Vizio: Entry and Growth in Television Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Vizio: Entry and Growth in Television Market
Vizio has grown in the U.S. flat-screen television market with a focused low-cost strategy. The roles of Vizio and its partners along the value chain are described to understand the sources of its competitive advantage. Vizio's fast growth in a dynamic industry raises the question of what its strategic priorities should be going forward.
Swot Analysis of "Vizio: Entry and Growth in Television Market" written by James Costantini includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Vizio Vizio's facing as an external strategic factors. Some of the topics covered in Vizio: Entry and Growth in Television Market case study are - Strategic Management Strategies, Marketing, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Vizio: Entry and Growth in Television Market casestudy better are - – digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, 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%, talent flight as more people leaving formal jobs, there is backlash against globalization,
cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Vizio: Entry and Growth in Television Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Vizio: Entry and Growth in Television Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vizio Vizio's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vizio Vizio's 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 Vizio: Entry and Growth in Television Market can be done for the following purposes –
1. Strategic planning using facts provided in Vizio: Entry and Growth in Television Market case study
2. Improving business portfolio management of Vizio Vizio's
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 Vizio Vizio's
Strengths Vizio: Entry and Growth in Television Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vizio Vizio's in Vizio: Entry and Growth in Television Market Harvard Business Review case study are -
Diverse revenue streams
– Vizio Vizio's is present in almost all the verticals within the industry. This has provided firm in Vizio: Entry and Growth in Television Market case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High brand equity
– Vizio Vizio's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Vizio Vizio's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– Vizio: Entry and Growth in Television Market firm has clearly differentiated products in the market place. This has enabled Vizio Vizio's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Vizio Vizio's to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Vizio Vizio's 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 Vizio: Entry and Growth in Television Market HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Vizio Vizio's is one of the most innovative firm in sector. Manager in Vizio: Entry and Growth in Television Market Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Vizio: Entry and Growth in Television Market Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Cross disciplinary teams
– Horizontal connected teams at the Vizio Vizio's 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.
Organizational Resilience of Vizio Vizio's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Vizio Vizio's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Vizio Vizio's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Vizio Vizio's in the sector have low bargaining power. Vizio: Entry and Growth in Television Market has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Vizio Vizio's to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Vizio Vizio's is one of the leading recruiters in the industry. Managers in the Vizio: Entry and Growth in Television Market are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Vizio Vizio's 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 Vizio Vizio's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Vizio: Entry and Growth in Television Market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Vizio: Entry and Growth in Television Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Vizio: Entry and Growth in Television Market are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Vizio: Entry and Growth in Television Market, it seems that the employees of Vizio Vizio's 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 Vizio: Entry and Growth in Television Market, is just above the industry average. Vizio Vizio's 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Vizio: Entry and Growth in Television Market has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Vizio Vizio's 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Vizio Vizio's 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.
Low market penetration in new markets
– Outside its home market of Vizio Vizio's, firm in the HBR case study Vizio: Entry and Growth in Television Market needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Vizio: Entry and Growth in Television Market, in the dynamic environment Vizio Vizio's has struggled to respond to the nimble upstart competition. Vizio Vizio's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Vizio Vizio's 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.
Lack of clear differentiation of Vizio Vizio's products
– To increase the profitability and margins on the products, Vizio Vizio's needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Vizio Vizio's 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.
Skills based hiring
– The stress on hiring functional specialists at Vizio Vizio's 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.
Interest costs
– Compare to the competition, Vizio Vizio's 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 Vizio: Entry and Growth in Television Market | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Vizio: Entry and Growth in Television Market are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Vizio Vizio's can use these opportunities to build new business models that can help the communities that Vizio Vizio's operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Manufacturing automation
– Vizio Vizio's 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 Vizio Vizio's 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 Vizio Vizio's to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Vizio Vizio's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Vizio Vizio's 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.
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. Vizio Vizio's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Vizio Vizio's 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Vizio Vizio's is facing challenges because of the dominance of functional experts in the organization. Vizio: Entry and Growth in Television Market 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 Vizio Vizio's 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 Vizio Vizio's has opened avenues for new revenue streams for the organization in the industry. This can help Vizio Vizio's to build a more holistic ecosystem as suggested in the Vizio: Entry and Growth in Television Market case study. Vizio Vizio's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Vizio Vizio's 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.
Using analytics as competitive advantage
– Vizio Vizio's 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 Vizio: Entry and Growth in Television Market - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Vizio Vizio's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Vizio Vizio's in the consumer business. Now Vizio Vizio's can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Vizio: Entry and Growth in Television Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Vizio: Entry and Growth in Television Market are -
Consumer confidence and its impact on Vizio Vizio's 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.
Technology acceleration in Forth Industrial Revolution
– Vizio Vizio's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Vizio Vizio's 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.
Shortening product life cycle
– it is one of the major threat that Vizio Vizio's 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, Vizio Vizio's 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 Vizio: Entry and Growth in Television Market .
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. Vizio Vizio's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Vizio Vizio's in the Strategy & Execution sector and impact the bottomline of the organization.
Environmental challenges
– Vizio Vizio's 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. Vizio Vizio's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Vizio Vizio's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
High dependence on third party suppliers
– Vizio Vizio's 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.
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. Vizio Vizio's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Vizio Vizio's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Vizio: Entry and Growth in Television Market, Vizio Vizio's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Weighted SWOT Analysis of Vizio: Entry and Growth in Television Market Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Vizio: Entry and Growth in Television Market needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Vizio: Entry and Growth in Television Market is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Vizio: Entry and Growth in Television Market is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Vizio: Entry and Growth in Television Market is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Vizio Vizio's needs to make to build a sustainable competitive advantage.