Power Play (C): 3DO in 32-bit Video Games SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Power Play (C): 3DO in 32-bit Video Games
The 1980s were the "Nintendo" decade in video-games, while the early 1990s saw Sega rise to prominence on the basis of next-generation, 16-bit technology. By early 1994, Nintendo and Sega split the worldwide installed base of 16-bit home video-game systems about equally. Still, while 16-bit systems offered superior graphics, sound, and game play over the earlier 8-bit systems, many observers considered them a transitional technology, likely to be superseded in the next two to five years. The case focuses on the efforts of 3DO, a high-profile U.S. start-up, to promote a new 32-bit platform. Also describes the new technologies being developed by Nintendo, Sega, Sony, Philips, and Atari. By expanding the scope of the game, 3DO engineered a window of opportunity with respect to the established players, Nintendo and Sega. Focuses on how 3DO chose to exploit that opportunity. Illustrates, in particular, the strategy of bringing new players into a game. Planning to make money from licensing the software technology, 3DO gave away the hardware technology for free.
Swot Analysis of "Power Play (C): 3DO in 32-bit Video Games" written by Adam Brandenburger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 3do Bit facing as an external strategic factors. Some of the topics covered in Power Play (C): 3DO in 32-bit Video Games case study are - Strategic Management Strategies, Competitive strategy, Marketing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Power Play (C): 3DO in 32-bit Video Games casestudy better are - – wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices,
geopolitical disruptions, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Power Play (C): 3DO in 32-bit Video Games
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Power Play (C): 3DO in 32-bit Video Games case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 3do Bit, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 3do Bit 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 Power Play (C): 3DO in 32-bit Video Games can be done for the following purposes –
1. Strategic planning using facts provided in Power Play (C): 3DO in 32-bit Video Games case study
2. Improving business portfolio management of 3do Bit
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 3do Bit
Strengths Power Play (C): 3DO in 32-bit Video Games | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 3do Bit in Power Play (C): 3DO in 32-bit Video Games Harvard Business Review case study are -
Strong track record of project management
– 3do Bit is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– 3do Bit 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 Adam Brandenburger 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.
Highly skilled collaborators
– 3do Bit 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 Power Play (C): 3DO in 32-bit Video Games HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Power Play (C): 3DO in 32-bit Video Games Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to recruit top talent
– 3do Bit is one of the leading recruiters in the industry. Managers in the Power Play (C): 3DO in 32-bit Video Games are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– 3do Bit 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 Power Play (C): 3DO in 32-bit Video Games - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Power Play (C): 3DO in 32-bit Video Games firm has clearly differentiated products in the market place. This has enabled 3do Bit to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped 3do Bit to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the 3do Bit 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.
Low bargaining power of suppliers
– Suppliers of 3do Bit in the sector have low bargaining power. Power Play (C): 3DO in 32-bit Video Games has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps 3do Bit to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of 3do Bit in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– 3do Bit is present in almost all the verticals within the industry. This has provided firm in Power Play (C): 3DO in 32-bit Video Games 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.
Successful track record of launching new products
– 3do Bit has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 3do Bit 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.
Weaknesses Power Play (C): 3DO in 32-bit Video Games | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Power Play (C): 3DO in 32-bit Video Games are -
Lack of clear differentiation of 3do Bit products
– To increase the profitability and margins on the products, 3do Bit needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– 3do Bit 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 cash cycle compare to competitors
3do Bit 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 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 3do Bit supply chain. Even after few cautionary changes mentioned in the HBR case study - Power Play (C): 3DO in 32-bit Video Games, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left 3do Bit vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, 3do Bit 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.
Skills based hiring
– The stress on hiring functional specialists at 3do Bit 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Power Play (C): 3DO in 32-bit Video Games, it seems that the employees of 3do Bit 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Power Play (C): 3DO in 32-bit Video Games 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 3do Bit 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Power Play (C): 3DO in 32-bit Video Games, 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Power Play (C): 3DO in 32-bit Video Games, is just above the industry average. 3do Bit 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 3do Bit, firm in the HBR case study Power Play (C): 3DO in 32-bit Video Games needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Power Play (C): 3DO in 32-bit Video Games | 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 Power Play (C): 3DO in 32-bit Video Games are -
Better consumer reach
– The expansion of the 5G network will help 3do Bit to increase its market reach. 3do Bit 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for 3do Bit 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.
Learning at scale
– Online learning technologies has now opened space for 3do Bit 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.
Buying journey improvements
– 3do Bit can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Power Play (C): 3DO in 32-bit Video Games 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.
Loyalty marketing
– 3do Bit has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for 3do Bit 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 3do Bit to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– 3do Bit 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 Power Play (C): 3DO in 32-bit Video Games - to build a competitive advantage using analytics. The analytics driven competitive advantage can help 3do Bit to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. 3do Bit 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. 3do Bit can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. 3do Bit 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, 3do Bit is facing challenges because of the dominance of functional experts in the organization. Power Play (C): 3DO in 32-bit Video Games 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.
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. 3do Bit can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– 3do Bit 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.
Building a culture of innovation
– managers at 3do Bit 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.
Threats Power Play (C): 3DO in 32-bit Video Games External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Power Play (C): 3DO in 32-bit Video Games are -
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.
Technology acceleration in Forth Industrial Revolution
– 3do Bit has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, 3do Bit 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.
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 3do Bit.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Power Play (C): 3DO in 32-bit Video Games, 3do Bit 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 .
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 3do Bit in the Strategy & Execution sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. 3do Bit will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– 3do Bit 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. 3do Bit can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
High dependence on third party suppliers
– 3do Bit 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents 3do Bit 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 3do Bit is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 3do Bit 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. 3do Bit needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
Weighted SWOT Analysis of Power Play (C): 3DO in 32-bit Video Games 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 Power Play (C): 3DO in 32-bit Video Games 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 Power Play (C): 3DO in 32-bit Video Games 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 Power Play (C): 3DO in 32-bit Video Games 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 Power Play (C): 3DO in 32-bit Video Games 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 3do Bit needs to make to build a sustainable competitive advantage.