Game CoLab: Can It Connect Indie Game Developers? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Game CoLab: Can It Connect Indie Game Developers?
In July 2014, nine months after they had developed a collaborative workplace for independent video game developers in Phoenix, Arizona, the two founders of the Game CoLab were discussing how to move the business forward. Using the Lean Startup method, they had designed their business model and opened a coworking space where they could also hold meetings, competitions and games showcases. However, they now face two challenges - declining membership and the need to move to new premises - and an exciting opportunity to work with corporate and educational organizations who are looking to "gamify" their digital offerings. The founders have four choices: (1) continue to maintain the coworking space concept, which has generated limited revenues so far; (2) pivot their business model to focus more on building the local and virtual community with events and cheaper, more flexible memberships; (3) pursue corporate business for customized game development while either continuing or abandoning the coworking space business; and (4) pursue a more major pivot whereby the company would become a start-up incubator. T.S. Raghu is affiliated with Arizona State University.
Swot Analysis of "Game CoLab: Can It Connect Indie Game Developers?" written by Collin Sellman, T.S. Raghu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Coworking Game facing as an external strategic factors. Some of the topics covered in Game CoLab: Can It Connect Indie Game Developers? case study are - Strategic Management Strategies, Marketing, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Game CoLab: Can It Connect Indie Game Developers? casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, increasing energy prices, increasing household debt because of falling income levels,
supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Game CoLab: Can It Connect Indie Game Developers?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Game CoLab: Can It Connect Indie Game Developers? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Coworking Game, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Coworking Game 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 CoLab: Can It Connect Indie Game Developers? can be done for the following purposes –
1. Strategic planning using facts provided in Game CoLab: Can It Connect Indie Game Developers? case study
2. Improving business portfolio management of Coworking Game
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 Coworking Game
Strengths Game CoLab: Can It Connect Indie Game Developers? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Coworking Game in Game CoLab: Can It Connect Indie Game Developers? Harvard Business Review case study are -
Analytics focus
– Coworking Game 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 Collin Sellman, T.S. Raghu 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 Coworking Game in the sector have low bargaining power. Game CoLab: Can It Connect Indie Game Developers? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Coworking Game to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Coworking Game 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 CoLab: Can It Connect Indie Game Developers? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Coworking Game 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 Coworking Game in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Coworking Game 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.
Cross disciplinary teams
– Horizontal connected teams at the Coworking Game 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
– Coworking Game 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 Coworking Game in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Coworking Game 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 Coworking Game is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Game CoLab: Can It Connect Indie Game Developers? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Coworking Game is one of the most innovative firm in sector. Manager in Game CoLab: Can It Connect Indie Game Developers? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Coworking Game 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 CoLab: Can It Connect Indie Game Developers? - 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
– Coworking Game is present in almost all the verticals within the industry. This has provided firm in Game CoLab: Can It Connect Indie Game Developers? 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 CoLab: Can It Connect Indie Game Developers? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Game CoLab: Can It Connect Indie Game Developers? are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Game CoLab: Can It Connect Indie Game Developers?, in the dynamic environment Coworking Game has struggled to respond to the nimble upstart competition. Coworking Game has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Game CoLab: Can It Connect Indie Game Developers? HBR case study mentions - Coworking Game 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.
Need for greater diversity
– Coworking Game has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High operating costs
– Compare to the competitors, firm in the HBR case study Game CoLab: Can It Connect Indie Game Developers? 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 Coworking Game 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Game CoLab: Can It Connect Indie Game Developers? 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 CoLab: Can It Connect Indie Game Developers? can leverage the sales team experience to cultivate customer relationships as Coworking Game is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Coworking Game has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
No frontier risks strategy
– After analyzing the HBR case study Game CoLab: Can It Connect Indie Game Developers?, 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.
Increasing silos among functional specialists
– The organizational structure of Coworking Game is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Coworking Game needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Coworking Game to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Coworking Game products
– To increase the profitability and margins on the products, Coworking Game needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Game CoLab: Can It Connect Indie Game Developers? 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 Coworking Game has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Coworking Game, firm in the HBR case study Game CoLab: Can It Connect Indie Game Developers? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Game CoLab: Can It Connect Indie Game Developers? | 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 CoLab: Can It Connect Indie Game Developers? are -
Creating value in data economy
– The success of analytics program of Coworking Game has opened avenues for new revenue streams for the organization in the industry. This can help Coworking Game to build a more holistic ecosystem as suggested in the Game CoLab: Can It Connect Indie Game Developers? case study. Coworking Game can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Coworking Game 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Coworking Game is facing challenges because of the dominance of functional experts in the organization. Game CoLab: Can It Connect Indie Game Developers? 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.
Building a culture of innovation
– managers at Coworking Game 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Coworking Game can use these opportunities to build new business models that can help the communities that Coworking Game operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Coworking Game 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 Coworking Game to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Coworking Game 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. Coworking Game 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.
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 Coworking Game in the consumer business. Now Coworking Game can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Coworking Game 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.
Learning at scale
– Online learning technologies has now opened space for Coworking Game 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
– Coworking Game 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Coworking Game can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Game CoLab: Can It Connect Indie Game Developers?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Coworking Game can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Game CoLab: Can It Connect Indie Game Developers? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Game CoLab: Can It Connect Indie Game Developers? are -
Stagnating economy with rate increase
– Coworking Game 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.
Environmental challenges
– Coworking Game 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. Coworking Game can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Coworking Game 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.
Shortening product life cycle
– it is one of the major threat that Coworking Game is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Coworking Game 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.
Consumer confidence and its impact on Coworking Game 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.
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. Coworking Game needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Coworking Game.
High dependence on third party suppliers
– Coworking Game 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.
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 CoLab: Can It Connect Indie Game Developers?, Coworking Game 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 .
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. Coworking Game 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 Game CoLab: Can It Connect Indie Game Developers? 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 CoLab: Can It Connect Indie Game Developers? 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 CoLab: Can It Connect Indie Game Developers? 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 CoLab: Can It Connect Indie Game Developers? 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 CoLab: Can It Connect Indie Game Developers? 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 Coworking Game needs to make to build a sustainable competitive advantage.
