Swot Analysis of "Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B)" written by Nitin Nohria includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Giddings Lewis facing as an external strategic factors. Some of the topics covered in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) case study are - Strategic Management Strategies, 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) (B) casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, geopolitical disruptions, increasing transportation and logistics costs, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, technology disruption,
challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B)
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) (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Giddings Lewis, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Giddings Lewis 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) (B) can be done for the following purposes –
1. Strategic planning using facts provided in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) case study
2. Improving business portfolio management of Giddings Lewis
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 Giddings Lewis
Strengths Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Giddings Lewis in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) 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 switching costs
– The high switching costs that Giddings Lewis 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.
Ability to recruit top talent
– Giddings Lewis is one of the leading recruiters in the industry. Managers in the Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Giddings Lewis is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Nitin Nohria can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Superior customer experience
– The customer experience strategy of Giddings Lewis in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Giddings Lewis digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Giddings Lewis 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.
Learning organization
- Giddings Lewis 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 Giddings Lewis 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) (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Giddings Lewis has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Giddings Lewis 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.
Cross disciplinary teams
– Horizontal connected teams at the Giddings Lewis 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.
Effective Research and Development (R&D)
– Giddings Lewis 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) (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Giddings Lewis is present in almost all the verticals within the industry. This has provided firm in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) 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.
Ability to lead change in Organizational Development field
– Giddings Lewis 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 Giddings Lewis in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) | 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) (B) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B), is just above the industry average. Giddings Lewis 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 star products
– The top 2 products and services of the firm as mentioned in the Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Giddings Lewis has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Giddings Lewis is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Giddings Lewis needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Giddings Lewis to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Giddings Lewis 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B), it seems that the employees of Giddings Lewis 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.
Products dominated business model
– Even though Giddings Lewis has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Nitin Nohria suggests that, Giddings Lewis is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow decision making process
– As mentioned earlier in the report, Giddings Lewis has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Giddings Lewis even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Giddings Lewis 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) (B) 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) (B) 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) (B) can leverage the sales team experience to cultivate customer relationships as Giddings Lewis is planning to shift buying processes online.
Lack of clear differentiation of Giddings Lewis products
– To increase the profitability and margins on the products, Giddings Lewis needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) | 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) (B) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Giddings Lewis is facing challenges because of the dominance of functional experts in the organization. Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) 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.
Building a culture of innovation
– managers at Giddings Lewis 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 Organizational Development segment.
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. Giddings Lewis 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
– Giddings Lewis 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) (B) 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Giddings Lewis 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Giddings Lewis 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, Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Giddings Lewis has opened avenues for new revenue streams for the organization in the industry. This can help Giddings Lewis to build a more holistic ecosystem as suggested in the Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) case study. Giddings Lewis can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Giddings Lewis can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Giddings Lewis 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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Giddings Lewis in the consumer business. Now Giddings Lewis can target international markets with far fewer capital restrictions requirements than the existing system.
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. Giddings Lewis 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 Giddings Lewis 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.
Leveraging digital technologies
– Giddings Lewis 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.
Threats Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) 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) (B) 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) (B), Giddings Lewis 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 .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth 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. Giddings Lewis 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Giddings Lewis in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing wage structure of Giddings Lewis
– 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 Giddings Lewis.
Environmental challenges
– Giddings Lewis 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. Giddings Lewis can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Giddings Lewis with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Giddings Lewis in the Organizational Development sector and impact the bottomline of the organization.
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. Giddings Lewis needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Giddings Lewis 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) (B) .
High dependence on third party suppliers
– Giddings Lewis 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.
Shortening product life cycle
– it is one of the major threat that Giddings Lewis is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Giddings Lewis has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Giddings Lewis 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.
Weighted SWOT Analysis of Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) 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) (B) 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) (B) 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) (B) 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) (B) 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 Giddings Lewis needs to make to build a sustainable competitive advantage.