Case Study Description of Embrace (A): Opportunity Identification
The Embrace case series provides an engaging context to understand social innovation, by taking students through a sequence of critical decisions from opportunity analysis and market feasibility study to formulating a competitive strategy and developing business models for growth. The focus of the case is on an innovative idea to solve the problem of a high number of fatalities in premature births in rural India, and the potential for an affordable product. The case is structured as a four-part series:Part A: Opportunity Identification. The setting is an MBA classroom where five teams have been given five ideas and the students are asked to match each idea to each team. The focus is on how to identify and evaluate an appropriate opportunity given a unique entrepreneurial team, its composition, and its prior experience. Often, entrepreneurs discount the critical role that team-task fit plays in subsequent success.Part B: Market Feasibility Analysis (9B13M005). The social problem associated with neonatal care in rural India is presented and the economics of providing reasonable care for premature babies is discussed. Is it possible to find an affordable and profitable price point, and make the project sustainable?Part C: Competitive Strategy (9B13M006). The students are taken through an external analysis of the potential competition. This calls for a close analysis of what the competitive advantage of the venture is and whether it is sustainable. It forces the students to consider other available neonatal care options in the market, as well as to think about the IP issues they could face.Part D: Building the Business Model (9B13M007). The team must decide between manufacturing the product in-house or outsourcing to vendors. Also, issues of distribution and sales require consideration. Authors Mridula Anand, Anand Nandkumar, and Charles Dhanaraj are affiliated with Indian School of Business.
Authors :: Mridula Anand, Anand Nandkumar, Charles Dhanaraj
Swot Analysis of "Embrace (A): Opportunity Identification" written by Mridula Anand, Anand Nandkumar, Charles Dhanaraj includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Neonatal Premature facing as an external strategic factors. Some of the topics covered in Embrace (A): Opportunity Identification case study are - Strategic Management Strategies, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Embrace (A): Opportunity Identification casestudy better are - – there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies,
challanges to central banks by blockchain based private currencies, increasing energy prices, etc
Introduction to SWOT Analysis of Embrace (A): Opportunity Identification
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Embrace (A): Opportunity Identification case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Neonatal Premature, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Neonatal Premature 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 Embrace (A): Opportunity Identification can be done for the following purposes –
1. Strategic planning using facts provided in Embrace (A): Opportunity Identification case study
2. Improving business portfolio management of Neonatal Premature
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Neonatal Premature
Strengths Embrace (A): Opportunity Identification | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Neonatal Premature in Embrace (A): Opportunity Identification Harvard Business Review case study are -
Effective Research and Development (R&D)
– Neonatal Premature 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 Embrace (A): Opportunity Identification - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Neonatal Premature in the sector have low bargaining power. Embrace (A): Opportunity Identification has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Neonatal Premature to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Neonatal Premature 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.
Organizational Resilience of Neonatal Premature
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Neonatal Premature does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Neonatal Premature 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.
High brand equity
– Neonatal Premature has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Neonatal Premature to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Neonatal Premature is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Embrace (A): Opportunity Identification firm has clearly differentiated products in the market place. This has enabled Neonatal Premature to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Neonatal Premature to invest into research and development (R&D) and innovation.
Analytics focus
– Neonatal Premature 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 Mridula Anand, Anand Nandkumar, Charles Dhanaraj 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.
Learning organization
- Neonatal Premature 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 Neonatal Premature is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Embrace (A): Opportunity Identification Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Neonatal Premature has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Neonatal Premature 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.
Operational resilience
– The operational resilience strategy in the Embrace (A): Opportunity Identification 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 Embrace (A): Opportunity Identification | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Embrace (A): Opportunity Identification are -
Skills based hiring
– The stress on hiring functional specialists at Neonatal Premature 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 cash cycle compare to competitors
Neonatal Premature 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Neonatal Premature needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High operating costs
– Compare to the competitors, firm in the HBR case study Embrace (A): Opportunity Identification 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 Neonatal Premature 's lucrative customers.
Need for greater diversity
– Neonatal Premature 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.
Increasing silos among functional specialists
– The organizational structure of Neonatal Premature is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Neonatal Premature needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Neonatal Premature to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Embrace (A): Opportunity Identification 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 Neonatal Premature has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Neonatal Premature, firm in the HBR case study Embrace (A): Opportunity Identification needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Neonatal Premature products
– To increase the profitability and margins on the products, Neonatal Premature needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Embrace (A): Opportunity Identification, it seems that the employees of Neonatal Premature 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.
Capital Spending Reduction
– Even during the low interest decade, Neonatal Premature 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.
Opportunities Embrace (A): Opportunity Identification | 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 Embrace (A): Opportunity Identification are -
Using analytics as competitive advantage
– Neonatal Premature 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 Embrace (A): Opportunity Identification - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Neonatal Premature to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Neonatal Premature can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Embrace (A): Opportunity Identification 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Neonatal Premature 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 Neonatal Premature to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Neonatal Premature 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. Neonatal Premature 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Neonatal Premature 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.
Loyalty marketing
– Neonatal Premature 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.
Manufacturing automation
– Neonatal Premature can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Building a culture of innovation
– managers at Neonatal Premature 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 Strategy & Execution segment.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Neonatal Premature in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Neonatal Premature to increase its market reach. Neonatal Premature will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Neonatal Premature can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Neonatal Premature has opened avenues for new revenue streams for the organization in the industry. This can help Neonatal Premature to build a more holistic ecosystem as suggested in the Embrace (A): Opportunity Identification case study. Neonatal Premature can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Neonatal Premature 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.
Threats Embrace (A): Opportunity Identification External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Embrace (A): Opportunity Identification are -
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. Neonatal Premature needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Neonatal Premature with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Neonatal Premature
– 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 Neonatal Premature.
Shortening product life cycle
– it is one of the major threat that Neonatal Premature is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Neonatal Premature 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Neonatal Premature in the Strategy & Execution industry. The Strategy & Execution 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.
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 Neonatal Premature in the Strategy & Execution sector and impact the bottomline of the organization.
Consumer confidence and its impact on Neonatal Premature 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.
Regulatory challenges
– Neonatal Premature 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 Strategy & Execution industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Neonatal Premature 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 Embrace (A): Opportunity Identification .
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Embrace (A): Opportunity Identification, Neonatal Premature may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Technology acceleration in Forth Industrial Revolution
– Neonatal Premature has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Neonatal Premature needs to keep up with the evolution of technology in the Strategy & Execution 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 Embrace (A): Opportunity Identification 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 Embrace (A): Opportunity Identification 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 Embrace (A): Opportunity Identification 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 Embrace (A): Opportunity Identification 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 Embrace (A): Opportunity Identification 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 Neonatal Premature needs to make to build a sustainable competitive advantage.