Pyramyd Air: Looking through the Scope of Values SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Pyramyd Air: Looking through the Scope of Values
Pyramyd Air, a small and growing online airgun retailer serving the shooting community, wants to broaden its sustainability practices from its current internal initiatives in order to communicate an even stronger value proposition: sustainability isn't just about recycling and efficiency, it is about a thriving environment leading to more engaged employees and more loyal premium customers. Though the airgun industry is not by its nature built on sustainability principles, as is solar energy for example, Pyramyd Air recognizes that some sustainability practices are vital to its customers' long-term enjoyment of a flourishing outdoor sporting industry. For a company with strong customer relationships, can sustainability strengthen the relationship between employees and customers by building on the inherent industry values of the great outdoors and a sense of community?
Swot Analysis of "Pyramyd Air: Looking through the Scope of Values" written by Chris Laszlo, Katherine Gullett includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pyramyd Airgun facing as an external strategic factors. Some of the topics covered in Pyramyd Air: Looking through the Scope of Values case study are - Strategic Management Strategies, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Pyramyd Air: Looking through the Scope of Values casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption,
central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Pyramyd Air: Looking through the Scope of Values
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pyramyd Air: Looking through the Scope of Values case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pyramyd Airgun, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pyramyd Airgun operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Pyramyd Air: Looking through the Scope of Values can be done for the following purposes –
1. Strategic planning using facts provided in Pyramyd Air: Looking through the Scope of Values case study
2. Improving business portfolio management of Pyramyd Airgun
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Pyramyd Airgun
Strengths Pyramyd Air: Looking through the Scope of Values | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pyramyd Airgun in Pyramyd Air: Looking through the Scope of Values Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Pyramyd Airgun are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Organizational Resilience of Pyramyd Airgun
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Pyramyd Airgun does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Pyramyd Airgun digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pyramyd Airgun has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Highly skilled collaborators
– Pyramyd Airgun has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Pyramyd Air: Looking through the Scope of Values HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Pyramyd Airgun has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pyramyd Airgun has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Innovation driven organization
– Pyramyd Airgun is one of the most innovative firm in sector. Manager in Pyramyd Air: Looking through the Scope of Values Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Pyramyd Airgun has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Low bargaining power of suppliers
– Suppliers of Pyramyd Airgun in the sector have low bargaining power. Pyramyd Air: Looking through the Scope of Values has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pyramyd Airgun to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Pyramyd Airgun has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pyramyd Airgun to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Pyramyd Airgun in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Pyramyd Airgun is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Leadership & Managing People field
– Pyramyd Airgun is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Pyramyd Airgun in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Pyramyd Air: Looking through the Scope of Values | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pyramyd Air: Looking through the Scope of Values are -
Interest costs
– Compare to the competition, Pyramyd Airgun has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Skills based hiring
– The stress on hiring functional specialists at Pyramyd Airgun has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Pyramyd Air: Looking through the Scope of Values, is just above the industry average. Pyramyd Airgun needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Pyramyd Airgun supply chain. Even after few cautionary changes mentioned in the HBR case study - Pyramyd Air: Looking through the Scope of Values, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pyramyd Airgun vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Pyramyd Airgun needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Pyramyd Air: Looking through the Scope of Values, it seems that the employees of Pyramyd Airgun don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Low market penetration in new markets
– Outside its home market of Pyramyd Airgun, firm in the HBR case study Pyramyd Air: Looking through the Scope of Values needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Pyramyd Air: Looking through the Scope of Values that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Pyramyd Air: Looking through the Scope of Values can leverage the sales team experience to cultivate customer relationships as Pyramyd Airgun is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Pyramyd Air: Looking through the Scope of Values, in the dynamic environment Pyramyd Airgun has struggled to respond to the nimble upstart competition. Pyramyd Airgun has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Pyramyd Airgun is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Pyramyd Airgun needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pyramyd Airgun to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Pyramyd Airgun products
– To increase the profitability and margins on the products, Pyramyd Airgun needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Pyramyd Air: Looking through the Scope of Values | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Pyramyd Air: Looking through the Scope of Values are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Pyramyd Airgun can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Pyramyd Air: Looking through the Scope of Values, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Pyramyd Airgun can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pyramyd Airgun can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pyramyd Airgun can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Pyramyd Airgun can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Pyramyd Airgun can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pyramyd Airgun can use these opportunities to build new business models that can help the communities that Pyramyd Airgun operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Buying journey improvements
– Pyramyd Airgun can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Pyramyd Air: Looking through the Scope of Values suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Loyalty marketing
– Pyramyd Airgun has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Leveraging digital technologies
– Pyramyd Airgun can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Developing new processes and practices
– Pyramyd Airgun can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Better consumer reach
– The expansion of the 5G network will help Pyramyd Airgun to increase its market reach. Pyramyd Airgun will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Building a culture of innovation
– managers at Pyramyd Airgun can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Manufacturing automation
– Pyramyd Airgun can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Threats Pyramyd Air: Looking through the Scope of Values External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pyramyd Air: Looking through the Scope of Values are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pyramyd Airgun can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Pyramyd Air: Looking through the Scope of Values .
Regulatory challenges
– Pyramyd Airgun needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Pyramyd Air: Looking through the Scope of Values, Pyramyd Airgun may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Pyramyd Airgun.
High dependence on third party suppliers
– Pyramyd Airgun high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing wage structure of Pyramyd Airgun
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Pyramyd Airgun.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Stagnating economy with rate increase
– Pyramyd Airgun can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pyramyd Airgun with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Pyramyd Airgun needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Environmental challenges
– Pyramyd Airgun needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Pyramyd Airgun can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Pyramyd Airgun in the Leadership & Managing People sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Pyramyd Airgun will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Pyramyd Air: Looking through the Scope of Values Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Pyramyd Air: Looking through the Scope of Values needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Pyramyd Air: Looking through the Scope of Values is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Pyramyd Air: Looking through the Scope of Values is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Pyramyd Air: Looking through the Scope of Values is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Pyramyd Airgun needs to make to build a sustainable competitive advantage.