Case Study Description of Blizzard v. bnetd.org: Managing Intellectual Property (A)
Personal computer game maker Blizzard filed a lawsuit in 2002 against the developers of the bnetd project. The bnetd project was a volunteer effort of game enthusiasts and programmers frustrated with difficulties encountered playing Blizzard's personal computer games on its 24-hour Battle.net online gaming service. Via reverse engineering of Blizzard's software, the bnetd developers created and disseminated a free open source software program that mimicked the Battle.net playing experience while improving on some of its deficiencies. Blizzard, one of the world's most successful PC game publishers and a part of international media conglomerate Vivendi Universal, charged the bnetd developers with breach of contract and various counts of intellectual property infringement. The defendants maintained that U.S. law, in an effort to spur innovation in the United States, protected their activities. Describes the events leading up to a court-ordered mediation session between the two parties in October 2003. Students are asked, as business managers, to determine the legal and non-legal alternatives available to Blizzard and the bnetd developers, and to decide which strategy to pursue from each party's perspective. http://www.gsb.stanford.edu/multimedia/flv/100618-Case-Blizzard1.html
Swot Analysis of "Blizzard v. bnetd.org: Managing Intellectual Property (A)" written by V. Brian Viard, Pamela Yatsko includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bnetd Blizzard facing as an external strategic factors. Some of the topics covered in Blizzard v. bnetd.org: Managing Intellectual Property (A) case study are - Strategic Management Strategies, Intellectual property, Internet, IT, Regulation and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Blizzard v. bnetd.org: Managing Intellectual Property (A) casestudy better are - – increasing transportation and logistics costs, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy,
central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Blizzard v. bnetd.org: Managing Intellectual Property (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Blizzard v. bnetd.org: Managing Intellectual Property (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bnetd Blizzard, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bnetd Blizzard 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 Blizzard v. bnetd.org: Managing Intellectual Property (A) can be done for the following purposes –
1. Strategic planning using facts provided in Blizzard v. bnetd.org: Managing Intellectual Property (A) case study
2. Improving business portfolio management of Bnetd Blizzard
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 Bnetd Blizzard
Strengths Blizzard v. bnetd.org: Managing Intellectual Property (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bnetd Blizzard in Blizzard v. bnetd.org: Managing Intellectual Property (A) Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Bnetd Blizzard 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
– Bnetd Blizzard has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Blizzard v. bnetd.org: Managing Intellectual Property (A) 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.
Strong track record of project management
– Bnetd Blizzard is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Blizzard v. bnetd.org: Managing Intellectual Property (A) 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.
Diverse revenue streams
– Bnetd Blizzard is present in almost all the verticals within the industry. This has provided firm in Blizzard v. bnetd.org: Managing Intellectual Property (A) 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.
Ability to recruit top talent
– Bnetd Blizzard is one of the leading recruiters in the industry. Managers in the Blizzard v. bnetd.org: Managing Intellectual Property (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Bnetd Blizzard 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.
Effective Research and Development (R&D)
– Bnetd Blizzard 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 Blizzard v. bnetd.org: Managing Intellectual Property (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Bnetd Blizzard in the sector have low bargaining power. Blizzard v. bnetd.org: Managing Intellectual Property (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bnetd Blizzard to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Strategy & Execution field
– Bnetd Blizzard 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 Bnetd Blizzard in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Bnetd Blizzard in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Bnetd Blizzard 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 V. Brian Viard, Pamela Yatsko 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 Blizzard v. bnetd.org: Managing Intellectual Property (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Blizzard v. bnetd.org: Managing Intellectual Property (A) are -
Aligning sales with marketing
– It come across in the case study Blizzard v. bnetd.org: Managing Intellectual Property (A) 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 Blizzard v. bnetd.org: Managing Intellectual Property (A) can leverage the sales team experience to cultivate customer relationships as Bnetd Blizzard is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, V. Brian Viard, Pamela Yatsko suggests that, Bnetd Blizzard 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.
Need for greater diversity
– Bnetd Blizzard 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.
Capital Spending Reduction
– Even during the low interest decade, Bnetd Blizzard 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 Bnetd Blizzard, firm in the HBR case study Blizzard v. bnetd.org: Managing Intellectual Property (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Bnetd Blizzard is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Bnetd Blizzard needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bnetd Blizzard to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Bnetd Blizzard products
– To increase the profitability and margins on the products, Bnetd Blizzard needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study Blizzard v. bnetd.org: Managing Intellectual Property (A), 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Blizzard v. bnetd.org: Managing Intellectual Property (A), is just above the industry average. Bnetd Blizzard 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.
Slow to strategic competitive environment developments
– As Blizzard v. bnetd.org: Managing Intellectual Property (A) HBR case study mentions - Bnetd Blizzard takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Skills based hiring
– The stress on hiring functional specialists at Bnetd Blizzard has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities Blizzard v. bnetd.org: Managing Intellectual Property (A) | 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 Blizzard v. bnetd.org: Managing Intellectual Property (A) are -
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 Bnetd Blizzard 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bnetd Blizzard 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 Bnetd Blizzard 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.
Building a culture of innovation
– managers at Bnetd Blizzard can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Bnetd Blizzard in the consumer business. Now Bnetd Blizzard can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bnetd Blizzard can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Bnetd Blizzard to increase its market reach. Bnetd Blizzard 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.
Using analytics as competitive advantage
– Bnetd Blizzard 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 Blizzard v. bnetd.org: Managing Intellectual Property (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bnetd Blizzard to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Bnetd Blizzard 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.
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. Bnetd Blizzard 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. Bnetd Blizzard 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bnetd Blizzard 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 Bnetd Blizzard to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bnetd Blizzard is facing challenges because of the dominance of functional experts in the organization. Blizzard v. bnetd.org: Managing Intellectual Property (A) 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.
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. Bnetd Blizzard can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Blizzard v. bnetd.org: Managing Intellectual Property (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Blizzard v. bnetd.org: Managing Intellectual Property (A) 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 Blizzard v. bnetd.org: Managing Intellectual Property (A), Bnetd Blizzard 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bnetd Blizzard 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.
High dependence on third party suppliers
– Bnetd Blizzard 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.
Consumer confidence and its impact on Bnetd Blizzard 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.
Stagnating economy with rate increase
– Bnetd Blizzard 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.
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.
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. Bnetd Blizzard 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bnetd Blizzard with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Bnetd Blizzard
– 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 Bnetd Blizzard.
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 Bnetd Blizzard.
Environmental challenges
– Bnetd Blizzard 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. Bnetd Blizzard can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bnetd Blizzard 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 Blizzard v. bnetd.org: Managing Intellectual Property (A) .
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 Bnetd Blizzard in the Strategy & Execution sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Blizzard v. bnetd.org: Managing Intellectual Property (A) 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 Blizzard v. bnetd.org: Managing Intellectual Property (A) 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 Blizzard v. bnetd.org: Managing Intellectual Property (A) 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 Blizzard v. bnetd.org: Managing Intellectual Property (A) 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 Blizzard v. bnetd.org: Managing Intellectual Property (A) 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 Bnetd Blizzard needs to make to build a sustainable competitive advantage.