Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide
In a quest to organize the unorganized secondary market for used computers, a team of three entrepreneurs attempted to develop a viable plan in a typical emerging market context. Identifying e-waste management problems and the digital divide as overarching social issues, they identified a potential market for empowering consumers through affordable access to information technology (IT) by re-harnessing the potential of used computers. In doing so, they identified emerging market characteristics through micro and macro analyses of the environment and the IT industry.
Swot Analysis of "Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide" written by Srividya Raghavan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Computers Divide facing as an external strategic factors. Some of the topics covered in Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide casestudy better are - – talent flight as more people leaving formal jobs, increasing transportation and logistics costs, increasing energy prices, cloud computing is disrupting traditional business models, increasing commodity prices, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy,
central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Computers Divide, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Computers Divide 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 Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide can be done for the following purposes –
1. Strategic planning using facts provided in Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide case study
2. Improving business portfolio management of Computers Divide
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 Computers Divide
Strengths Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Computers Divide in Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide Harvard Business Review case study are -
Diverse revenue streams
– Computers Divide is present in almost all the verticals within the industry. This has provided firm in Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide 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.
Effective Research and Development (R&D)
– Computers Divide 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 Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide firm has clearly differentiated products in the market place. This has enabled Computers Divide to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Computers Divide to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide 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.
High switching costs
– The high switching costs that Computers Divide 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.
High brand equity
– Computers Divide has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Computers Divide to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Computers Divide 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 Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Computers Divide in the sector have low bargaining power. Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Computers Divide to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Computers Divide 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 Srividya Raghavan 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.
Cross disciplinary teams
– Horizontal connected teams at the Computers Divide 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 recruit top talent
– Computers Divide is one of the leading recruiters in the industry. Managers in the Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Computers Divide has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide 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.
Weaknesses Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide, it seems that the employees of Computers Divide don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow to strategic competitive environment developments
– As Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide HBR case study mentions - Computers Divide 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.
High cash cycle compare to competitors
Computers Divide 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.
Products dominated business model
– Even though Computers Divide 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 - Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Computers Divide 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Computers Divide 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 operating costs
– Compare to the competitors, firm in the HBR case study Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide 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 Computers Divide 's lucrative customers.
Interest costs
– Compare to the competition, Computers Divide 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 decision making process
– As mentioned earlier in the report, Computers Divide 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. Computers Divide 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.
Capital Spending Reduction
– Even during the low interest decade, Computers Divide 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.
Low market penetration in new markets
– Outside its home market of Computers Divide, firm in the HBR case study Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide | 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 Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide are -
Better consumer reach
– The expansion of the 5G network will help Computers Divide to increase its market reach. Computers Divide 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Computers Divide 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, Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Computers Divide to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Computers Divide can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Computers Divide can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide 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.
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. Computers Divide 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. Computers Divide 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.
Leveraging digital technologies
– Computers Divide can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Computers Divide 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 Computers Divide to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Computers Divide 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Computers Divide is facing challenges because of the dominance of functional experts in the organization. Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide 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.
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 Computers Divide 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Computers Divide can use these opportunities to build new business models that can help the communities that Computers Divide operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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 Computers Divide in the consumer business. Now Computers Divide can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide are -
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 Computers Divide in the Strategy & Execution sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Computers Divide can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Computers Divide with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Computers Divide needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Computers Divide 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.
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. Computers Divide 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.
Shortening product life cycle
– it is one of the major threat that Computers Divide is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Computers Divide
– 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 Computers Divide.
Environmental challenges
– Computers Divide 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. Computers Divide can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Computers Divide 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Computers Divide 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 Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Computers Divide 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.
Weighted SWOT Analysis of Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide 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 Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide 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 Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide 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 Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide 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 Reboot Systems' Refurbished Computers: A Frugal Solution for Digital Divide 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 Computers Divide needs to make to build a sustainable competitive advantage.
