Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano
Like many online services, IRC-Hispano, the world's largest Spanish-language chat organization, has many customers but sees few revenues. As an association, its structure presents many limitations and hurdles to overcome involving investing in technology platform updates and generating ideas and initiatives to monetize the use community.
Authors :: F. Asis Martinez-Jerez, Fernando Borrajo, Joshua Bellin
Swot Analysis of "Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano" written by F. Asis Martinez-Jerez, Fernando Borrajo, Joshua Bellin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Irc Hispano facing as an external strategic factors. Some of the topics covered in Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano case study are - Strategic Management Strategies, Customer service, Customers, Financial analysis, IT and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies,
there is increasing trade war between United States & China, wage bills are increasing, etc
Introduction to SWOT Analysis of Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Irc Hispano, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Irc Hispano 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 Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano can be done for the following purposes –
1. Strategic planning using facts provided in Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano case study
2. Improving business portfolio management of Irc Hispano
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 Irc Hispano
Strengths Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Irc Hispano in Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano Harvard Business Review case study are -
Effective Research and Development (R&D)
– Irc Hispano 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 Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Irc Hispano 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 Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano 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 Irc Hispano digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Irc Hispano 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.
Ability to lead change in Strategy & Execution field
– Irc Hispano 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 Irc Hispano in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Irc Hispano is one of the leading recruiters in the industry. Managers in the Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Irc Hispano 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.
Innovation driven organization
– Irc Hispano is one of the most innovative firm in sector. Manager in Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Irc Hispano 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 Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Irc Hispano 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 F. Asis Martinez-Jerez, Fernando Borrajo, Joshua Bellin 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.
Successful track record of launching new products
– Irc Hispano has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Irc Hispano 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano firm has clearly differentiated products in the market place. This has enabled Irc Hispano to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Irc Hispano to invest into research and development (R&D) and innovation.
Weaknesses Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano are -
Slow decision making process
– As mentioned earlier in the report, Irc Hispano has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Irc Hispano even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Capital Spending Reduction
– Even during the low interest decade, Irc Hispano 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.
Aligning sales with marketing
– It come across in the case study Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano 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 Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano can leverage the sales team experience to cultivate customer relationships as Irc Hispano is planning to shift buying processes online.
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 Irc Hispano supply chain. Even after few cautionary changes mentioned in the HBR case study - Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Irc Hispano vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Irc Hispano 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.
Skills based hiring
– The stress on hiring functional specialists at Irc Hispano 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.
Interest costs
– Compare to the competition, Irc Hispano 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.
Increasing silos among functional specialists
– The organizational structure of Irc Hispano is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Irc Hispano needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Irc Hispano to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Irc Hispano, firm in the HBR case study Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Irc Hispano is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano, is just above the industry average. Irc Hispano 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.
Opportunities Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano | 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 Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Irc Hispano is facing challenges because of the dominance of functional experts in the organization. Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano 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. Irc Hispano can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Irc Hispano 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.
Better consumer reach
– The expansion of the 5G network will help Irc Hispano to increase its market reach. Irc Hispano 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.
Developing new processes and practices
– Irc Hispano 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.
Leveraging digital technologies
– Irc Hispano 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Irc Hispano 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Irc Hispano 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 Irc Hispano to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Irc Hispano 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 Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Irc Hispano 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, Irc Hispano can use these opportunities to build new business models that can help the communities that Irc Hispano operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Buying journey improvements
– Irc Hispano can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Irc Hispano 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, Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Irc Hispano 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.
Threats Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Irc Hispano with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Irc Hispano.
Regulatory challenges
– Irc Hispano 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, Irc Hispano 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 Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano .
Shortening product life cycle
– it is one of the major threat that Irc Hispano is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Irc Hispano 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.
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. Irc Hispano can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Technology acceleration in Forth Industrial Revolution
– Irc Hispano has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Irc Hispano 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 Irc Hispano
– 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 Irc Hispano.
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 Irc Hispano business can come under increasing regulations regarding data privacy, data security, 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. Irc Hispano 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.
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.
Weighted SWOT Analysis of Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano 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 Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano 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 Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano 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 Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano 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 Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano 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 Irc Hispano needs to make to build a sustainable competitive advantage.
