Swot Analysis of "McCaw Cellular Communications, Inc. (E)" written by Elizabeth Olmsted Teisberg, Sharon Rossi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mccaw's Mccaw facing as an external strategic factors. Some of the topics covered in McCaw Cellular Communications, Inc. (E) case study are - Strategic Management Strategies, Financial management, IT, Managing uncertainty, Risk management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the McCaw Cellular Communications, Inc. (E) casestudy better are - – central banks are concerned over increasing inflation, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, wage bills are increasing,
geopolitical disruptions, increasing commodity prices, etc
Introduction to SWOT Analysis of McCaw Cellular Communications, Inc. (E)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in McCaw Cellular Communications, Inc. (E) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mccaw's Mccaw, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mccaw's Mccaw 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 McCaw Cellular Communications, Inc. (E) can be done for the following purposes –
1. Strategic planning using facts provided in McCaw Cellular Communications, Inc. (E) case study
2. Improving business portfolio management of Mccaw's Mccaw
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 Mccaw's Mccaw
Strengths McCaw Cellular Communications, Inc. (E) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mccaw's Mccaw in McCaw Cellular Communications, Inc. (E) Harvard Business Review case study are -
High brand equity
– Mccaw's Mccaw has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mccaw's Mccaw to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Mccaw's Mccaw is one of the most innovative firm in sector. Manager in McCaw Cellular Communications, Inc. (E) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Mccaw's Mccaw 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 Elizabeth Olmsted Teisberg, Sharon Rossi 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.
Operational resilience
– The operational resilience strategy in the McCaw Cellular Communications, Inc. (E) 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.
Ability to lead change in Strategy & Execution field
– Mccaw's Mccaw 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 Mccaw's Mccaw in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Mccaw's Mccaw
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mccaw's Mccaw does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Mccaw's Mccaw 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.
Sustainable margins compare to other players in Strategy & Execution industry
– McCaw Cellular Communications, Inc. (E) firm has clearly differentiated products in the market place. This has enabled Mccaw's Mccaw to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Mccaw's Mccaw to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Mccaw's Mccaw is one of the leading recruiters in the industry. Managers in the McCaw Cellular Communications, Inc. (E) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Mccaw's Mccaw has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mccaw's Mccaw 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 Mccaw's Mccaw in the sector have low bargaining power. McCaw Cellular Communications, Inc. (E) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mccaw's Mccaw to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Mccaw's Mccaw 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 McCaw Cellular Communications, Inc. (E) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses McCaw Cellular Communications, Inc. (E) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of McCaw Cellular Communications, Inc. (E) are -
Capital Spending Reduction
– Even during the low interest decade, Mccaw's Mccaw has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow decision making process
– As mentioned earlier in the report, Mccaw's Mccaw 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. Mccaw's Mccaw 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the McCaw Cellular Communications, Inc. (E) 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 Mccaw's Mccaw has relatively successful track record of launching new products.
Products dominated business model
– Even though Mccaw's Mccaw 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 - McCaw Cellular Communications, Inc. (E) should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Mccaw's Mccaw is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Mccaw's Mccaw needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mccaw's Mccaw to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As McCaw Cellular Communications, Inc. (E) HBR case study mentions - Mccaw's Mccaw 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.
Aligning sales with marketing
– It come across in the case study McCaw Cellular Communications, Inc. (E) 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 McCaw Cellular Communications, Inc. (E) can leverage the sales team experience to cultivate customer relationships as Mccaw's Mccaw is planning to shift buying processes online.
Need for greater diversity
– Mccaw's Mccaw 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.
High operating costs
– Compare to the competitors, firm in the HBR case study McCaw Cellular Communications, Inc. (E) 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 Mccaw's Mccaw 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Mccaw's Mccaw, firm in the HBR case study McCaw Cellular Communications, Inc. (E) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Mccaw's Mccaw 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.
Opportunities McCaw Cellular Communications, Inc. (E) | 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 McCaw Cellular Communications, Inc. (E) are -
Using analytics as competitive advantage
– Mccaw's Mccaw 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 McCaw Cellular Communications, Inc. (E) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mccaw's Mccaw to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Mccaw's Mccaw 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.
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 Mccaw's Mccaw in the consumer business. Now Mccaw's Mccaw can target international markets with far fewer capital restrictions requirements than the existing system.
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. Mccaw's Mccaw 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. Mccaw's Mccaw 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.
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. Mccaw's Mccaw 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 Mccaw's Mccaw 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 Mccaw's Mccaw to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Mccaw's Mccaw 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, Mccaw's Mccaw is facing challenges because of the dominance of functional experts in the organization. McCaw Cellular Communications, Inc. (E) 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mccaw's Mccaw can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Mccaw's Mccaw 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mccaw's Mccaw 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, McCaw Cellular Communications, Inc. (E), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Mccaw's Mccaw 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mccaw's Mccaw can use these opportunities to build new business models that can help the communities that Mccaw's Mccaw operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats McCaw Cellular Communications, Inc. (E) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study McCaw Cellular Communications, Inc. (E) are -
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High dependence on third party suppliers
– Mccaw's Mccaw 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.
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 Mccaw's Mccaw in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Mccaw's Mccaw
– 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 Mccaw's Mccaw.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mccaw's Mccaw with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Mccaw's Mccaw can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study McCaw Cellular Communications, Inc. (E), Mccaw's Mccaw 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 .
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. Mccaw's Mccaw needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Mccaw's Mccaw business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Mccaw's Mccaw 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.
Environmental challenges
– Mccaw's Mccaw 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. Mccaw's Mccaw can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Shortening product life cycle
– it is one of the major threat that Mccaw's Mccaw is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Mccaw's Mccaw 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.
Weighted SWOT Analysis of McCaw Cellular Communications, Inc. (E) 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 McCaw Cellular Communications, Inc. (E) 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 McCaw Cellular Communications, Inc. (E) 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 McCaw Cellular Communications, Inc. (E) 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 McCaw Cellular Communications, Inc. (E) 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 Mccaw's Mccaw needs to make to build a sustainable competitive advantage.
