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 - – increasing transportation and logistics costs, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic ,
banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, 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 -
Highly skilled collaborators
– Giddings Lewis 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) (B) 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 Giddings Lewis in the sector have low bargaining power. Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Giddings Lewis to manage not only supply disruptions but also source products at highly competitive prices.
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.
Strong track record of project management
– Giddings Lewis 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 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.
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.
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.
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.
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.
Innovation driven organization
– Giddings Lewis is one of the most innovative firm in sector. Manager in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Giddings Lewis has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
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.
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 -
High operating costs
– Compare to the competitors, firm in the HBR case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) 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 Giddings Lewis 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Giddings Lewis 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.
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.
Slow to strategic competitive environment developments
– As Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) HBR case study mentions - Giddings Lewis takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
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 Giddings Lewis supply chain. Even after few cautionary changes mentioned in the HBR case study - Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Giddings Lewis vulnerable to further global disruptions in South East Asia.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B), in the dynamic environment Giddings Lewis has struggled to respond to the nimble upstart competition. Giddings Lewis has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B), 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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Giddings Lewis 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.
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 -
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.
Better consumer reach
– The expansion of the 5G network will help Giddings Lewis to increase its market reach. Giddings Lewis 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Giddings Lewis can use these opportunities to build new business models that can help the communities that Giddings Lewis operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Using analytics as competitive advantage
– Giddings Lewis has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Giddings Lewis to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
Developing new processes and practices
– Giddings Lewis 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.
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.
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.
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.
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.
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.
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 .
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Giddings Lewis can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Giddings Lewis 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.
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.
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.
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.
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.
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.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Giddings Lewis business can come under increasing regulations regarding data privacy, data security, etc.
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.
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) .
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.
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.
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.
