Swot Analysis of "Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A)" written by Nitin Nohria, Bharat N. Anand, Kyle Barnett includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lewis Gidding facing as an external strategic factors. Some of the topics covered in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) case study are - Strategic Management Strategies, Financial analysis, Mergers & acquisitions and Organizational Development.
Some of the macro environment factors that can be used to understand the Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) casestudy better are - – there is backlash against globalization, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, technology disruption, geopolitical disruptions, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lewis Gidding, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lewis Gidding 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 Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) can be done for the following purposes –
1. Strategic planning using facts provided in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) case study
2. Improving business portfolio management of Lewis Gidding
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Lewis Gidding
Strengths Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lewis Gidding in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) Harvard Business Review case study are -
Successful track record of launching new products
– Lewis Gidding has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lewis Gidding 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.
Operational resilience
– The operational resilience strategy in the Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
High brand equity
– Lewis Gidding has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Lewis Gidding to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Lewis Gidding is present in almost all the verticals within the industry. This has provided firm in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Effective Research and Development (R&D)
– Lewis Gidding has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Lewis Gidding 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 Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Lewis Gidding in the sector have low bargaining power. Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Lewis Gidding to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Lewis Gidding 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.
Learning organization
- Lewis Gidding is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Lewis Gidding is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Lewis Gidding
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Lewis Gidding does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Lewis Gidding digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Lewis Gidding 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.
Innovation driven organization
– Lewis Gidding is one of the most innovative firm in sector. Manager in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) are -
Lack of clear differentiation of Lewis Gidding products
– To increase the profitability and margins on the products, Lewis Gidding needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Lewis Gidding is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Lewis Gidding needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Lewis Gidding to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A), it seems that company is thinking about the frontier risks that can impact Organizational Development strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Capital Spending Reduction
– Even during the low interest decade, Lewis Gidding has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High cash cycle compare to competitors
Lewis Gidding has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High operating costs
– Compare to the competitors, firm in the HBR case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Lewis Gidding 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A), it seems that the employees of Lewis Gidding 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A), is just above the industry average. Lewis Gidding 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lewis Gidding is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) 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 Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) can leverage the sales team experience to cultivate customer relationships as Lewis Gidding is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Lewis Gidding 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.
Opportunities Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) | 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 Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Lewis Gidding is facing challenges because of the dominance of functional experts in the organization. Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Lewis Gidding can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Lewis Gidding in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Loyalty marketing
– Lewis Gidding 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Lewis Gidding can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Lewis Gidding can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Lewis Gidding can use these opportunities to build new business models that can help the communities that Lewis Gidding operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Creating value in data economy
– The success of analytics program of Lewis Gidding has opened avenues for new revenue streams for the organization in the industry. This can help Lewis Gidding to build a more holistic ecosystem as suggested in the Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) case study. Lewis Gidding can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Lewis Gidding 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lewis Gidding to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Lewis Gidding to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Lewis Gidding can develop new processes and procedures in Organizational Development 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 Lewis Gidding to increase its market reach. Lewis Gidding 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.
Manufacturing automation
– Lewis Gidding can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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 Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A), Lewis Gidding may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Increasing wage structure of Lewis Gidding
– 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 Lewis Gidding.
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. Lewis Gidding 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.
Regulatory challenges
– Lewis Gidding 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 Organizational Development industry regulations.
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 Lewis Gidding in the Organizational Development sector and impact the bottomline of the organization.
Consumer confidence and its impact on Lewis Gidding demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology acceleration in Forth Industrial Revolution
– Lewis Gidding has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Lewis Gidding needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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. Lewis Gidding needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Environmental challenges
– Lewis Gidding 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. Lewis Gidding can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
High dependence on third party suppliers
– Lewis Gidding 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Lewis Gidding with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Lewis Gidding 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 Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) .
Weighted SWOT Analysis of Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) 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 Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) 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 Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) 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 Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) 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 Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A) 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 Lewis Gidding needs to make to build a sustainable competitive advantage.
