Question

In: Operations Management

Perform a SWOT analysis for a new Canadian company producing surgical masks during the COVID-19 pandemic.

Perform a SWOT analysis for a new Canadian company producing surgical masks during the COVID-19 pandemic.

Solutions

Expert Solution

Strengths :

- High barriers to entry : Medical devices and especially surgical masks are a very precise and high-quality and regulated market, clearances, authorisations etc. are all needed in perfect order before production can begin.

- High experience and quality levels needed : zero defects needed, else can be fatal in the current time. Experienced staff is available in Canada presently

- Multi-channel sales : There are likely to be a lot of online/website/mobile app sales due to lockdowns, quarantines etc. negating the need for a brick-and-mortar store which will mean lesser cost as well

- Lower start up risk as this business idea is likely to at least break-even, though the start up cost is high, the risk is low right now due to the high current and expected demand in the next 12 months

- Governments are facilitating faster processing for manufacture of medical supplies due to onslaught of the virus, the required documentation can come through quickly

Weaknesses :

- A lot of competition is already underway with launching similar business due to the global demand

- New transportation and safety requirements and authorisations per the government will need to be taken care of, training for staff

- Uncertainty within the staff/firm will be difficult to control and manage in these stressful times. Daily planning and execution are likely to be more problematic than in normal times.

Opportunities :

- Business can be launched globally wherever transport is possible (governments are making special arrangements for medical supplies), europe is a possible market

- Higher profit margins possible due to worldwide spike in demand, which is likely to last a few months even after the pandemic ends but people remain wary

- Online media most in use due to lockdowns, time to market will be reduced

- Investors will likely be keen to invest in this business, leading to ongoing capital being available at least for the first year

- Retail and wholesale (hospitals, medical centres) options can be deployed simultaneously

- As international transport becomes more and more difficult, north american market will gravitate towards local/near-shore suppliers like us

- Currently Canada is not as overrun as neighbouring countries and can produce and sell products

Threats :

- The pandemic is unpredictable and can cause production to stop in the first few months causing huge losses

- The uncertainity of the next year can also mean that products might not sell as much to individual customers as they become more price-sensitive

- Minor mistakes and manufacture or delays in distribution can cause consumers to switch to other sellers, there will be no buyer loyalty in this time


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