Brightcove, Inc. in 2007 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Brightcove, Inc. in 2007
Brightcove, a technology and services provider to content owners in the Internet television field, aimed to become a media distribution company in its own right. On October 30, 2006, it relaunched its Website-and, in effect, its business. With its new, consumer-facing home page, and with new offerings for advertisers and affiliates as well as video publishers, Brightcove sought to build a four-sided business (or "platform") around the rapidly expanding online video industry. Simultaneously, CEO Jeremy Allaire was completing a major funding round that would enable the company to make strategic investments in some or all of several categories: technology, media distribution infrastructure, international expansion, and acquisitions. As Allaire and his fellow executives weighed those options, they confronted competitive threats in multiple quarters, but particularly from YouTube, a hugely popular video-sharing site that online search giant Google had recently acquired. Covers Brightcove's vision for its multi-sided business, its technology offering and early business model, its efforts to shift to a new model based on media distribution, and its chief competitors in that market space.
Swot Analysis of "Brightcove, Inc. in 2007" written by Andrei Hagiu, David B. Yoffie includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Brightcove Allaire facing as an external strategic factors. Some of the topics covered in Brightcove, Inc. in 2007 case study are - Strategic Management Strategies, Competition, Entrepreneurship, Financial management, Internet, Marketing, Networking, Risk management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Brightcove, Inc. in 2007 casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy,
technology disruption, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Brightcove, Inc. in 2007
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Brightcove, Inc. in 2007 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Brightcove Allaire, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Brightcove Allaire 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 Brightcove, Inc. in 2007 can be done for the following purposes –
1. Strategic planning using facts provided in Brightcove, Inc. in 2007 case study
2. Improving business portfolio management of Brightcove Allaire
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 Brightcove Allaire
Strengths Brightcove, Inc. in 2007 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Brightcove Allaire in Brightcove, Inc. in 2007 Harvard Business Review case study are -
Learning organization
- Brightcove Allaire 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 Brightcove Allaire is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Brightcove, Inc. in 2007 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Brightcove Allaire
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Brightcove Allaire 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 Brightcove Allaire are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to lead change in Strategy & Execution field
– Brightcove Allaire 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 Brightcove Allaire in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Brightcove Allaire has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Brightcove Allaire 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 brand equity
– Brightcove Allaire has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Brightcove Allaire to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– Brightcove, Inc. in 2007 firm has clearly differentiated products in the market place. This has enabled Brightcove Allaire to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Brightcove Allaire to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Brightcove Allaire is present in almost all the verticals within the industry. This has provided firm in Brightcove, Inc. in 2007 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.
Highly skilled collaborators
– Brightcove Allaire 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 Brightcove, Inc. in 2007 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Brightcove Allaire 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.
Innovation driven organization
– Brightcove Allaire is one of the most innovative firm in sector. Manager in Brightcove, Inc. in 2007 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Brightcove Allaire is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Brightcove, Inc. in 2007 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Brightcove, Inc. in 2007 are -
Products dominated business model
– Even though Brightcove Allaire 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 - Brightcove, Inc. in 2007 should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Brightcove, Inc. in 2007 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 Brightcove, Inc. in 2007 can leverage the sales team experience to cultivate customer relationships as Brightcove Allaire is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Brightcove Allaire, firm in the HBR case study Brightcove, Inc. in 2007 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Brightcove, Inc. in 2007, is just above the industry average. Brightcove Allaire 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 cash cycle compare to competitors
Brightcove Allaire 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.
Interest costs
– Compare to the competition, Brightcove Allaire 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Brightcove, Inc. in 2007 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 Brightcove Allaire has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Brightcove, Inc. in 2007, it seems that the employees of Brightcove Allaire 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.
No frontier risks strategy
– After analyzing the HBR case study Brightcove, Inc. in 2007, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Skills based hiring
– The stress on hiring functional specialists at Brightcove Allaire 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.
Increasing silos among functional specialists
– The organizational structure of Brightcove Allaire is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Brightcove Allaire needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Brightcove Allaire to focus more on services rather than just following the product oriented approach.
Opportunities Brightcove, Inc. in 2007 | 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 Brightcove, Inc. in 2007 are -
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 Brightcove Allaire in the consumer business. Now Brightcove Allaire can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Brightcove Allaire can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Brightcove Allaire 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.
Manufacturing automation
– Brightcove Allaire 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Brightcove Allaire can use these opportunities to build new business models that can help the communities that Brightcove Allaire operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Learning at scale
– Online learning technologies has now opened space for Brightcove Allaire 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.
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. Brightcove Allaire can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Brightcove Allaire 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.
Buying journey improvements
– Brightcove Allaire can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Brightcove, Inc. in 2007 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.
Better consumer reach
– The expansion of the 5G network will help Brightcove Allaire to increase its market reach. Brightcove Allaire 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.
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. Brightcove Allaire can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Brightcove Allaire 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 Brightcove Allaire to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Brightcove Allaire can develop new processes and procedures in Strategy & Execution 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.
Threats Brightcove, Inc. in 2007 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Brightcove, Inc. in 2007 are -
Regulatory challenges
– Brightcove Allaire 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.
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.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Brightcove Allaire business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Brightcove Allaire
– 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 Brightcove Allaire.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Brightcove Allaire 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.
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. Brightcove Allaire needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Brightcove, Inc. in 2007, Brightcove Allaire 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 .
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 Brightcove Allaire in the Strategy & Execution sector and impact the bottomline of the organization.
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 Brightcove Allaire.
Shortening product life cycle
– it is one of the major threat that Brightcove Allaire is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Brightcove Allaire 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.
Technology acceleration in Forth Industrial Revolution
– Brightcove Allaire has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Brightcove Allaire 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.
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. Brightcove Allaire 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.
Weighted SWOT Analysis of Brightcove, Inc. in 2007 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 Brightcove, Inc. in 2007 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 Brightcove, Inc. in 2007 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 Brightcove, Inc. in 2007 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 Brightcove, Inc. in 2007 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 Brightcove Allaire needs to make to build a sustainable competitive advantage.
