Swot Analysis of "McCaw Cellular Communications, Inc. (D)" written by Elizabeth Olmsted Teisberg, Chris Shumway, Sharon Rossi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Communications Mccaw facing as an external strategic factors. Some of the topics covered in McCaw Cellular Communications, Inc. (D) case study are - Strategic Management Strategies, Competitive strategy, 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. (D) casestudy better are - – challanges to central banks by blockchain based private currencies, increasing energy prices, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic ,
there is increasing trade war between United States & China, technology disruption, etc
Introduction to SWOT Analysis of McCaw Cellular Communications, Inc. (D)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in McCaw Cellular Communications, Inc. (D) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Communications Mccaw, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Communications 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. (D) can be done for the following purposes –
1. Strategic planning using facts provided in McCaw Cellular Communications, Inc. (D) case study
2. Improving business portfolio management of Communications 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 Communications Mccaw
Strengths McCaw Cellular Communications, Inc. (D) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Communications Mccaw in McCaw Cellular Communications, Inc. (D) Harvard Business Review case study are -
Training and development
– Communications Mccaw has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in McCaw Cellular Communications, Inc. (D) 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.
Effective Research and Development (R&D)
– Communications Mccaw 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 McCaw Cellular Communications, Inc. (D) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Strategy & Execution field
– Communications 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 Communications Mccaw in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Strategy & Execution industry
– McCaw Cellular Communications, Inc. (D) firm has clearly differentiated products in the market place. This has enabled Communications Mccaw to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Communications Mccaw to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the McCaw Cellular Communications, Inc. (D) 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 Communications Mccaw digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Communications Mccaw 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 brand equity
– Communications Mccaw has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Communications Mccaw to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Communications Mccaw in the sector have low bargaining power. McCaw Cellular Communications, Inc. (D) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Communications Mccaw to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Communications 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. (D) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Communications Mccaw is one of the leading recruiters in the industry. Managers in the McCaw Cellular Communications, Inc. (D) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Communications Mccaw is one of the most innovative firm in sector. Manager in McCaw Cellular Communications, Inc. (D) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Communications 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, Chris Shumway, 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.
Weaknesses McCaw Cellular Communications, Inc. (D) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of McCaw Cellular Communications, Inc. (D) are -
High cash cycle compare to competitors
Communications Mccaw 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.
High operating costs
– Compare to the competitors, firm in the HBR case study McCaw Cellular Communications, Inc. (D) 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 Communications Mccaw 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the McCaw Cellular Communications, Inc. (D) 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 Communications Mccaw has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Communications Mccaw is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study McCaw Cellular Communications, Inc. (D) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Communications 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. Communications 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study McCaw Cellular Communications, Inc. (D), is just above the industry average. Communications Mccaw 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.
Low market penetration in new markets
– Outside its home market of Communications Mccaw, firm in the HBR case study McCaw Cellular Communications, Inc. (D) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study McCaw Cellular Communications, Inc. (D) 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. (D) can leverage the sales team experience to cultivate customer relationships as Communications Mccaw is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study McCaw Cellular Communications, Inc. (D), it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to strategic competitive environment developments
– As McCaw Cellular Communications, Inc. (D) HBR case study mentions - Communications 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study McCaw Cellular Communications, Inc. (D), in the dynamic environment Communications Mccaw has struggled to respond to the nimble upstart competition. Communications Mccaw has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities McCaw Cellular Communications, Inc. (D) | 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. (D) are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Communications Mccaw can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Communications Mccaw has opened avenues for new revenue streams for the organization in the industry. This can help Communications Mccaw to build a more holistic ecosystem as suggested in the McCaw Cellular Communications, Inc. (D) case study. Communications Mccaw can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Communications Mccaw 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.
Building a culture of innovation
– managers at Communications 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.
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 Communications Mccaw 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.
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. Communications 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. Communications 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.
Learning at scale
– Online learning technologies has now opened space for Communications Mccaw 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Communications 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 Communications Mccaw to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Communications Mccaw to increase its market reach. Communications Mccaw 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.
Manufacturing automation
– Communications 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Communications Mccaw 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Communications 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. (D), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Communications Mccaw can use these opportunities to build new business models that can help the communities that Communications Mccaw operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats McCaw Cellular Communications, Inc. (D) 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. (D) are -
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 Communications Mccaw in the Strategy & Execution sector and impact the bottomline of the organization.
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 Communications Mccaw 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. Communications Mccaw needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing wage structure of Communications 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 Communications Mccaw.
Shortening product life cycle
– it is one of the major threat that Communications Mccaw is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Communications Mccaw 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 McCaw Cellular Communications, Inc. (D) .
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. Communications Mccaw can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Communications Mccaw has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Communications Mccaw 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.
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. (D), Communications 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 dependence on third party suppliers
– Communications 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.
Stagnating economy with rate increase
– Communications 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.
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.
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.
Weighted SWOT Analysis of McCaw Cellular Communications, Inc. (D) 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. (D) 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. (D) 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. (D) 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. (D) 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 Communications Mccaw needs to make to build a sustainable competitive advantage.