Game Time Decision for AppDirect SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Game Time Decision for AppDirect
AppDirect is a start-up that offers small businesses software-as-a-service solutions through a business app marketplace and portal. Daniel Saks, cofounder and co-CEO, is faced with the key question of deciding distribution strategy: should AppDirect find channel partners or create a self-branded platform? The case describes the evolving business app market by analyzing the strategies and business models of competitors for both the marketplace and portal products. The marketplace offers small businesses search, trial, and purchase of software-as-a-service apps for a wide range of business needs, from customer management to human resources, while the portal service gives businesses the ability to manage all their apps in one place, from user management to single sign-on. The case encourages discussion on the evolution and future direction of this nascent market.
Authors :: Andrei Hagiu, Laura Arjona, Emily Zhang
Swot Analysis of "Game Time Decision for AppDirect" written by Andrei Hagiu, Laura Arjona, Emily Zhang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Appdirect Portal facing as an external strategic factors. Some of the topics covered in Game Time Decision for AppDirect case study are - Strategic Management Strategies, Entrepreneurship, Growth strategy, Innovation, Joint ventures, Marketing, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Game Time Decision for AppDirect casestudy better are - – challanges to central banks by blockchain based private currencies, there is backlash against globalization, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings,
there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Game Time Decision for AppDirect
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Game Time Decision for AppDirect case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Appdirect Portal, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Appdirect Portal 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 Game Time Decision for AppDirect can be done for the following purposes –
1. Strategic planning using facts provided in Game Time Decision for AppDirect case study
2. Improving business portfolio management of Appdirect Portal
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 Appdirect Portal
Strengths Game Time Decision for AppDirect | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Appdirect Portal in Game Time Decision for AppDirect Harvard Business Review case study are -
High brand equity
– Appdirect Portal has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Appdirect Portal to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Appdirect Portal 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
– Game Time Decision for AppDirect firm has clearly differentiated products in the market place. This has enabled Appdirect Portal to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Appdirect Portal to invest into research and development (R&D) and innovation.
Learning organization
- Appdirect Portal 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 Appdirect Portal is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Game Time Decision for AppDirect Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Appdirect Portal 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 Game Time Decision for AppDirect HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Appdirect Portal is one of the most innovative firm in sector. Manager in Game Time Decision for AppDirect Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Appdirect Portal has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Game Time Decision for AppDirect 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Appdirect Portal digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Appdirect Portal 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.
Cross disciplinary teams
– Horizontal connected teams at the Appdirect Portal 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.
Successful track record of launching new products
– Appdirect Portal has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Appdirect Portal 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 Game Time Decision for AppDirect 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.
Diverse revenue streams
– Appdirect Portal is present in almost all the verticals within the industry. This has provided firm in Game Time Decision for AppDirect 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.
Weaknesses Game Time Decision for AppDirect | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Game Time Decision for AppDirect are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Appdirect Portal is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Game Time Decision for AppDirect can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Game Time Decision for AppDirect 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 Appdirect Portal 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Game Time Decision for AppDirect, is just above the industry average. Appdirect Portal 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.
Products dominated business model
– Even though Appdirect Portal 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 - Game Time Decision for AppDirect should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Appdirect Portal is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Appdirect Portal needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Appdirect Portal to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Appdirect Portal 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 Game Time Decision for AppDirect 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 Appdirect Portal has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Appdirect Portal 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.
Slow decision making process
– As mentioned earlier in the report, Appdirect Portal 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. Appdirect Portal 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.
High cash cycle compare to competitors
Appdirect Portal 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Game Time Decision for AppDirect, in the dynamic environment Appdirect Portal has struggled to respond to the nimble upstart competition. Appdirect Portal has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Game Time Decision for AppDirect | 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 Game Time Decision for AppDirect are -
Learning at scale
– Online learning technologies has now opened space for Appdirect Portal 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.
Developing new processes and practices
– Appdirect Portal 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.
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 Appdirect Portal 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.
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. Appdirect Portal can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Appdirect Portal to increase its market reach. Appdirect Portal 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.
Building a culture of innovation
– managers at Appdirect Portal 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 Appdirect Portal 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.
Creating value in data economy
– The success of analytics program of Appdirect Portal has opened avenues for new revenue streams for the organization in the industry. This can help Appdirect Portal to build a more holistic ecosystem as suggested in the Game Time Decision for AppDirect case study. Appdirect Portal can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Appdirect Portal can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Appdirect Portal 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. Appdirect Portal 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.
Loyalty marketing
– Appdirect Portal 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.
Using analytics as competitive advantage
– Appdirect Portal 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 Game Time Decision for AppDirect - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Appdirect Portal to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Appdirect Portal can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Game Time Decision for AppDirect 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.
Threats Game Time Decision for AppDirect External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Game Time Decision for AppDirect are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Game Time Decision for AppDirect, Appdirect Portal 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
– Appdirect Portal has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Appdirect Portal 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.
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. Appdirect Portal needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing wage structure of Appdirect Portal
– 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 Appdirect Portal.
Consumer confidence and its impact on Appdirect Portal 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 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.
Regulatory challenges
– Appdirect Portal 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.
Stagnating economy with rate increase
– Appdirect Portal 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Appdirect Portal 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 Game Time Decision for AppDirect .
High dependence on third party suppliers
– Appdirect Portal 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.
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 Appdirect Portal business can come under increasing regulations regarding data privacy, data security, 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. Appdirect Portal 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.
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.
Weighted SWOT Analysis of Game Time Decision for AppDirect 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 Game Time Decision for AppDirect 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 Game Time Decision for AppDirect 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 Game Time Decision for AppDirect 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 Game Time Decision for AppDirect 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 Appdirect Portal needs to make to build a sustainable competitive advantage.