WebEx Communications (A): Navigating Through a Turbulent Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of WebEx Communications (A): Navigating Through a Turbulent Market
WebEx Communications, founded in 1996 by Min Zhu and Subrah Iyar, was an Internet-based, carrier-class communications services provider of web conferences and meetings. WebEx's online, real-time, interactive, multimedia communications services allowed its customers to communicate via voice conferencing, video conferencing, and data communication. With data communication, using just a standard web browser, multiple users could share and remotely control software applications and desktops, share and edit documents and presentations, remotely browse the web together, chat live, write on whiteboards, record and play back sessions, and transfer files. The company's services improved the efficiency of many activities: meetings, sales, marketing, training, customer support, etc. The company's early performance was impressive, but analysts had recently pointed out that the revenue growth rate was slowing. WebEx was considering a number of strategies to boost sales: expand the product line vertically to target specific end-user groups like health care or finance; increase partnering agreements with resellers; focus more on enterprise customers, which had the potential for hub-and-spoke acquisition of additional customers; or expand internationally (international sales accounted for about 4% of revenues in 2002). Also, Min and Subrah had to consider the repercussions of some recent news. On January 21, 2003, Microsoft announced it was acquiring PlaceWare, WebEx's most significant competitor.
Swot Analysis of "WebEx Communications (A): Navigating Through a Turbulent Market" written by George Foster, Erin Yurday includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Webex Subrah facing as an external strategic factors. Some of the topics covered in WebEx Communications (A): Navigating Through a Turbulent Market case study are - Strategic Management Strategies, Marketing, Meetings, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the WebEx Communications (A): Navigating Through a Turbulent Market casestudy better are - – wage bills are increasing, technology disruption, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, there is backlash against globalization, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of WebEx Communications (A): Navigating Through a Turbulent Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in WebEx Communications (A): Navigating Through a Turbulent Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Webex Subrah, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Webex Subrah 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 WebEx Communications (A): Navigating Through a Turbulent Market can be done for the following purposes –
1. Strategic planning using facts provided in WebEx Communications (A): Navigating Through a Turbulent Market case study
2. Improving business portfolio management of Webex Subrah
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 Webex Subrah
Strengths WebEx Communications (A): Navigating Through a Turbulent Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Webex Subrah in WebEx Communications (A): Navigating Through a Turbulent Market Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the WebEx Communications (A): Navigating Through a Turbulent Market 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.
Organizational Resilience of Webex Subrah
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Webex Subrah does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– WebEx Communications (A): Navigating Through a Turbulent Market firm has clearly differentiated products in the market place. This has enabled Webex Subrah to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Webex Subrah to invest into research and development (R&D) and innovation.
Learning organization
- Webex Subrah 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 Webex Subrah is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in WebEx Communications (A): Navigating Through a Turbulent Market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Webex Subrah 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 WebEx Communications (A): Navigating Through a Turbulent Market 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
– Webex Subrah has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Webex Subrah 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.
Ability to recruit top talent
– Webex Subrah is one of the leading recruiters in the industry. Managers in the WebEx Communications (A): Navigating Through a Turbulent Market are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Webex Subrah digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Webex Subrah 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.
High switching costs
– The high switching costs that Webex Subrah 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.
Diverse revenue streams
– Webex Subrah is present in almost all the verticals within the industry. This has provided firm in WebEx Communications (A): Navigating Through a Turbulent Market 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.
Strong track record of project management
– Webex Subrah 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 Webex Subrah 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.
Weaknesses WebEx Communications (A): Navigating Through a Turbulent Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of WebEx Communications (A): Navigating Through a Turbulent Market 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 Webex Subrah supply chain. Even after few cautionary changes mentioned in the HBR case study - WebEx Communications (A): Navigating Through a Turbulent Market, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Webex Subrah vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Webex Subrah 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 Webex Subrah is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Webex Subrah needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Webex Subrah to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Webex Subrah 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.
Aligning sales with marketing
– It come across in the case study WebEx Communications (A): Navigating Through a Turbulent Market 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 WebEx Communications (A): Navigating Through a Turbulent Market can leverage the sales team experience to cultivate customer relationships as Webex Subrah is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Webex Subrah is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study WebEx Communications (A): Navigating Through a Turbulent Market can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Webex Subrah 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.
High operating costs
– Compare to the competitors, firm in the HBR case study WebEx Communications (A): Navigating Through a Turbulent Market 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 Webex Subrah 's lucrative customers.
Slow to strategic competitive environment developments
– As WebEx Communications (A): Navigating Through a Turbulent Market HBR case study mentions - Webex Subrah 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.
Low market penetration in new markets
– Outside its home market of Webex Subrah, firm in the HBR case study WebEx Communications (A): Navigating Through a Turbulent Market needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the WebEx Communications (A): Navigating Through a Turbulent Market HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Webex Subrah has relatively successful track record of launching new products.
Opportunities WebEx Communications (A): Navigating Through a Turbulent Market | 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 WebEx Communications (A): Navigating Through a Turbulent Market are -
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. Webex Subrah 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. Webex Subrah 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.
Building a culture of innovation
– managers at Webex Subrah 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Webex Subrah can use these opportunities to build new business models that can help the communities that Webex Subrah operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Manufacturing automation
– Webex Subrah 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.
Learning at scale
– Online learning technologies has now opened space for Webex Subrah 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.
Using analytics as competitive advantage
– Webex Subrah 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 WebEx Communications (A): Navigating Through a Turbulent Market - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Webex Subrah 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 Webex Subrah can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Webex Subrah 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.
Creating value in data economy
– The success of analytics program of Webex Subrah has opened avenues for new revenue streams for the organization in the industry. This can help Webex Subrah to build a more holistic ecosystem as suggested in the WebEx Communications (A): Navigating Through a Turbulent Market case study. Webex Subrah can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Webex Subrah can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Webex Subrah 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 Webex Subrah to hire the very best people irrespective of their geographical location.
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 Webex Subrah in the consumer business. Now Webex Subrah can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Webex Subrah can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. WebEx Communications (A): Navigating Through a Turbulent Market 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.
Threats WebEx Communications (A): Navigating Through a Turbulent Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study WebEx Communications (A): Navigating Through a Turbulent Market are -
Shortening product life cycle
– it is one of the major threat that Webex Subrah is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Webex Subrah has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Webex Subrah 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.
Stagnating economy with rate increase
– Webex Subrah 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.
Increasing wage structure of Webex Subrah
– 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 Webex Subrah.
Regulatory challenges
– Webex Subrah 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.
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. Webex Subrah 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.
Environmental challenges
– Webex Subrah 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. Webex Subrah can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Webex Subrah with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Webex Subrah high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Consumer confidence and its impact on Webex Subrah 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, Webex Subrah 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 WebEx Communications (A): Navigating Through a Turbulent Market .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study WebEx Communications (A): Navigating Through a Turbulent Market, Webex Subrah 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 .
Weighted SWOT Analysis of WebEx Communications (A): Navigating Through a Turbulent Market 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 WebEx Communications (A): Navigating Through a Turbulent Market 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 WebEx Communications (A): Navigating Through a Turbulent Market 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 WebEx Communications (A): Navigating Through a Turbulent Market 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 WebEx Communications (A): Navigating Through a Turbulent Market 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 Webex Subrah needs to make to build a sustainable competitive advantage.
