Case Study Description of Concept Devices, Inc.: International Market Entry
Concept is a highly touted startup venture in distributed data processing computers. The company has only made one sale to date, but has an order backlog for its unique product and expects an almost vertical growth curve. The company has been courted seriously by potential partners in France and the United Kingdom. Management wishes to decide how best to set up distribution in Europe.
Swot Analysis of "Concept Devices, Inc.: International Market Entry" written by Thomas V. Bonoma, Randy Masel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Courted Backlog facing as an external strategic factors. Some of the topics covered in Concept Devices, Inc.: International Market Entry case study are - Strategic Management Strategies, Entrepreneurship, IT, Marketing, Supply chain and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Concept Devices, Inc.: International Market Entry casestudy better are - – talent flight as more people leaving formal jobs, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, wage bills are increasing, cloud computing is disrupting traditional business models, there is backlash against globalization, supply chains are disrupted by pandemic ,
increasing commodity prices, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Concept Devices, Inc.: International Market Entry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Concept Devices, Inc.: International Market Entry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Courted Backlog, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Courted Backlog 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 Concept Devices, Inc.: International Market Entry can be done for the following purposes –
1. Strategic planning using facts provided in Concept Devices, Inc.: International Market Entry case study
2. Improving business portfolio management of Courted Backlog
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 Courted Backlog
Strengths Concept Devices, Inc.: International Market Entry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Courted Backlog in Concept Devices, Inc.: International Market Entry Harvard Business Review case study are -
Diverse revenue streams
– Courted Backlog is present in almost all the verticals within the industry. This has provided firm in Concept Devices, Inc.: International Market Entry 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Concept Devices, Inc.: International Market Entry firm has clearly differentiated products in the market place. This has enabled Courted Backlog to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Courted Backlog to invest into research and development (R&D) and innovation.
High brand equity
– Courted Backlog has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Courted Backlog to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Courted Backlog has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Concept Devices, Inc.: International Market Entry 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.
Strong track record of project management
– Courted Backlog is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Courted Backlog
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Courted Backlog 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
– Courted Backlog has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Courted Backlog 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.
Ability to lead change in Sales & Marketing field
– Courted Backlog 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 Courted Backlog in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Courted Backlog 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 Thomas V. Bonoma, Randy Masel 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.
Cross disciplinary teams
– Horizontal connected teams at the Courted Backlog 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.
Effective Research and Development (R&D)
– Courted Backlog 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 Concept Devices, Inc.: International Market Entry - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Courted Backlog 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 Courted Backlog is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Concept Devices, Inc.: International Market Entry Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Concept Devices, Inc.: International Market Entry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Concept Devices, Inc.: International Market Entry are -
No frontier risks strategy
– After analyzing the HBR case study Concept Devices, Inc.: International Market Entry, 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Thomas V. Bonoma, Randy Masel suggests that, Courted Backlog 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.
Skills based hiring
– The stress on hiring functional specialists at Courted Backlog 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Concept Devices, Inc.: International Market Entry 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 Courted Backlog has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Concept Devices, Inc.: International Market Entry, is just above the industry average. Courted Backlog 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.
Low market penetration in new markets
– Outside its home market of Courted Backlog, firm in the HBR case study Concept Devices, Inc.: International Market Entry needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Courted Backlog 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. Courted Backlog 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.
Need for greater diversity
– Courted Backlog 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 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 Courted Backlog supply chain. Even after few cautionary changes mentioned in the HBR case study - Concept Devices, Inc.: International Market Entry, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Courted Backlog vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Courted Backlog is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Courted Backlog needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Courted Backlog to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Concept Devices, Inc.: International Market Entry 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 Courted Backlog 's lucrative customers.
Opportunities Concept Devices, Inc.: International Market Entry | 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 Concept Devices, Inc.: International Market Entry are -
Buying journey improvements
– Courted Backlog can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Concept Devices, Inc.: International Market Entry 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.
Creating value in data economy
– The success of analytics program of Courted Backlog has opened avenues for new revenue streams for the organization in the industry. This can help Courted Backlog to build a more holistic ecosystem as suggested in the Concept Devices, Inc.: International Market Entry case study. Courted Backlog can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Courted Backlog to increase its market reach. Courted Backlog 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.
Leveraging digital technologies
– Courted Backlog 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
– Courted Backlog 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 Concept Devices, Inc.: International Market Entry - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Courted Backlog to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Courted Backlog 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, Courted Backlog can use these opportunities to build new business models that can help the communities that Courted Backlog 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. Courted Backlog can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Courted Backlog has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, 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. Courted Backlog can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Courted Backlog 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. Courted Backlog 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. Courted Backlog 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.
Learning at scale
– Online learning technologies has now opened space for Courted Backlog 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 Concept Devices, Inc.: International Market Entry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Concept Devices, Inc.: International Market Entry are -
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. Courted Backlog 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.
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. Courted Backlog can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Courted Backlog
– 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 Courted Backlog.
Stagnating economy with rate increase
– Courted Backlog 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.
Shortening product life cycle
– it is one of the major threat that Courted Backlog 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
– Courted Backlog has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Courted Backlog 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Courted Backlog with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Courted Backlog in the Sales & Marketing sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Courted Backlog 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 Concept Devices, Inc.: International Market Entry .
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 Courted Backlog.
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. Courted Backlog needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Concept Devices, Inc.: International Market Entry 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 Concept Devices, Inc.: International Market Entry 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 Concept Devices, Inc.: International Market Entry 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 Concept Devices, Inc.: International Market Entry 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 Concept Devices, Inc.: International Market Entry 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 Courted Backlog needs to make to build a sustainable competitive advantage.
