Breaking with the Past?: Four Examples of Product Change SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Breaking with the Past?: Four Examples of Product Change
Describes four examples of product change where the new version of the product makes a "break with the past" in some important respect. The four examples are those of the IBM PS/2 family of personal computers, Lotus 1-2-3 spreadsheet software, Nikon's line of SLR camera bodies and lenses and Rolm's telephone switching system. Illustrates different ways in which a product may break with the past, and is useful for discussing the reasons for making a break and the implementation of the break in the context of a product line.
Swot Analysis of "Breaking with the Past?: Four Examples of Product Change" written by Anirudh Dhebar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Break Examples facing as an external strategic factors. Some of the topics covered in Breaking with the Past?: Four Examples of Product Change case study are - Strategic Management Strategies, Marketing, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Breaking with the Past?: Four Examples of Product Change casestudy better are - – challanges to central banks by blockchain based private currencies, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, technology disruption, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels,
wage bills are increasing, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Breaking with the Past?: Four Examples of Product Change
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Breaking with the Past?: Four Examples of Product Change case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Break Examples, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Break Examples 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 Breaking with the Past?: Four Examples of Product Change can be done for the following purposes –
1. Strategic planning using facts provided in Breaking with the Past?: Four Examples of Product Change case study
2. Improving business portfolio management of Break Examples
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 Break Examples
Strengths Breaking with the Past?: Four Examples of Product Change | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Break Examples in Breaking with the Past?: Four Examples of Product Change Harvard Business Review case study are -
Ability to lead change in Sales & Marketing field
– Break Examples 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 Break Examples in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Break Examples is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Break Examples 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 Breaking with the Past?: Four Examples of Product Change - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Break Examples
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Break Examples does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Break Examples has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Break Examples 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.
Training and development
– Break Examples has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Breaking with the Past?: Four Examples of Product Change 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.
High switching costs
– The high switching costs that Break Examples 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.
High brand equity
– Break Examples has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Break Examples to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Sales & Marketing industry
– Breaking with the Past?: Four Examples of Product Change firm has clearly differentiated products in the market place. This has enabled Break Examples to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Break Examples to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Break Examples are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Learning organization
- Break Examples 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 Break Examples is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Breaking with the Past?: Four Examples of Product Change Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Break Examples 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 Anirudh Dhebar 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.
Weaknesses Breaking with the Past?: Four Examples of Product Change | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Breaking with the Past?: Four Examples of Product Change are -
No frontier risks strategy
– After analyzing the HBR case study Breaking with the Past?: Four Examples of Product Change, 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.
Aligning sales with marketing
– It come across in the case study Breaking with the Past?: Four Examples of Product Change 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 Breaking with the Past?: Four Examples of Product Change can leverage the sales team experience to cultivate customer relationships as Break Examples is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Breaking with the Past?: Four Examples of Product Change 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 Break Examples has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Break Examples has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Need for greater diversity
– Break Examples 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Breaking with the Past?: Four Examples of Product Change 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 Break Examples 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Breaking with the Past?: Four Examples of Product Change, it seems that the employees of Break Examples 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.
Slow to strategic competitive environment developments
– As Breaking with the Past?: Four Examples of Product Change HBR case study mentions - Break Examples 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.
Increasing silos among functional specialists
– The organizational structure of Break Examples is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Break Examples needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Break Examples to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Break Examples is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Breaking with the Past?: Four Examples of Product Change can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Break Examples has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities Breaking with the Past?: Four Examples of Product Change | 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 Breaking with the Past?: Four Examples of Product Change are -
Better consumer reach
– The expansion of the 5G network will help Break Examples to increase its market reach. Break Examples 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.
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. Break Examples 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. Break Examples 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.
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. Break Examples can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Break Examples in the consumer business. Now Break Examples can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Break Examples has opened avenues for new revenue streams for the organization in the industry. This can help Break Examples to build a more holistic ecosystem as suggested in the Breaking with the Past?: Four Examples of Product Change case study. Break Examples can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Break Examples 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, Breaking with the Past?: Four Examples of Product Change, 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
– Break Examples can develop new processes and procedures in Sales & Marketing 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Break Examples can use these opportunities to build new business models that can help the communities that Break Examples operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Buying journey improvements
– Break Examples can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Breaking with the Past?: Four Examples of Product Change 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, Break Examples 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Break Examples 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Break Examples can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Break Examples 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.
Threats Breaking with the Past?: Four Examples of Product Change External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Breaking with the Past?: Four Examples of Product Change are -
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. Break Examples can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Break Examples 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.
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 Break Examples in the Sales & Marketing sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Break Examples 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Breaking with the Past?: Four Examples of Product Change, Break Examples 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
– Break Examples 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.
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.
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. Break Examples 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Break Examples with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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. Break Examples needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Break Examples is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Break Examples has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Break Examples 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.
Weighted SWOT Analysis of Breaking with the Past?: Four Examples of Product Change 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 Breaking with the Past?: Four Examples of Product Change 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 Breaking with the Past?: Four Examples of Product Change 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 Breaking with the Past?: Four Examples of Product Change 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 Breaking with the Past?: Four Examples of Product Change 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 Break Examples needs to make to build a sustainable competitive advantage.
