Betaspring and the Startup Accelerator Movement SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Betaspring and the Startup Accelerator Movement
Betaspring was a mentorship-driven startup accelerator program for technology and design entrepreneurs. Founded in Rhode Island in 2009, it was one of the highest-ranked and longest-operating accelerators in the United States and was notable for being headquartered outside Silicon Valley. However, debate had emerged about the value provided by accelerators, and in August 2014 Betaspring faced two crucial strategic questions. Had a bubble emerged in the accelerator industry? If so, should Betaspring change its business model in order to survive a potential industry shakeout? Michael A. Roberto is affiliated with Bryant University.
Swot Analysis of "Betaspring and the Startup Accelerator Movement" written by Michael A. Roberto, Matthew Los Kamp includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Betaspring Accelerator facing as an external strategic factors. Some of the topics covered in Betaspring and the Startup Accelerator Movement case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Betaspring and the Startup Accelerator Movement casestudy better are - – increasing household debt because of falling income levels, increasing energy prices, there is backlash against globalization, technology disruption, increasing transportation and logistics costs, wage bills are increasing, cloud computing is disrupting traditional business models,
competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Betaspring and the Startup Accelerator Movement
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Betaspring and the Startup Accelerator Movement case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Betaspring Accelerator, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Betaspring Accelerator 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 Betaspring and the Startup Accelerator Movement can be done for the following purposes –
1. Strategic planning using facts provided in Betaspring and the Startup Accelerator Movement case study
2. Improving business portfolio management of Betaspring Accelerator
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 Betaspring Accelerator
Strengths Betaspring and the Startup Accelerator Movement | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Betaspring Accelerator in Betaspring and the Startup Accelerator Movement Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– Betaspring and the Startup Accelerator Movement firm has clearly differentiated products in the market place. This has enabled Betaspring Accelerator to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Betaspring Accelerator to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Betaspring Accelerator 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 Betaspring and the Startup Accelerator Movement - 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 recruit top talent
– Betaspring Accelerator is one of the leading recruiters in the industry. Managers in the Betaspring and the Startup Accelerator Movement are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Strategy & Execution field
– Betaspring Accelerator 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 Betaspring Accelerator in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Betaspring Accelerator has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Betaspring Accelerator to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Betaspring Accelerator 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 Betaspring and the Startup Accelerator Movement 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
– Betaspring Accelerator has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Betaspring Accelerator 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.
Training and development
– Betaspring Accelerator has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Betaspring and the Startup Accelerator Movement 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
– Betaspring Accelerator 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 Michael A. Roberto, Matthew Los Kamp 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 Betaspring Accelerator in the sector have low bargaining power. Betaspring and the Startup Accelerator Movement has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Betaspring Accelerator to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Betaspring Accelerator digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Betaspring Accelerator has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Learning organization
- Betaspring Accelerator 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 Betaspring Accelerator is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Betaspring and the Startup Accelerator Movement Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Betaspring and the Startup Accelerator Movement | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Betaspring and the Startup Accelerator Movement are -
Capital Spending Reduction
– Even during the low interest decade, Betaspring Accelerator 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 bargaining power of channel partners
– Because of the regulatory requirements, Michael A. Roberto, Matthew Los Kamp suggests that, Betaspring Accelerator is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Betaspring and the Startup Accelerator Movement, it seems that the employees of Betaspring Accelerator don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Betaspring and the Startup Accelerator Movement, is just above the industry average. Betaspring Accelerator needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to strategic competitive environment developments
– As Betaspring and the Startup Accelerator Movement HBR case study mentions - Betaspring Accelerator 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Betaspring and the Startup Accelerator Movement 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 Betaspring Accelerator 's lucrative customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Betaspring Accelerator supply chain. Even after few cautionary changes mentioned in the HBR case study - Betaspring and the Startup Accelerator Movement, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Betaspring Accelerator vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Betaspring Accelerator 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.
No frontier risks strategy
– After analyzing the HBR case study Betaspring and the Startup Accelerator Movement, 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Betaspring and the Startup Accelerator Movement 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 Betaspring Accelerator has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Betaspring Accelerator 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.
Opportunities Betaspring and the Startup Accelerator Movement | 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 Betaspring and the Startup Accelerator Movement are -
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. Betaspring Accelerator can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Betaspring Accelerator is facing challenges because of the dominance of functional experts in the organization. Betaspring and the Startup Accelerator Movement 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.
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 Betaspring Accelerator 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Betaspring Accelerator 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.
Buying journey improvements
– Betaspring Accelerator can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Betaspring and the Startup Accelerator Movement 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Betaspring Accelerator can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Betaspring Accelerator 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Betaspring Accelerator 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 Betaspring Accelerator to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Betaspring Accelerator 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Betaspring Accelerator can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Betaspring Accelerator 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 Betaspring and the Startup Accelerator Movement - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Betaspring Accelerator to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Betaspring Accelerator has opened avenues for new revenue streams for the organization in the industry. This can help Betaspring Accelerator to build a more holistic ecosystem as suggested in the Betaspring and the Startup Accelerator Movement case study. Betaspring Accelerator can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Betaspring Accelerator 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.
Threats Betaspring and the Startup Accelerator Movement External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Betaspring and the Startup Accelerator Movement are -
Stagnating economy with rate increase
– Betaspring Accelerator 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.
Technology acceleration in Forth Industrial Revolution
– Betaspring Accelerator has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Betaspring Accelerator 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.
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.
Increasing wage structure of Betaspring Accelerator
– 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 Betaspring Accelerator.
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 Betaspring Accelerator in the Strategy & Execution sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Betaspring and the Startup Accelerator Movement, Betaspring Accelerator 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
– Betaspring Accelerator 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.
Regulatory challenges
– Betaspring Accelerator 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.
Shortening product life cycle
– it is one of the major threat that Betaspring Accelerator is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Betaspring Accelerator 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.
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. Betaspring Accelerator needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Betaspring Accelerator 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. Betaspring Accelerator can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Betaspring Accelerator 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 Betaspring and the Startup Accelerator Movement 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 Betaspring and the Startup Accelerator Movement 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 Betaspring and the Startup Accelerator Movement 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 Betaspring and the Startup Accelerator Movement 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 Betaspring and the Startup Accelerator Movement 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 Betaspring Accelerator needs to make to build a sustainable competitive advantage.