Iridium Global Satellite Phone System: Lost in Space? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Iridium Global Satellite Phone System: Lost in Space?
The spin-off of Iridium, a global telecommunications system, represented a significant business risk for Motorola, as many talented Motorola executives joined the venture in the late 1990s. This bold technology gamble suffered from numerous marketing missteps, which led to Iridium's bankruptcy in August 1999.
Swot Analysis of "Iridium Global Satellite Phone System: Lost in Space?" written by Robert Schieffer, Min Chen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Iridium Motorola facing as an external strategic factors. Some of the topics covered in Iridium Global Satellite Phone System: Lost in Space? case study are - Strategic Management Strategies, Market research, Risk management and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Iridium Global Satellite Phone System: Lost in Space? casestudy better are - – increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, increasing energy prices,
increasing commodity prices, technology disruption, etc
Introduction to SWOT Analysis of Iridium Global Satellite Phone System: Lost in Space?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Iridium Global Satellite Phone System: Lost in Space? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Iridium Motorola, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Iridium Motorola 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 Iridium Global Satellite Phone System: Lost in Space? can be done for the following purposes –
1. Strategic planning using facts provided in Iridium Global Satellite Phone System: Lost in Space? case study
2. Improving business portfolio management of Iridium Motorola
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 Iridium Motorola
Strengths Iridium Global Satellite Phone System: Lost in Space? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Iridium Motorola in Iridium Global Satellite Phone System: Lost in Space? Harvard Business Review case study are -
Highly skilled collaborators
– Iridium Motorola 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 Iridium Global Satellite Phone System: Lost in Space? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Iridium Motorola has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Iridium Global Satellite Phone System: Lost in Space? 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.
Organizational Resilience of Iridium Motorola
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Iridium Motorola 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
– Iridium Motorola has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Iridium Motorola 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.
High switching costs
– The high switching costs that Iridium Motorola 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Iridium Global Satellite Phone System: Lost in Space? firm has clearly differentiated products in the market place. This has enabled Iridium Motorola to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Iridium Motorola to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Iridium Motorola 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 Iridium Global Satellite Phone System: Lost in Space? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Iridium Motorola digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Iridium Motorola 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.
Ability to lead change in Sales & Marketing field
– Iridium Motorola 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 Iridium Motorola in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Iridium Motorola has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Iridium Motorola to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Iridium Motorola is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Iridium Motorola is one of the most innovative firm in sector. Manager in Iridium Global Satellite Phone System: Lost in Space? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Iridium Global Satellite Phone System: Lost in Space? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Iridium Global Satellite Phone System: Lost in Space? are -
Products dominated business model
– Even though Iridium Motorola 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 - Iridium Global Satellite Phone System: Lost in Space? should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Iridium Motorola 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.
Slow to strategic competitive environment developments
– As Iridium Global Satellite Phone System: Lost in Space? HBR case study mentions - Iridium Motorola 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Iridium Global Satellite Phone System: Lost in Space?, in the dynamic environment Iridium Motorola has struggled to respond to the nimble upstart competition. Iridium Motorola has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Iridium Global Satellite Phone System: Lost in Space?, is just above the industry average. Iridium Motorola needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert Schieffer, Min Chen suggests that, Iridium Motorola 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Iridium Global Satellite Phone System: Lost in Space? 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 Iridium Motorola 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Iridium Global Satellite Phone System: Lost in Space? 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 Iridium Motorola has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Iridium Global Satellite Phone System: Lost in Space? 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 Iridium Global Satellite Phone System: Lost in Space? can leverage the sales team experience to cultivate customer relationships as Iridium Motorola is planning to shift buying processes online.
High cash cycle compare to competitors
Iridium Motorola 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.
Increasing silos among functional specialists
– The organizational structure of Iridium Motorola is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Iridium Motorola needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Iridium Motorola to focus more on services rather than just following the product oriented approach.
Opportunities Iridium Global Satellite Phone System: Lost in Space? | 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 Iridium Global Satellite Phone System: Lost in Space? are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Iridium Motorola 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.
Manufacturing automation
– Iridium Motorola can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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
– Iridium Motorola 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Iridium Motorola is facing challenges because of the dominance of functional experts in the organization. Iridium Global Satellite Phone System: Lost in Space? 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.
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 Iridium Motorola in the consumer business. Now Iridium Motorola can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Iridium Motorola 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 Iridium Motorola to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Iridium Motorola has opened avenues for new revenue streams for the organization in the industry. This can help Iridium Motorola to build a more holistic ecosystem as suggested in the Iridium Global Satellite Phone System: Lost in Space? case study. Iridium Motorola can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Iridium Motorola can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Iridium Motorola 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 Iridium Global Satellite Phone System: Lost in Space? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Iridium Motorola to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Iridium Motorola 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.
Learning at scale
– Online learning technologies has now opened space for Iridium Motorola 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Iridium Motorola can use these opportunities to build new business models that can help the communities that Iridium Motorola operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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. Iridium Motorola can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Iridium Global Satellite Phone System: Lost in Space? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Iridium Global Satellite Phone System: Lost in Space? are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Iridium Motorola.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Iridium Motorola 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
– Iridium Motorola 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, Iridium Motorola 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 Iridium Global Satellite Phone System: Lost in Space? .
Stagnating economy with rate increase
– Iridium Motorola 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.
Environmental challenges
– Iridium Motorola 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. Iridium Motorola can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
High dependence on third party suppliers
– Iridium Motorola high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Shortening product life cycle
– it is one of the major threat that Iridium Motorola is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Iridium Motorola with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Iridium Motorola needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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. Iridium Motorola can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Iridium Motorola has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Iridium Motorola 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 Iridium Global Satellite Phone System: Lost in Space? 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 Iridium Global Satellite Phone System: Lost in Space? 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 Iridium Global Satellite Phone System: Lost in Space? 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 Iridium Global Satellite Phone System: Lost in Space? 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 Iridium Global Satellite Phone System: Lost in Space? 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 Iridium Motorola needs to make to build a sustainable competitive advantage.
