Case Study Description of Wikipedia: Project Esperanza
In October 2006, Wikipedia was the largest volunteer-run on-line encyclopedia which could be freely read and edited by anyone with internet access. Within almost six years of its founding in 2001, the project had attracted hundreds of thousands of editors who had written over 1.2 million articles in English alone. Almost 10 percent of world-wide internet users accessed Wikipedia at least once a month. Just as Wales was stepping down, the editor community was collecting opinions to decide whether to close down an informal association of Wikipedia editors called Esperanza. Some Wikipedia editors, including some of the most prolific ones, really enjoyed the programs. Others firmly believed that Esperanza made editors socialize at the expense of creating content for the encyclopedia. As the editor community was making the final decision on what to do with Esperanza, observers could not help but wonder what effect the decision would have on the types of editors Wikipedia would attract and the content they would produce.
Authors :: Mikolaj Jan Piskorski, Andreea Gorbatai, Tiona Zuzul
Swot Analysis of "Wikipedia: Project Esperanza" written by Mikolaj Jan Piskorski, Andreea Gorbatai, Tiona Zuzul includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wikipedia Esperanza facing as an external strategic factors. Some of the topics covered in Wikipedia: Project Esperanza case study are - Strategic Management Strategies, Social platforms and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Wikipedia: Project Esperanza casestudy better are - – wage bills are increasing, geopolitical disruptions, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , technology disruption, increasing energy prices,
there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Wikipedia: Project Esperanza
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Wikipedia: Project Esperanza case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wikipedia Esperanza, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wikipedia Esperanza 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 Wikipedia: Project Esperanza can be done for the following purposes –
1. Strategic planning using facts provided in Wikipedia: Project Esperanza case study
2. Improving business portfolio management of Wikipedia Esperanza
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 Wikipedia Esperanza
Strengths Wikipedia: Project Esperanza | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wikipedia Esperanza in Wikipedia: Project Esperanza Harvard Business Review case study are -
Learning organization
- Wikipedia Esperanza 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 Wikipedia Esperanza is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Wikipedia: Project Esperanza Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Wikipedia Esperanza in the sector have low bargaining power. Wikipedia: Project Esperanza has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wikipedia Esperanza to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Wikipedia: Project Esperanza 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.
Ability to recruit top talent
– Wikipedia Esperanza is one of the leading recruiters in the industry. Managers in the Wikipedia: Project Esperanza are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Wikipedia Esperanza has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Wikipedia Esperanza has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Innovation driven organization
– Wikipedia Esperanza is one of the most innovative firm in sector. Manager in Wikipedia: Project Esperanza Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Wikipedia Esperanza
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wikipedia Esperanza does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Wikipedia Esperanza in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Wikipedia Esperanza 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 Wikipedia: Project Esperanza - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Wikipedia Esperanza 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.
Training and development
– Wikipedia Esperanza has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Wikipedia: Project Esperanza Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Wikipedia Esperanza digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wikipedia Esperanza 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.
Weaknesses Wikipedia: Project Esperanza | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Wikipedia: Project Esperanza are -
Slow to strategic competitive environment developments
– As Wikipedia: Project Esperanza HBR case study mentions - Wikipedia Esperanza 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.
No frontier risks strategy
– After analyzing the HBR case study Wikipedia: Project Esperanza, 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.
Lack of clear differentiation of Wikipedia Esperanza products
– To increase the profitability and margins on the products, Wikipedia Esperanza needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Wikipedia Esperanza is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Wikipedia Esperanza needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Wikipedia Esperanza to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Wikipedia: Project Esperanza, is just above the industry average. Wikipedia Esperanza needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Wikipedia: Project Esperanza 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 Wikipedia Esperanza has relatively successful track record of launching new products.
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 Wikipedia Esperanza supply chain. Even after few cautionary changes mentioned in the HBR case study - Wikipedia: Project Esperanza, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wikipedia Esperanza vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Wikipedia Esperanza 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.
Capital Spending Reduction
– Even during the low interest decade, Wikipedia Esperanza 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wikipedia Esperanza is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Wikipedia: Project Esperanza 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 bargaining power of channel partners
– Because of the regulatory requirements, Mikolaj Jan Piskorski, Andreea Gorbatai, Tiona Zuzul suggests that, Wikipedia Esperanza 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.
Opportunities Wikipedia: Project Esperanza | 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 Wikipedia: Project Esperanza are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wikipedia Esperanza can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Wikipedia Esperanza 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.
Better consumer reach
– The expansion of the 5G network will help Wikipedia Esperanza to increase its market reach. Wikipedia Esperanza 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wikipedia Esperanza is facing challenges because of the dominance of functional experts in the organization. Wikipedia: Project Esperanza 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.
Creating value in data economy
– The success of analytics program of Wikipedia Esperanza has opened avenues for new revenue streams for the organization in the industry. This can help Wikipedia Esperanza to build a more holistic ecosystem as suggested in the Wikipedia: Project Esperanza case study. Wikipedia Esperanza 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
– Wikipedia Esperanza 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 Wikipedia: Project Esperanza - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Wikipedia Esperanza to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Wikipedia Esperanza 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.
Building a culture of innovation
– managers at Wikipedia Esperanza 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, Wikipedia Esperanza can use these opportunities to build new business models that can help the communities that Wikipedia Esperanza operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Wikipedia Esperanza can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Wikipedia Esperanza can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Wikipedia Esperanza 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.
Manufacturing automation
– Wikipedia Esperanza 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.
Threats Wikipedia: Project Esperanza External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Wikipedia: Project Esperanza are -
Increasing wage structure of Wikipedia Esperanza
– 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 Wikipedia Esperanza.
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.
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.
Regulatory challenges
– Wikipedia Esperanza 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wikipedia Esperanza 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 Wikipedia: Project Esperanza .
High dependence on third party suppliers
– Wikipedia Esperanza 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.
Stagnating economy with rate increase
– Wikipedia Esperanza 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
– Wikipedia Esperanza 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. Wikipedia Esperanza can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Wikipedia Esperanza can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Wikipedia Esperanza business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Wikipedia Esperanza is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Wikipedia Esperanza has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Wikipedia Esperanza 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Wikipedia: Project Esperanza, Wikipedia Esperanza 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 .
Weighted SWOT Analysis of Wikipedia: Project Esperanza 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 Wikipedia: Project Esperanza 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 Wikipedia: Project Esperanza 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 Wikipedia: Project Esperanza 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 Wikipedia: Project Esperanza 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 Wikipedia Esperanza needs to make to build a sustainable competitive advantage.