Rambus, Inc.: Commercializing the Billion Dollar Idea (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Rambus, Inc.: Commercializing the Billion Dollar Idea (A)
Rambus, Inc. was founded to develop a new type of high-speed memory chip technology to enable DRAMs to keep up with ever-faster microprocessors. After developing the technology, Rambus chose an unusual licensing approach to commercialize it. This case series describes the challenges facing Rambus as it attempts to make its technology a new, dominant standard in PCs, video game consoles, and devices that use DRAMs. Subsequent moves and countermoves are described. A rewritten version of an earlier case.
Swot Analysis of "Rambus, Inc.: Commercializing the Billion Dollar Idea (A)" written by Brian S. Silverman, Briana Huntsberger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rambus Drams facing as an external strategic factors. Some of the topics covered in Rambus, Inc.: Commercializing the Billion Dollar Idea (A) case study are - Strategic Management Strategies, Competition, Innovation, Intellectual property, Joint ventures, Marketing, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Rambus, Inc.: Commercializing the Billion Dollar Idea (A) casestudy better are - – wage bills are increasing, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , increasing transportation and logistics costs,
there is backlash against globalization, technology disruption, etc
Introduction to SWOT Analysis of Rambus, Inc.: Commercializing the Billion Dollar Idea (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Rambus, Inc.: Commercializing the Billion Dollar Idea (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rambus Drams, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rambus Drams 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 Rambus, Inc.: Commercializing the Billion Dollar Idea (A) can be done for the following purposes –
1. Strategic planning using facts provided in Rambus, Inc.: Commercializing the Billion Dollar Idea (A) case study
2. Improving business portfolio management of Rambus Drams
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 Rambus Drams
Strengths Rambus, Inc.: Commercializing the Billion Dollar Idea (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rambus Drams in Rambus, Inc.: Commercializing the Billion Dollar Idea (A) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Rambus Drams in the sector have low bargaining power. Rambus, Inc.: Commercializing the Billion Dollar Idea (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rambus Drams to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Strategy & Execution field
– Rambus Drams 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 Rambus Drams 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 Rambus Drams in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Rambus Drams has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Rambus, Inc.: Commercializing the Billion Dollar Idea (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.
Cross disciplinary teams
– Horizontal connected teams at the Rambus Drams 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.
Diverse revenue streams
– Rambus Drams is present in almost all the verticals within the industry. This has provided firm in Rambus, Inc.: Commercializing the Billion Dollar Idea (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.
Effective Research and Development (R&D)
– Rambus Drams 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 Rambus, Inc.: Commercializing the Billion Dollar Idea (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.
Organizational Resilience of Rambus Drams
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Rambus Drams does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Rambus Drams 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
– Rambus Drams has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rambus Drams to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Rambus Drams has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rambus Drams 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Rambus Drams digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Rambus Drams 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 Rambus, Inc.: Commercializing the Billion Dollar Idea (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Rambus, Inc.: Commercializing the Billion Dollar Idea (A) are -
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 Rambus Drams supply chain. Even after few cautionary changes mentioned in the HBR case study - Rambus, Inc.: Commercializing the Billion Dollar Idea (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Rambus Drams vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Rambus Drams 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.
Interest costs
– Compare to the competition, Rambus Drams 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.
No frontier risks strategy
– After analyzing the HBR case study Rambus, Inc.: Commercializing the Billion Dollar Idea (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.
Aligning sales with marketing
– It come across in the case study Rambus, Inc.: Commercializing the Billion Dollar Idea (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 Rambus, Inc.: Commercializing the Billion Dollar Idea (A) can leverage the sales team experience to cultivate customer relationships as Rambus Drams is planning to shift buying processes online.
High cash cycle compare to competitors
Rambus Drams 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.
Lack of clear differentiation of Rambus Drams products
– To increase the profitability and margins on the products, Rambus Drams needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Rambus Drams 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 strategic competitive environment developments
– As Rambus, Inc.: Commercializing the Billion Dollar Idea (A) HBR case study mentions - Rambus Drams 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 operating costs
– Compare to the competitors, firm in the HBR case study Rambus, Inc.: Commercializing the Billion Dollar Idea (A) 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 Rambus Drams 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Rambus, Inc.: Commercializing the Billion Dollar Idea (A), in the dynamic environment Rambus Drams has struggled to respond to the nimble upstart competition. Rambus Drams has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Rambus, Inc.: Commercializing the Billion Dollar Idea (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 Rambus, Inc.: Commercializing the Billion Dollar Idea (A) are -
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. Rambus Drams can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Rambus Drams 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.
Learning at scale
– Online learning technologies has now opened space for Rambus Drams 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Rambus Drams is facing challenges because of the dominance of functional experts in the organization. Rambus, Inc.: Commercializing the Billion Dollar Idea (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.
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. Rambus Drams 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. Rambus Drams 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Rambus Drams can use these opportunities to build new business models that can help the communities that Rambus Drams operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Building a culture of innovation
– managers at Rambus Drams 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 Rambus Drams in the consumer business. Now Rambus Drams can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Rambus Drams to increase its market reach. Rambus Drams 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.
Leveraging digital technologies
– Rambus Drams 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.
Creating value in data economy
– The success of analytics program of Rambus Drams has opened avenues for new revenue streams for the organization in the industry. This can help Rambus Drams to build a more holistic ecosystem as suggested in the Rambus, Inc.: Commercializing the Billion Dollar Idea (A) case study. Rambus Drams can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Rambus Drams 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Rambus Drams can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Rambus, Inc.: Commercializing the Billion Dollar Idea (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Rambus, Inc.: Commercializing the Billion Dollar Idea (A) are -
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.
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 Rambus Drams business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Rambus Drams 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Rambus Drams 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 Rambus, Inc.: Commercializing the Billion Dollar Idea (A) .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Rambus Drams 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.
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. Rambus Drams 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 Rambus Drams with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Rambus Drams 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.
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.
Environmental challenges
– Rambus Drams 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. Rambus Drams can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Shortening product life cycle
– it is one of the major threat that Rambus Drams 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 Rambus Drams
– 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 Rambus Drams.
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. Rambus Drams can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Rambus, Inc.: Commercializing the Billion Dollar Idea (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 Rambus, Inc.: Commercializing the Billion Dollar Idea (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 Rambus, Inc.: Commercializing the Billion Dollar Idea (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 Rambus, Inc.: Commercializing the Billion Dollar Idea (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 Rambus, Inc.: Commercializing the Billion Dollar Idea (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 Rambus Drams needs to make to build a sustainable competitive advantage.
