Supplement to case W16600. This case is a supplement to Nintendo: Game On! Released in July 2016, Pokemon GO was a location-based virtual reality mobile game in which players needed to locate and capture virtual creatures from the Pokemon family. Although it was a revolutionary concept, would its release mark a change in Nintendo's recent history of continuous decline in revenues and profits? Andrew Karl Delios is affiliated with National University of Singapore.
Swot Analysis of "Pokemon GO: Game On!" written by Parul Purwar, Andrew Karl Delios includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pokemon Game facing as an external strategic factors. Some of the topics covered in Pokemon GO: Game On! case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Pokemon GO: Game On! casestudy better are - – geopolitical disruptions, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , increasing commodity prices, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies,
there is backlash against globalization, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Pokemon GO: Game On!
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pokemon GO: Game On! case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pokemon Game, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pokemon Game 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 Pokemon GO: Game On! can be done for the following purposes –
1. Strategic planning using facts provided in Pokemon GO: Game On! case study
2. Improving business portfolio management of Pokemon Game
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 Pokemon Game
Strengths Pokemon GO: Game On! | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pokemon Game in Pokemon GO: Game On! Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Pokemon Game 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.
Ability to recruit top talent
– Pokemon Game is one of the leading recruiters in the industry. Managers in the Pokemon GO: Game On! 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
– Pokemon Game has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pokemon Game 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Pokemon Game digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pokemon Game 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.
Training and development
– Pokemon Game has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Pokemon GO: Game On! 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.
Analytics focus
– Pokemon Game 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 Parul Purwar, Andrew Karl Delios 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.
Low bargaining power of suppliers
– Suppliers of Pokemon Game in the sector have low bargaining power. Pokemon GO: Game On! has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pokemon Game to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Pokemon Game 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 Pokemon Game is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Pokemon GO: Game On! Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Pokemon Game in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Pokemon Game is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Pokemon GO: Game On! firm has clearly differentiated products in the market place. This has enabled Pokemon Game to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Pokemon Game to invest into research and development (R&D) and innovation.
High brand equity
– Pokemon Game has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pokemon Game to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Pokemon GO: Game On! | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pokemon GO: Game On! are -
Aligning sales with marketing
– It come across in the case study Pokemon GO: Game On! 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 Pokemon GO: Game On! can leverage the sales team experience to cultivate customer relationships as Pokemon Game is planning to shift buying processes online.
Products dominated business model
– Even though Pokemon Game 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 - Pokemon GO: Game On! should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Pokemon GO: Game On! HBR case study mentions - Pokemon Game 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.
No frontier risks strategy
– After analyzing the HBR case study Pokemon GO: Game On!, 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.
Lack of clear differentiation of Pokemon Game products
– To increase the profitability and margins on the products, Pokemon Game needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Pokemon Game 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.
Need for greater diversity
– Pokemon Game 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 Pokemon GO: Game On! 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 Pokemon Game 's lucrative customers.
Interest costs
– Compare to the competition, Pokemon Game 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.
Low market penetration in new markets
– Outside its home market of Pokemon Game, firm in the HBR case study Pokemon GO: Game On! needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Pokemon Game is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Pokemon Game needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pokemon Game to focus more on services rather than just following the product oriented approach.
Opportunities Pokemon GO: Game On! | 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 Pokemon GO: Game On! are -
Manufacturing automation
– Pokemon Game 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pokemon Game can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Pokemon Game 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pokemon Game is facing challenges because of the dominance of functional experts in the organization. Pokemon GO: Game On! 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.
Learning at scale
– Online learning technologies has now opened space for Pokemon Game 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pokemon Game can use these opportunities to build new business models that can help the communities that Pokemon Game operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pokemon Game 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 Pokemon Game to hire the very best people irrespective of their geographical location.
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. Pokemon Game can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Pokemon Game has opened avenues for new revenue streams for the organization in the industry. This can help Pokemon Game to build a more holistic ecosystem as suggested in the Pokemon GO: Game On! case study. Pokemon Game can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Pokemon Game 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 Pokemon GO: Game On! - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pokemon Game to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pokemon Game 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.
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 Pokemon Game 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.
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 Pokemon Game in the consumer business. Now Pokemon Game can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Pokemon GO: Game On! External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pokemon GO: Game On! are -
Regulatory challenges
– Pokemon Game 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 Pokemon Game with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Pokemon Game is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Pokemon Game
– 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 Pokemon Game.
High dependence on third party suppliers
– Pokemon Game 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.
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 Pokemon Game business can come under increasing regulations regarding data privacy, data security, etc.
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 Pokemon Game.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pokemon Game in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pokemon Game 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 Pokemon GO: Game On! .
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.
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 Pokemon Game in the Strategy & Execution sector and impact the bottomline of the organization.
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. Pokemon Game needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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. Pokemon Game can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Pokemon GO: Game On! 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 Pokemon GO: Game On! 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 Pokemon GO: Game On! 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 Pokemon GO: Game On! 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 Pokemon GO: Game On! 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 Pokemon Game needs to make to build a sustainable competitive advantage.
