iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study Description of iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version
In 2006, a nascent market for music-enabled mobile phones was emerging to challenge Apple Computer's dominant position in the digital music industry. Through its iPod line of portable digital music devices and its iTunes Music Store, Apple controlled more than half of the market for both music player hardware and online music sales. But the evolving ability to merge those devices with mobile phones, and to deliver music to mobile handsets (via streaming, side-loading content from a PC or downloading it wirelessly over the air), created a potentially market-changing opportunity for players in several industries. Examines the key players, including Apple; the major wireless service carriers, such as Cingular, Sprint-Nextel, and Verizon Wireless; technology and service vendors, such as RealNetworks and Microsoft; and mobile virtual network operators, such as Virgin Mobile. Covers the origins of the mobile music business, projections on its potential size, its technological building blocks (such as file formats, digital rights management systems, wireless network infrastructure, and handset capacity), and the key dynamics--music delivery method, pricing, mobile-PC integration--that characterize mobile music business models.
Authors :: Michael Slind, David B. Yoffie, Travis D. Merrill
Swot Analysis of "iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version" written by Michael Slind, David B. Yoffie, Travis D. Merrill includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Music Mobile facing as an external strategic factors. Some of the topics covered in iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version case study are - Strategic Management Strategies, IT, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version casestudy better are - – technology disruption, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion,
increasing energy prices, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Music Mobile, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Music Mobile 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 iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version case study
2. Improving business portfolio management of Music Mobile
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 Music Mobile
Strengths iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Music Mobile in iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version Harvard Business Review case study are -
Highly skilled collaborators
– Music Mobile 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 iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version firm has clearly differentiated products in the market place. This has enabled Music Mobile to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Music Mobile to invest into research and development (R&D) and innovation.
Strong track record of project management
– Music Mobile is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Music Mobile in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Music Mobile 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 Michael Slind, David B. Yoffie, Travis D. Merrill 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.
Low bargaining power of suppliers
– Suppliers of Music Mobile in the sector have low bargaining power. iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Music Mobile to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Music Mobile 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 Music Mobile is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Music Mobile
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Music Mobile does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Music Mobile has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Music Mobile to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Music Mobile is one of the most innovative firm in sector. Manager in iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Music Mobile digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Music Mobile 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.
Effective Research and Development (R&D)
– Music Mobile 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 iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version, in the dynamic environment Music Mobile has struggled to respond to the nimble upstart competition. Music Mobile has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version 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 Music Mobile 's lucrative customers.
Lack of clear differentiation of Music Mobile products
– To increase the profitability and margins on the products, Music Mobile needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Music Mobile is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Music Mobile needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Music Mobile to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version, 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Michael Slind, David B. Yoffie, Travis D. Merrill suggests that, Music Mobile 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Music Mobile is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version 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 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 Music Mobile supply chain. Even after few cautionary changes mentioned in the HBR case study - iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Music Mobile vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Music Mobile 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.
Slow to strategic competitive environment developments
– As iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version HBR case study mentions - Music Mobile takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Skills based hiring
– The stress on hiring functional specialists at Music Mobile 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.
Opportunities iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version | 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 iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version are -
Loyalty marketing
– Music Mobile 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.
Developing new processes and practices
– Music Mobile 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.
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. Music Mobile 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. Music Mobile 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, Music Mobile 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.
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. Music Mobile 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 Music Mobile 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.
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 Music Mobile in the consumer business. Now Music Mobile can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Music Mobile 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Music Mobile is facing challenges because of the dominance of functional experts in the organization. iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Music Mobile can use these opportunities to build new business models that can help the communities that Music Mobile operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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 Music Mobile 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.
Creating value in data economy
– The success of analytics program of Music Mobile has opened avenues for new revenue streams for the organization in the industry. This can help Music Mobile to build a more holistic ecosystem as suggested in the iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version case study. Music Mobile can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Music Mobile to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Threats iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version are -
Technology acceleration in Forth Industrial Revolution
– Music Mobile has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Music Mobile 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. Music Mobile needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Music Mobile needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Music Mobile can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Music Mobile 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Music Mobile 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 Music Mobile with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Music Mobile 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.
Regulatory challenges
– Music Mobile 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.
Increasing wage structure of Music Mobile
– 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 Music Mobile.
Shortening product life cycle
– it is one of the major threat that Music Mobile is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Music Mobile 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 Music Mobile.
Weighted SWOT Analysis of iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version 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 iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version 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 iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version 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 iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version 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 iPod vs. Cell Phone: A Mobile Music Revolution?, Spanish Version 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 Music Mobile needs to make to build a sustainable competitive advantage.