HISCO Summary Annual Report

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Student: Reginald Whimbush

Strategy And SWOT Analysis

Strategy HISCO seeks to be the leading provider of high-quality readers to hospitals at affordable prices. To

realize this goal, the company needs to develop strategic objectives. The day-to-day operations of

HISCO will be aligned with these objectives for the company to realize a sustainable competitive

advantage. Redex and Matex are offering similar products to HISCO and this creates a need for

value creation through differentiation. HISCO’s performance in the market is highly influenced by

engineering quality, quality of labor, prices, and marketing and advertising practices.

HISCO needs to make quality parts of its organizational culture. Other than implementing a quality

management system (QMS) only, HISCO will ensure its entire team is on the same page on what it

means by high-quality readers. Employees will be part of the development process and will be under

a feedback loop that is connected to production (Bakotic & Rogošic, 2017). As the number of

providers increases in the market, HISCO needs to sustain and improve its focus on quality.

According to (Chen, Liang, & Yao, 2017), there is a correlation between quality and profit. High-

quality products that meet customers’ needs have the potential to offer higher profits as compared to

low-quality products. HISCO needs to improve its return on investment at any given market share.

HISCO will work towards fewer defects in the manufacturing process and on the final products.

When HISCO’s readers fail in hospitals, there is a risk of high maintenance costs and a loss of

market share. HISCO will work on improving its reader’s performance, features, and aesthetics as

the product’s lifecycle continue to advance. These gradual improvements are expected to result in a

larger market share through improved sales.

HISCO needs to minimize manufacturing costs as it works on balancing its manufacturing capacity

and market outreach. The reduction of operation or production costs will be supported by

improvements in sales and marketing efforts. HISCO will break down its value chain for easier cost

evaluation. High priority will be placed on customers because they are the main sources of income.

HISCO will work on sustaining efforts geared towards maintaining high customer satisfaction.

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Student: Reginald Whimbush

Aggressive customer service and reduced operation or production costs will enable HISCO to create

value and gain a competitive advantage in the market.

SWOT Analysis

Strengths 1.High manufacturing capacity. HISCO has invested in its manufacturing capacity to the point it can

manufacture more readers that it can sell.

2.Excellent business environment. HISCO is operating in a business environment where there are

opportunities and the completion to spur growth.

3.High-quality products. HISCO’s engineering capacity has enabled the company to manufacture

readers of high quality in this initial phase of the product lifecycle.

Weaknesses 1.Excessive manufacturing capacity. HISCO is facing challenges sustaining its high manufacturing

capacity under the current limited market penetration.

2.Limited fiscal resources for investment. HISCO recorded losses of $130,000 and used up all its

cash reserves or cash-at-hand while to sustain its manufacturing capacity.

3.Limited marketing skills. HISCO has a good quality product but companies such as Matex

outperform in marketing their products in the market.

Opportunities 1.Partnerships with hospitals. HISCO has an opportunity to partner with key hospitals to help

improve its feedback loop.

2.High potential in the market. Hospitals are looking towards having nurses and physicians spend

more time on patient care activities. HISCO has an opportunity to improve its sales by improving

the quality of care.

Threats 1.Aggressive competitors. HICO is facing aggressive competition from Redex and Matex for the

hospital market.

2.Similar products in the market. The aggressive competition has enabled HISCO’s competitors to

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Student: Reginald Whimbush

offer similar products to HISCO’s readers.

3.Limited credit line. HISCO has exhausted its credit line and this threatens its ability to invest

towards offering high-quality products at attractive prices.