic considerations must be executed to eliminate these threats (Holtzman, Gorkhover, & Ganz, 2015).
iii-Sufficient analysis of the results of the SWOT Analysis
Well, based on SWOT analysis, different insights can be derived from the company management. Interestingly, these insights are to be used to make strategies for further improvements. Business expansion in different countries is a great opportunity. However, it is triggered by the quality and standard, which is the biggest strength of the company. The need for the better marketing strategy through integrated marketing communication is emerging, as it is the best option for the company to interact with customers and streamline the value of these infection prevention products. Marketing intelligence in the healthcare market is needed to tackle all threats effectively. However, if the company integrates with some key opportunities, the growth rate can be doubled, and the expected figure is 20.21% (Baughman, 2017)
b-Internal Factor Evaluation (IFE) Matrix
The internal factor evaluation matrix indicates the strengths and weaknesses of the company along with the weight, rating and weighted scores. It helps the company streamline its top strengths and weakness, and based on the data, make key decisions.
c-External Factor Evaluation (EFE) Matrix
The external factor evaluation matrix streamlines top opportunities and threats. Through the weighted score of these opportunities and threats, the company can come up with some exclusive external business strategies. Threats are also to be evaluated by the rating and weighted score, as the company can pick up the top threat to make the decision accordingly.
d-SWOT Bivariate Strategy Matrix
Depending on this strategic tool, diversification strategies for Cantel Medical Corporation have been described. Combining several elements of this strategic tool is a good move to obtain better business initiatives.
3-BCG Matrix
In the appendix, the BCG matrix depicts the actual mare share that the Cantel Medical Corporation contains in the industry. It visualizes the current business situation of the company.
a-Developing a thorough matrix by SBU and analysis
In this analysis, the firm’s business situation has been examined through evaluating its competitors. Rating and weighted scores are also used in this analysis that assists in comparing the company with the top rivals in the industry. It is an effective tool to examine the business situation and make decisions.
References
Baughman, L. (2017, October 13). What Do Analysts Think About Cantel Medical Corp’s (CMD) Future? Retrieved from https://simplywall.st/news/what-do-analysts-think-about-cantel-medical-corps-cmd-future/
Cantel Medical Corp. (2015, September 14). Cantel Medical Acquires Medical Innovations Group. Retrieved from https://www.prnewswire.com/news-releases/cantel-medical-acquires-medical-innovations-group-300141900.html
Densford, F. (2015, September 14). Cantel Medical pays $80m for UK ‘scope storage maker Medical Innovations. Retrieved from https://www.massdevice.com/cantel-medical-pays-80m-for-uk-scope-storage-maker-medical-innovations/
Holtzman, Y., Gorkhover, G., & Ganz, M. (2015, January 12). The U.S. Medical Device Industry: Threats. Retrieved from https://www.mddionline.com/us-medical-device-industry-threats
Investor’s Business Daily. (2017, February 10). Cantel Medical Earns Relative Strength Rating Upgrade, Hits Key Benchmark. Retrieved from https://www.investors.com/ibd-data-stories/cantel-medical-earns-relative-strength-rating-upgrade-hits-key-benchmark/
Medivators.com. (2015, September 14). Cantel Medical acquires Medical Innovations Group. Retrieved from http://www.medivators.com/about-medivators/news/cantel-medical-acquires-medical-innovations-group
Motley Fool Staff. (2017, December 8). Cantel Medical (CMD) Q1 2018 Earnings Conference Call Transcript. Retrieved from https://www.fool.com/earnings/call-transcripts/2017/12/08/cantel-medical-cmd-q1-2018-earnings-conference-cal.aspx
Appendix:
IFE:
| Strengths | Weight | Rating | Weighted Score | |
| 1 | Big Product Line | 0.05 | 3 | 0.15 |
| 2 | Various Healthcare Clientele | 0.05 | 4 | 0.20 |
| 3 | Satisfies the need of Medical Healthcare providers | 0.05 | 3 | 0.15 |
| 4 | Competitive Edge | 0.05 | 3 | 0.15 |
| 5 | Powerful Brand Image | 0.05 | 3 | 0.15 |
| 6 | Help save lives of people | 0.05 | 4 | 0.20 |
| 7 | Strong Good Will | 0.05 | 4 | 0.20 |
| 8 | Financially Strong | 0.05 | 4 | 0.20 |
| 9 | Ability for Expansion in Business | 0.05 | 3 | 0.15 |
| 10 | Differentiation Strategy | 0.05 | 3 | 0.15 |
| Weaknesses | Weight | Rating | Weighted Score | |
| 1 | Lack of Promotions | 0.05 | 1 | 0.05 |
| 2 | Ineffective marketing strategy | 0.05 | 1 | 0.05 |
| 3 | Sales Limited due to lack of promotion | 0.05 | 1 | 0.05 |
| 4 | High prices of Products | 0.05 | 1 | 0.05 |
| 5 | Costly healthcare process | 0.05 | 1 | 0.05 |
| 6 | No Expansion done | 0.05 | 1 | 0.05 |
| 7 | Poor Price Competitiveness | 0.05 | 1 | 0.05 |
| 8 | lack of New Products | 0.05 | 2 | 0.10 |
| 9 | High cost structure of operating | 0.05 | 1 | 0.05 |
| 10 | No international activity | 0.05 | 1 | 0.05 |
| Total IFE Score | 1.00 | 2.25 |
EFE:
| Opportunities | Weight | Rating | Weighted Score | |
| 1 | International Opportunities | 0.05 | 1 | 0.05 |
| 2 | Strong financials | 0.05 | 3 | 0.15 |
| 3 | Revenue growth | 0.05 | 2 | 0.1 |
| 4 | Market growth opportunity | 0.05 | 2 | 0.1 |
| 5 | Product expansion | 0.05 | 2 | 0.1 |
| 6 | Penetration Pricing strategy | 0.05 | 1 | 0.05 |
| 7 | Low Prices of Prevention products | 0.05 | 1 | 0.05 |
| 8 | Strong Marketing strategy | 0.05 | 1 | 0.05 |
| 9 | Advertisements in TVC and Print media | 0.05 | 1 | 0.05 |
| 10 | Social Media | 0.05 | 1 | 0.05 |
| Threats | Weight | Rating | Weighted Score | |
| 1 | Competitive Landscape | 0.05 | 3 | 0.15 |
| 2 | high cost of equipment | 0.05 | 2 | 0.10 |
| 3 | High costs of healthcare process | 0.05 | 2 | 0.10 |
| 4 | New Trends | 0.05 | 2 | 0.10 |
| 5 | Non stable Sales Price | 0.05 | 2 | 0.10 |
| 6 | New Entrants | 0.05 | 2 | 0.10 |
| 7 | Substitutes | 0.05 | 2 | 0.10 |
| 8 | Products offered by competitors at lower prices | 0.05 | 1 | 0.05 |
| 9 | Lack of outreach to market | 0.05 | 1 | 0.05 |
| 10 | lack of experience in international market | 0.05 | 1 | 0.05 |
| Total EFE Score | 1.00 | 1.65 |
SWOT Bivariate:
| SO Strategies | |||||||||
| 1 | Need for the better marketing strategy through integrated marketing communication | ||||||||
| 2 | Business expansion in different countries should be initiated | ||||||||
| 3 | streamlining of the value of these infection prevention products | ||||||||
| 4 | marketing intelligence in the healthcare market should be developed | ||||||||
| ST Strategies | |||||||||
| 1 | Use of differentiation strategy for tackling with competition | ||||||||
| 2 | Using of price penetration | ||||||||
| 3 | Expanding product portfolio | ||||||||
| 4 | Not relying on few clients | ||||||||
| WO Strategies | |||||||||
| 1 | effective marketing strategy should be developed | ||||||||
| 2 | Social media platform should be developed | ||||||||
| 3 | Costs should be managed | ||||||||
| 4 | International collaborations should be developed | ||||||||
| WT Strategies | |||||||||
| 1 | Effective quality of products for catering to new entrants | ||||||||
| 2 | Use of Low priced prevention products | ||||||||
| 3 | Increasing the outreach of marketing promotions | ||||||||
| 4 | Consultancy on international collaboration should be received | ||||||||
BCG:
Explanation BCG
| I– Endoscopy/Service Revenues |
| II– Water Purification and Filtration / Capital Equipment Revenues |
| III– Healthcare Disposables/Consumable Revenues |
| IV– Dialysis |
IFE Perceptual Map:
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