Accuray Inc (ARAY), a corporation specialized in dealing with radiation therapy and radio surgery, has been described by business analysts as one of the greatest beneficiaries of technology (Accuray, 2012). Technology, which is a key factor of the external environment of all corporations, has given Accuray Inc an upper hand both internally and externally. From the internal sense, the organization has used technology to come up with devices that give it considerable competitive advantage in the industry. Arguably, the cyberknife and tomotherapy are technologies that are synonymous with Accuray Inc. Embracing such technology has enabled the organization possess that which the competitors do not possess. This has worked for the company in helping it acquire high customer loyalty and large market share. This paper endeavors to describe the external and internal environmental analysis of the Accuray Company.
Talking of company analysis, the external environment concerns itself with opportunities and threats. On the contrary, the internal environment concerns itself with strengths and weaknesses. A company, which has more strengths than weaknesses and can identify more opportunities that can give it a competitive advantage, is bound to be a good performer (Abraham, 2012). Typically, a corporation will use its strengths to conquer its weaknesses. The same strengths will enable the company to identify opportunities. Similarly, the strength of a company will give it the ability to go a notch higher in relation to the position in the market. Essentially, therefore, the internal strengths of a company are a significant determinant of the long term direction of the organization as a going concern. Accuray Inc has technology as both strength and opportunity.
In the context of Accuray Inc, technology is strength in the sense that it has facilitated the invention of such novel ideas as cyberknife and tomotherapy (Accuray, 2012). These have given the company a competitive advantage since, apparently, the competitors do not have such inventions. The 2011 reports of the company indicate that, since the discovery of the two ideas, the market share of the corporation grew considerably phasing out weak competitors. It is no puzzle then why some of the products of Accuray Inc are situated at the points where competitors were formerly based. From the external sense, technology has enhanced the marketing capabilities of Accuray Inc. This is so because technology has enabled the company use such ideas as social media marketing, as well as, e-commerce and web advertising (Simerson, 2011). Such innovative ideas have enabled the company go an extra mile in gaining market share on the international scene.
The external environment of Accuray Inc is characterized by severe competition from other key players in the industry. Other companies, especially those that have been in the industry long enough pose a serious threat in terms of market share. This is essentially because, having been in the market for a long time, the organizations have gained a considerable share of the market, as well as substantial customer loyalty (Simerson, 2011). Even so, Accuray Inc has successfully handled this by embracing competitive based and all-embracing strategic planning. In straightforward terms, the company has used its strength of all-embracing strategic planning to set long term goals that are in line with the company’s mission and vision. Perhaps the most serious weakness of Accuray Inc is the fact that since its approach to planning is strategic, employee inclusion is difficult. Embracing the needs of all employees is a difficult affair. Failure to include the employees may cause dissatisfaction in the internal environment.
Worth noting is the fact that ambiguous decision making has been identified as a serious internal weakness. Ambiguity is brought in to the picture by the fact that all strategic plans must embrace the mission, vision and overall long term objectives of the firm (Abraham, 2012). Additionally, such decisions must lay central focus on the needs of the employees. All these requirements make the whole decision making process ambiguous and quite complicated. This slows down progress and reduces the efficiency of human resources and effectiveness of the company’s capital. The company’s assets are classified as either human or technological. In this sense, the company is said to be having a strong asset base since all the human resources go through a thorough recruitment process. The recruitment process emphasizes such ideas as technical competence and professional qualifications. The physical assets are procured through a process that gives prominence to technology.
In conclusion, it is rather obvious from the foregoing that Accuray Inc has more strengths than weaknesses. Similarly, the environment provides more opportunities than threats. As with many companies in different industries, technology is both an internal and external factor in Accuray Inc. As an internal factor, technology is strength as it enables the company come up with innovative ideas such as tomotherapy and cyberknife. As an external factor, the technology factor is an opportunity as it enables Accuray Inc to market its products to the world market. This enables the company gain global market share. The key threat posed by the external environment is competition from other long established organizations. The weaknesses of Accuray Inc revolve around their decision making approach. Analysts have described their approach as being ambiguous and one that cannot easily embrace the individual needs of the workforce. Even so, the opportunities and strengths significantly outweigh the weaknesses and threats. This explains why Accuray Inc is a market leader in the industry of innovative treatment solutions.
References
Abraham, S. C. (2012). Strategic planning: a practical guide for competitive success (2nd Ed.). Bingley, U.K: Emerald.
Accuray. (2012.). Company | Accuray. Accuray. Retrieved December 16, 2012, from
Simerson, B. K. (2011). Strategic planning a practical guide to strategy formulation andexecution. Santa Barbara, Calif.: Praeger.
