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 - – wage bills are increasing, central banks are concerned over increasing inflation, increasing commodity prices, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy,
competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, 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 -
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.
Effective Research and Development (R&D)
– Appdirect Portal 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 Game Time Decision for AppDirect - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
Superior customer experience
– The customer experience strategy of Appdirect Portal in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
Ability to lead change in Strategy & Execution field
– Appdirect Portal 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 Appdirect Portal in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
High switching costs
– The high switching costs that Appdirect Portal 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.
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.
Low bargaining power of suppliers
– Suppliers of Appdirect Portal in the sector have low bargaining power. Game Time Decision for AppDirect has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Appdirect Portal to manage not only supply disruptions but also source products at highly competitive prices.
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 -
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Andrei Hagiu, Laura Arjona, Emily Zhang suggests that, Appdirect Portal 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Appdirect Portal 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 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.
Lack of clear differentiation of Appdirect Portal products
– To increase the profitability and margins on the products, Appdirect Portal needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Appdirect Portal supply chain. Even after few cautionary changes mentioned in the HBR case study - Game Time Decision for AppDirect, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Appdirect Portal vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Game Time Decision for AppDirect 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 Game Time Decision for AppDirect can leverage the sales team experience to cultivate customer relationships as Appdirect Portal is planning to shift buying processes online.
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.
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.
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.
Low market penetration in new markets
– Outside its home market of Appdirect Portal, firm in the HBR case study Game Time Decision for AppDirect needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
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.
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. Appdirect Portal can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
Manufacturing automation
– Appdirect Portal 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Appdirect Portal 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Appdirect Portal 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 Appdirect Portal to hire the very best people irrespective of their geographical location.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Appdirect Portal is facing challenges because of the dominance of functional experts in the organization. Game Time Decision for AppDirect case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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.
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.
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 -
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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Appdirect Portal 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Appdirect Portal with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
Shortening product life cycle
– it is one of the major threat that Appdirect Portal is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 .
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.
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.
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.
