Edison Schools, Inc.: From the Candle to the Light Bulb? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Edison Schools, Inc.: From the Candle to the Light Bulb?
Edison Schools, Inc., a pioneer in the for-profit management of public schools, demonstrates the challenges and opportunities related to private sector involvement in the delivery of a public good. Follows the organization from its start-up through its initial public offering and, eventually, through its decision to execute a management buy-out to exit the public market. Explores at the corporate level the tension between Edison's effort to generate profits while achieving excellent educational outcomes. Provides brief descriptions of the company's experience in three specific markets: Boston, San Francisco, and Philadelphia.
Swot Analysis of "Edison Schools, Inc.: From the Candle to the Light Bulb?" written by Stacey Childress, Caroline King includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Edison Schools facing as an external strategic factors. Some of the topics covered in Edison Schools, Inc.: From the Candle to the Light Bulb? case study are - Strategic Management Strategies, Financial management, Social enterprise and Organizational Development.
Some of the macro environment factors that can be used to understand the Edison Schools, Inc.: From the Candle to the Light Bulb? casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, technology disruption, there is backlash against globalization, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices,
competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Edison Schools, Inc.: From the Candle to the Light Bulb?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Edison Schools, Inc.: From the Candle to the Light Bulb? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Edison Schools, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Edison Schools 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 Edison Schools, Inc.: From the Candle to the Light Bulb? can be done for the following purposes –
1. Strategic planning using facts provided in Edison Schools, Inc.: From the Candle to the Light Bulb? case study
2. Improving business portfolio management of Edison Schools
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 Edison Schools
Strengths Edison Schools, Inc.: From the Candle to the Light Bulb? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Edison Schools in Edison Schools, Inc.: From the Candle to the Light Bulb? Harvard Business Review case study are -
Successful track record of launching new products
– Edison Schools has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Edison Schools 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.
Learning organization
- Edison Schools 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 Edison Schools is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Edison Schools, Inc.: From the Candle to the Light Bulb? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Edison Schools is present in almost all the verticals within the industry. This has provided firm in Edison Schools, Inc.: From the Candle to the Light Bulb? 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 Edison Schools 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.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Edison Schools digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Edison Schools 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.
Cross disciplinary teams
– Horizontal connected teams at the Edison Schools 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.
Highly skilled collaborators
– Edison Schools 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 Edison Schools, Inc.: From the Candle to the Light Bulb? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Edison Schools is one of the leading recruiters in the industry. Managers in the Edison Schools, Inc.: From the Candle to the Light Bulb? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Edison Schools, Inc.: From the Candle to the Light Bulb? 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.
Ability to lead change in Organizational Development field
– Edison Schools 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 Edison Schools in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Edison Schools has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Edison Schools, Inc.: From the Candle to the Light Bulb? 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.
Low bargaining power of suppliers
– Suppliers of Edison Schools in the sector have low bargaining power. Edison Schools, Inc.: From the Candle to the Light Bulb? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Edison Schools to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Edison Schools, Inc.: From the Candle to the Light Bulb? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Edison Schools, Inc.: From the Candle to the Light Bulb? are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Edison Schools, Inc.: From the Candle to the Light Bulb?, in the dynamic environment Edison Schools has struggled to respond to the nimble upstart competition. Edison Schools has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Edison Schools is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Edison Schools, Inc.: From the Candle to the Light Bulb? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Edison Schools has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Edison Schools, Inc.: From the Candle to the Light Bulb?, it seems that the employees of Edison Schools 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.
Increasing silos among functional specialists
– The organizational structure of Edison Schools is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Edison Schools needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Edison Schools to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Edison Schools, Inc.: From the Candle to the Light Bulb?, 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.
Aligning sales with marketing
– It come across in the case study Edison Schools, Inc.: From the Candle to the Light Bulb? 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 Edison Schools, Inc.: From the Candle to the Light Bulb? can leverage the sales team experience to cultivate customer relationships as Edison Schools is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Edison Schools 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Edison Schools, Inc.: From the Candle to the Light Bulb? 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 Edison Schools 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Edison Schools 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. Edison Schools 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Edison Schools, Inc.: From the Candle to the Light Bulb? 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 Edison Schools has relatively successful track record of launching new products.
Opportunities Edison Schools, Inc.: From the Candle to the Light Bulb? | 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 Edison Schools, Inc.: From the Candle to the Light Bulb? are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Edison Schools can use these opportunities to build new business models that can help the communities that Edison Schools 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 Edison Schools has opened avenues for new revenue streams for the organization in the industry. This can help Edison Schools to build a more holistic ecosystem as suggested in the Edison Schools, Inc.: From the Candle to the Light Bulb? case study. Edison Schools can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Edison Schools 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.
Better consumer reach
– The expansion of the 5G network will help Edison Schools to increase its market reach. Edison Schools 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.
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. Edison Schools can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Edison Schools 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.
Using analytics as competitive advantage
– Edison Schools 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 Edison Schools, Inc.: From the Candle to the Light Bulb? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Edison Schools to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Edison Schools 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. Edison Schools 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.
Manufacturing automation
– Edison Schools 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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Edison Schools to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Edison Schools 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, Edison Schools, Inc.: From the Candle to the Light Bulb?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Edison Schools 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Edison Schools 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 Edison Schools, Inc.: From the Candle to the Light Bulb? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Edison Schools, Inc.: From the Candle to the Light Bulb? are -
Shortening product life cycle
– it is one of the major threat that Edison Schools is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Edison Schools 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.
Stagnating economy with rate increase
– Edison Schools 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.
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.
Increasing wage structure of Edison Schools
– 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 Edison Schools.
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. Edison Schools needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
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. Edison Schools can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Edison Schools in the Organizational Development sector and impact the bottomline of the organization.
Consumer confidence and its impact on Edison Schools 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Edison Schools, Inc.: From the Candle to the Light Bulb?, Edison Schools 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Edison Schools 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 Edison Schools, Inc.: From the Candle to the Light Bulb? .
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 Edison Schools business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Edison Schools, Inc.: From the Candle to the Light Bulb? 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 Edison Schools, Inc.: From the Candle to the Light Bulb? 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 Edison Schools, Inc.: From the Candle to the Light Bulb? 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 Edison Schools, Inc.: From the Candle to the Light Bulb? 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 Edison Schools, Inc.: From the Candle to the Light Bulb? 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 Edison Schools needs to make to build a sustainable competitive advantage.
