Microsoft's Acquisition of Sendit (C): The Integration Challenge SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Microsoft's Acquisition of Sendit (C): The Integration Challenge
The case describes Microsoft's first significant acquisition in Europe and its first in the telecom equipment (software) market. SendIt is a publicly listed Swedish start-up, which offers the only Windows based solutions to the IP-based mobile phone services market. The acquisition starts in high tone, loses momentum and is finally integrated with some degree of success.
Swot Analysis of "Microsoft's Acquisition of Sendit (C): The Integration Challenge" written by Maurizio Zollo, Robert J. Crawford includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sendit Microsoft's facing as an external strategic factors. Some of the topics covered in Microsoft's Acquisition of Sendit (C): The Integration Challenge case study are - Strategic Management Strategies, Financial analysis, Mergers & acquisitions, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Microsoft's Acquisition of Sendit (C): The Integration Challenge casestudy better are - – there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, wage bills are increasing, increasing household debt because of falling income levels, increasing commodity prices, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion,
central banks are concerned over increasing inflation, geopolitical disruptions, etc
Introduction to SWOT Analysis of Microsoft's Acquisition of Sendit (C): The Integration Challenge
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Microsoft's Acquisition of Sendit (C): The Integration Challenge case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sendit Microsoft's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sendit Microsoft's 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 Microsoft's Acquisition of Sendit (C): The Integration Challenge can be done for the following purposes –
1. Strategic planning using facts provided in Microsoft's Acquisition of Sendit (C): The Integration Challenge case study
2. Improving business portfolio management of Sendit Microsoft's
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 Sendit Microsoft's
Strengths Microsoft's Acquisition of Sendit (C): The Integration Challenge | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sendit Microsoft's in Microsoft's Acquisition of Sendit (C): The Integration Challenge Harvard Business Review case study are -
Successful track record of launching new products
– Sendit Microsoft's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sendit Microsoft's 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.
Learning organization
- Sendit Microsoft's 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 Sendit Microsoft's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Microsoft's Acquisition of Sendit (C): The Integration Challenge Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Sendit Microsoft's is one of the most innovative firm in sector. Manager in Microsoft's Acquisition of Sendit (C): The Integration Challenge Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Sendit Microsoft's 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.
Strong track record of project management
– Sendit Microsoft's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Sendit Microsoft's 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Microsoft's Acquisition of Sendit (C): The Integration Challenge firm has clearly differentiated products in the market place. This has enabled Sendit Microsoft's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Sendit Microsoft's to invest into research and development (R&D) and innovation.
Analytics focus
– Sendit Microsoft's 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 Maurizio Zollo, Robert J. Crawford 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.
Highly skilled collaborators
– Sendit Microsoft's 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 Microsoft's Acquisition of Sendit (C): The Integration Challenge HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Sendit Microsoft's is one of the leading recruiters in the industry. Managers in the Microsoft's Acquisition of Sendit (C): The Integration Challenge are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Microsoft's Acquisition of Sendit (C): The Integration Challenge 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Sendit Microsoft's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sendit Microsoft's 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 Microsoft's Acquisition of Sendit (C): The Integration Challenge | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Microsoft's Acquisition of Sendit (C): The Integration Challenge are -
Aligning sales with marketing
– It come across in the case study Microsoft's Acquisition of Sendit (C): The Integration Challenge 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 Microsoft's Acquisition of Sendit (C): The Integration Challenge can leverage the sales team experience to cultivate customer relationships as Sendit Microsoft's is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Microsoft's Acquisition of Sendit (C): The Integration Challenge HBR case study mentions - Sendit Microsoft's 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Sendit Microsoft's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Microsoft's Acquisition of Sendit (C): The Integration Challenge can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Sendit Microsoft's products
– To increase the profitability and margins on the products, Sendit Microsoft's needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Microsoft's Acquisition of Sendit (C): The Integration Challenge, it seems that the employees of Sendit Microsoft's 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.
No frontier risks strategy
– After analyzing the HBR case study Microsoft's Acquisition of Sendit (C): The Integration Challenge, 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Microsoft's Acquisition of Sendit (C): The Integration Challenge 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 Sendit Microsoft's 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Sendit Microsoft's is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Sendit Microsoft's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sendit Microsoft's to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Sendit Microsoft's 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.
Products dominated business model
– Even though Sendit Microsoft's has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Microsoft's Acquisition of Sendit (C): The Integration Challenge should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Sendit Microsoft's 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.
Opportunities Microsoft's Acquisition of Sendit (C): The Integration Challenge | 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 Microsoft's Acquisition of Sendit (C): The Integration Challenge are -
Manufacturing automation
– Sendit Microsoft's 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sendit Microsoft's 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, Microsoft's Acquisition of Sendit (C): The Integration Challenge, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Sendit Microsoft's has opened avenues for new revenue streams for the organization in the industry. This can help Sendit Microsoft's to build a more holistic ecosystem as suggested in the Microsoft's Acquisition of Sendit (C): The Integration Challenge case study. Sendit Microsoft's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sendit Microsoft's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Sendit Microsoft's 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 Sendit Microsoft's to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sendit Microsoft's is facing challenges because of the dominance of functional experts in the organization. Microsoft's Acquisition of Sendit (C): The Integration Challenge 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 Sendit Microsoft's to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Sendit Microsoft's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Sendit Microsoft's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Microsoft's Acquisition of Sendit (C): The Integration Challenge 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.
Developing new processes and practices
– Sendit Microsoft's 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.
Better consumer reach
– The expansion of the 5G network will help Sendit Microsoft's to increase its market reach. Sendit Microsoft's 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.
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. Sendit Microsoft's 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. Sendit Microsoft's 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.
Using analytics as competitive advantage
– Sendit Microsoft's 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 Microsoft's Acquisition of Sendit (C): The Integration Challenge - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sendit Microsoft's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Microsoft's Acquisition of Sendit (C): The Integration Challenge External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Microsoft's Acquisition of Sendit (C): The Integration Challenge are -
Increasing wage structure of Sendit Microsoft's
– 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 Sendit Microsoft's.
Technology acceleration in Forth Industrial Revolution
– Sendit Microsoft's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Sendit Microsoft's 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.
Shortening product life cycle
– it is one of the major threat that Sendit Microsoft's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Sendit Microsoft's business can come under increasing regulations regarding data privacy, data security, etc.
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. Sendit Microsoft's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Sendit Microsoft's 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.
Regulatory challenges
– Sendit Microsoft's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Microsoft's Acquisition of Sendit (C): The Integration Challenge, Sendit Microsoft's 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 .
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. Sendit Microsoft's 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.
Consumer confidence and its impact on Sendit Microsoft's 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, Sendit Microsoft's 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 Microsoft's Acquisition of Sendit (C): The Integration Challenge .
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 Sendit Microsoft's.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sendit Microsoft's in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Weighted SWOT Analysis of Microsoft's Acquisition of Sendit (C): The Integration Challenge 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 Microsoft's Acquisition of Sendit (C): The Integration Challenge 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 Microsoft's Acquisition of Sendit (C): The Integration Challenge 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 Microsoft's Acquisition of Sendit (C): The Integration Challenge 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 Microsoft's Acquisition of Sendit (C): The Integration Challenge 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 Sendit Microsoft's needs to make to build a sustainable competitive advantage.
