This case escribes the antitrust prosecutions in the United States and abroad of the international bulk vitamins cartel. Both the civil and criminal fines were historically high, and it was the first time the United States prosecuted foreign nationals for U.S. criminal antitrust charges. It also details allegations of price-fixing by NASDAQ securities traders, which began when an academic paper accused NASDAQ market makers of avoiding quotes with odd-numbered increments. The remaining vignette provides an account of the price-fixing scandal involving Christie's and Sotheby's fine-art auction houses.
Swot Analysis of "Price-Fixing Vignettes" written by Guhan Subramanian, Michelle Kalka includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Fixing Nasdaq facing as an external strategic factors. Some of the topics covered in Price-Fixing Vignettes case study are - Strategic Management Strategies, Competition, Negotiations, Pricing, Regulation and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Price-Fixing Vignettes casestudy better are - – geopolitical disruptions, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, there is increasing trade war between United States & China,
there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Price-Fixing Vignettes
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Price-Fixing Vignettes case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fixing Nasdaq, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fixing Nasdaq 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 Price-Fixing Vignettes can be done for the following purposes –
1. Strategic planning using facts provided in Price-Fixing Vignettes case study
2. Improving business portfolio management of Fixing Nasdaq
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 Fixing Nasdaq
Strengths Price-Fixing Vignettes | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fixing Nasdaq in Price-Fixing Vignettes Harvard Business Review case study are -
Organizational Resilience of Fixing Nasdaq
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Fixing Nasdaq does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Fixing Nasdaq 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.
Highly skilled collaborators
– Fixing Nasdaq 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 Price-Fixing Vignettes HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Fixing Nasdaq is present in almost all the verticals within the industry. This has provided firm in Price-Fixing Vignettes 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.
Low bargaining power of suppliers
– Suppliers of Fixing Nasdaq in the sector have low bargaining power. Price-Fixing Vignettes has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fixing Nasdaq to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Fixing Nasdaq 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Fixing Nasdaq digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fixing Nasdaq 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.
Successful track record of launching new products
– Fixing Nasdaq has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fixing Nasdaq 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.
High brand equity
– Fixing Nasdaq has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fixing Nasdaq to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– Price-Fixing Vignettes firm has clearly differentiated products in the market place. This has enabled Fixing Nasdaq to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Fixing Nasdaq to invest into research and development (R&D) and innovation.
Training and development
– Fixing Nasdaq has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Price-Fixing Vignettes 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.
Analytics focus
– Fixing Nasdaq 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 Guhan Subramanian, Michelle Kalka 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.
Weaknesses Price-Fixing Vignettes | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Price-Fixing Vignettes are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Price-Fixing Vignettes, it seems that the employees of Fixing Nasdaq 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.
Skills based hiring
– The stress on hiring functional specialists at Fixing Nasdaq 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.
Capital Spending Reduction
– Even during the low interest decade, Fixing Nasdaq 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Price-Fixing Vignettes, is just above the industry average. Fixing Nasdaq 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 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 Fixing Nasdaq supply chain. Even after few cautionary changes mentioned in the HBR case study - Price-Fixing Vignettes, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fixing Nasdaq vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Price-Fixing Vignettes, 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 Fixing Nasdaq is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Fixing Nasdaq needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fixing Nasdaq to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Price-Fixing Vignettes 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 Fixing Nasdaq has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Fixing Nasdaq, firm in the HBR case study Price-Fixing Vignettes needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Price-Fixing Vignettes 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 Fixing Nasdaq 's lucrative customers.
Need for greater diversity
– Fixing Nasdaq 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.
Opportunities Price-Fixing Vignettes | 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 Price-Fixing Vignettes are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Fixing Nasdaq 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fixing Nasdaq 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, Price-Fixing Vignettes, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Fixing Nasdaq 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fixing Nasdaq is facing challenges because of the dominance of functional experts in the organization. Price-Fixing Vignettes 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.
Learning at scale
– Online learning technologies has now opened space for Fixing Nasdaq 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.
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 Fixing Nasdaq in the consumer business. Now Fixing Nasdaq can target international markets with far fewer capital restrictions requirements than the existing system.
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 Fixing Nasdaq 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 Fixing Nasdaq has opened avenues for new revenue streams for the organization in the industry. This can help Fixing Nasdaq to build a more holistic ecosystem as suggested in the Price-Fixing Vignettes case study. Fixing Nasdaq 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
– Fixing Nasdaq 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 Price-Fixing Vignettes - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fixing Nasdaq to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fixing Nasdaq can use these opportunities to build new business models that can help the communities that Fixing Nasdaq operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Buying journey improvements
– Fixing Nasdaq can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Price-Fixing Vignettes 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fixing Nasdaq 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 Fixing Nasdaq to hire the very best people irrespective of their geographical location.
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. Fixing Nasdaq can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Price-Fixing Vignettes External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Price-Fixing Vignettes are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Price-Fixing Vignettes, Fixing Nasdaq 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Fixing Nasdaq with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Fixing Nasdaq has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Fixing Nasdaq 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.
Increasing wage structure of Fixing Nasdaq
– 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 Fixing Nasdaq.
Shortening product life cycle
– it is one of the major threat that Fixing Nasdaq is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Fixing Nasdaq 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.
Stagnating economy with rate increase
– Fixing Nasdaq 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.
High dependence on third party suppliers
– Fixing Nasdaq 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.
Regulatory challenges
– Fixing Nasdaq 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, Fixing Nasdaq 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 Price-Fixing Vignettes .
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 Fixing Nasdaq in the Strategy & Execution sector and impact the bottomline 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 Fixing Nasdaq 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.
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.
Weighted SWOT Analysis of Price-Fixing Vignettes 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 Price-Fixing Vignettes 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 Price-Fixing Vignettes 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 Price-Fixing Vignettes 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 Price-Fixing Vignettes 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 Fixing Nasdaq needs to make to build a sustainable competitive advantage.
