SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet
This case documents how SpaceDisk started out as a provider of free Web-based storage space. When the potential for such subscription and advertising revenues began to look less attractive, and SpaceDisk saw an opportunity in launching a DAP, the company moved rapidly to develop its new service and roll out its infrastructure.
Swot Analysis of "SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet" written by Jill Klein, Jochen Wirtz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Spacedisk Dap facing as an external strategic factors. Some of the topics covered in SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet case study are - Strategic Management Strategies, Internet, Joint ventures and Sales & Marketing.
Some of the macro environment factors that can be used to understand the SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, geopolitical disruptions, increasing energy prices, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion,
technology disruption, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Spacedisk Dap, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Spacedisk Dap 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 SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet can be done for the following purposes –
1. Strategic planning using facts provided in SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet case study
2. Improving business portfolio management of Spacedisk Dap
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Spacedisk Dap
Strengths SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Spacedisk Dap in SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet Harvard Business Review case study are -
Sustainable margins compare to other players in Sales & Marketing industry
– SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet firm has clearly differentiated products in the market place. This has enabled Spacedisk Dap to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Spacedisk Dap to invest into research and development (R&D) and innovation.
Innovation driven organization
– Spacedisk Dap is one of the most innovative firm in sector. Manager in SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Spacedisk Dap in the sector have low bargaining power. SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Spacedisk Dap to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Spacedisk Dap
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Spacedisk Dap does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Spacedisk Dap is one of the leading recruiters in the industry. Managers in the SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Spacedisk Dap in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Spacedisk Dap has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Spacedisk Dap 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
- Spacedisk Dap 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 Spacedisk Dap is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Spacedisk Dap has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet 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.
Cross disciplinary teams
– Horizontal connected teams at the Spacedisk Dap 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.
Ability to lead change in Sales & Marketing field
– Spacedisk Dap 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 Spacedisk Dap in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet 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.
Weaknesses SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet are -
Skills based hiring
– The stress on hiring functional specialists at Spacedisk Dap 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Spacedisk Dap is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Spacedisk Dap supply chain. Even after few cautionary changes mentioned in the HBR case study - SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Spacedisk Dap vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Spacedisk Dap is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Spacedisk Dap needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Spacedisk Dap to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet, in the dynamic environment Spacedisk Dap has struggled to respond to the nimble upstart competition. Spacedisk Dap has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Spacedisk Dap, firm in the HBR case study SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet 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 Spacedisk Dap has relatively successful track record of launching new products.
High cash cycle compare to competitors
Spacedisk Dap 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.
Capital Spending Reduction
– Even during the low interest decade, Spacedisk Dap 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 strategic competitive environment developments
– As SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet HBR case study mentions - Spacedisk Dap 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.
No frontier risks strategy
– After analyzing the HBR case study SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet, it seems that company is thinking about the frontier risks that can impact Sales & Marketing 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.
Opportunities SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet | 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 SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet are -
Building a culture of innovation
– managers at Spacedisk Dap 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 Sales & Marketing segment.
Creating value in data economy
– The success of analytics program of Spacedisk Dap has opened avenues for new revenue streams for the organization in the industry. This can help Spacedisk Dap to build a more holistic ecosystem as suggested in the SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet case study. Spacedisk Dap can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Spacedisk Dap 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Spacedisk Dap 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 Spacedisk Dap to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Spacedisk Dap can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet 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.
Learning at scale
– Online learning technologies has now opened space for Spacedisk Dap to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Spacedisk Dap can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Spacedisk Dap in the consumer business. Now Spacedisk Dap can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Spacedisk Dap to increase its market reach. Spacedisk Dap 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Spacedisk Dap in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Spacedisk Dap 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 SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Spacedisk Dap to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Spacedisk Dap 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Spacedisk Dap 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. Spacedisk Dap 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.
Threats SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Spacedisk Dap in the Sales & Marketing industry. The Sales & Marketing 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.
Regulatory challenges
– Spacedisk Dap 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 Sales & Marketing industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Spacedisk Dap 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 SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet, Spacedisk Dap may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Stagnating economy with rate increase
– Spacedisk Dap 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 acceleration in Forth Industrial Revolution
– Spacedisk Dap has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Spacedisk Dap needs to keep up with the evolution of technology in the Sales & Marketing 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.
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 Spacedisk Dap in the Sales & Marketing 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. Spacedisk Dap needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Consumer confidence and its impact on Spacedisk Dap 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.
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 Spacedisk Dap business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Spacedisk Dap 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. Spacedisk Dap can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Spacedisk Dap can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet 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 SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet 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 SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet 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 SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet 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 SpaceDisk, Inc: Marketing a Global Distributed Application Platform on the Internet 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 Spacedisk Dap needs to make to build a sustainable competitive advantage.
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