Case Study Description of Transforming Verizon 2015: Going Above the Network
In 2015, the Chairman and CEO of Verizon Communications reflects on his four years leading the company and considers strategic repositioning for the future. Meanwhile, a rising leader within the organization, Marni Walden, leads change with a new, company-wide product development organization. Walden's group holds promise but must overcome cultural, structural, and technical barriers to innovating in a giant telecom. In the midst of change, executives debate the wisdom of Verizon's push into developing products and services that leverage its dominance in connectivity. Should Verizon go "above the network"?
Swot Analysis of "Transforming Verizon 2015: Going Above the Network" written by Rosabeth Moss Kanter, Daniel Fox includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Verizon Marni facing as an external strategic factors. Some of the topics covered in Transforming Verizon 2015: Going Above the Network case study are - Strategic Management Strategies, Innovation, IT, Leadership, Marketing, Organizational culture, Reorganization and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Transforming Verizon 2015: Going Above the Network casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, technology disruption, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, talent flight as more people leaving formal jobs,
banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Transforming Verizon 2015: Going Above the Network
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Transforming Verizon 2015: Going Above the Network case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Verizon Marni, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Verizon Marni 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 Transforming Verizon 2015: Going Above the Network can be done for the following purposes –
1. Strategic planning using facts provided in Transforming Verizon 2015: Going Above the Network case study
2. Improving business portfolio management of Verizon Marni
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 Verizon Marni
Strengths Transforming Verizon 2015: Going Above the Network | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Verizon Marni in Transforming Verizon 2015: Going Above the Network Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Verizon Marni digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Verizon Marni 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.
Learning organization
- Verizon Marni 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 Verizon Marni is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Transforming Verizon 2015: Going Above the Network Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Verizon Marni is one of the most innovative firm in sector. Manager in Transforming Verizon 2015: Going Above the Network Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Verizon Marni has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Verizon Marni to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Verizon Marni has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Transforming Verizon 2015: Going Above the Network 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.
Highly skilled collaborators
– Verizon Marni 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 Transforming Verizon 2015: Going Above the Network HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Verizon Marni has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Verizon Marni 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.
Low bargaining power of suppliers
– Suppliers of Verizon Marni in the sector have low bargaining power. Transforming Verizon 2015: Going Above the Network has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Verizon Marni to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Transforming Verizon 2015: Going Above the Network 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
– Verizon Marni is present in almost all the verticals within the industry. This has provided firm in Transforming Verizon 2015: Going Above the Network 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.
Superior customer experience
– The customer experience strategy of Verizon Marni in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Strategy & Execution field
– Verizon Marni 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 Verizon Marni in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Transforming Verizon 2015: Going Above the Network | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Transforming Verizon 2015: Going Above the Network are -
Lack of clear differentiation of Verizon Marni products
– To increase the profitability and margins on the products, Verizon Marni needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Transforming Verizon 2015: Going Above the Network 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 Verizon Marni 's lucrative customers.
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 Verizon Marni supply chain. Even after few cautionary changes mentioned in the HBR case study - Transforming Verizon 2015: Going Above the Network, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Verizon Marni vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Verizon Marni needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Transforming Verizon 2015: Going Above the Network, in the dynamic environment Verizon Marni has struggled to respond to the nimble upstart competition. Verizon Marni has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Verizon Marni, firm in the HBR case study Transforming Verizon 2015: Going Above the Network needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Verizon Marni 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.
Slow decision making process
– As mentioned earlier in the report, Verizon Marni 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. Verizon Marni 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Transforming Verizon 2015: Going Above the Network, is just above the industry average. Verizon Marni 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 Transforming Verizon 2015: Going Above the Network HBR case study mentions - Verizon Marni 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, Verizon Marni is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Transforming Verizon 2015: Going Above the Network can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Transforming Verizon 2015: Going Above the Network | 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 Transforming Verizon 2015: Going Above the Network are -
Building a culture of innovation
– managers at Verizon Marni 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Verizon Marni 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 Verizon Marni to hire the very best people irrespective of their geographical location.
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 Verizon Marni 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, Verizon Marni 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.
Manufacturing automation
– Verizon Marni 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.
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. Verizon Marni can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Verizon Marni 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.
Creating value in data economy
– The success of analytics program of Verizon Marni has opened avenues for new revenue streams for the organization in the industry. This can help Verizon Marni to build a more holistic ecosystem as suggested in the Transforming Verizon 2015: Going Above the Network case study. Verizon Marni can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Verizon Marni has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Verizon Marni is facing challenges because of the dominance of functional experts in the organization. Transforming Verizon 2015: Going Above the Network 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.
Using analytics as competitive advantage
– Verizon Marni 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 Transforming Verizon 2015: Going Above the Network - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Verizon Marni to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Verizon Marni can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Verizon Marni can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Transforming Verizon 2015: Going Above the Network External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Transforming Verizon 2015: Going Above the Network are -
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 Verizon Marni business can come under increasing regulations regarding data privacy, data security, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Verizon Marni needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Verizon Marni.
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. Verizon Marni 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.
Increasing wage structure of Verizon Marni
– 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 Verizon Marni.
Regulatory challenges
– Verizon Marni 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Verizon Marni with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Shortening product life cycle
– it is one of the major threat that Verizon Marni is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Verizon Marni in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Verizon Marni 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 Transforming Verizon 2015: Going Above the Network .
Environmental challenges
– Verizon Marni 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. Verizon Marni can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of Transforming Verizon 2015: Going Above the Network 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 Transforming Verizon 2015: Going Above the Network 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 Transforming Verizon 2015: Going Above the Network 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 Transforming Verizon 2015: Going Above the Network 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 Transforming Verizon 2015: Going Above the Network 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 Verizon Marni needs to make to build a sustainable competitive advantage.