Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version
Describes the launch of the innovative home video game company, 3DO, which had developed a groundbreaking system featuring 32-bit processing and CD-ROM software. Examines the competitive dynamics in the home video game industry from 1970 into the new millennium.
Swot Analysis of "Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version" written by Peter J. Coughlan 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 Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version case study are - Strategic Management Strategies, Competitive strategy, IT and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version casestudy better are - – increasing energy prices, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, geopolitical disruptions, challanges to central banks by blockchain based private currencies, there is backlash against globalization, talent flight as more people leaving formal jobs,
wage bills are increasing, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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 Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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 Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 3do Bit in Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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.
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.
Training and development
– 3do Bit has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For 3do Bit digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. 3do Bit 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.
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 Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
Ability to recruit top talent
– 3do Bit is one of the leading recruiters in the industry. Managers in the Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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 Peter J. Coughlan 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.
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 Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Strategy & Execution field
– 3do Bit 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 3do Bit in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of 3do Bit in the sector have low bargaining power. Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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.
Weaknesses Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version are -
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 - Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version, 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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 3do Bit has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of 3do Bit, firm in the HBR case study Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though 3do Bit 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 - Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version should strive to include more intangible value offerings along with its core products and services.
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.
Interest costs
– Compare to the competition, 3do Bit 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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version, 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.
Workers concerns about automation
– As automation is fast increasing in the segment, 3do Bit needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Aligning sales with marketing
– It come across in the case study Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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 Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version can leverage the sales team experience to cultivate customer relationships as 3do Bit is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, 3do Bit is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version | 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 Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version are -
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 3do Bit in the consumer business. Now 3do Bit can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– 3do Bit can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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.
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. Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, 3do Bit can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Manufacturing automation
– 3do Bit 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 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.
Creating value in data economy
– The success of analytics program of 3do Bit has opened avenues for new revenue streams for the organization in the industry. This can help 3do Bit to build a more holistic ecosystem as suggested in the Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version case study. 3do Bit can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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.
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.
Threats Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version are -
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.
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.
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. 3do Bit can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, 3do Bit 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 Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version .
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.
Stagnating economy with rate increase
– 3do Bit 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 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.
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.
Consumer confidence and its impact on 3do Bit 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.
Regulatory challenges
– 3do Bit 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.
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 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.
Increasing wage structure of 3do Bit
– 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 3do Bit.
Weighted SWOT Analysis of Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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 Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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 Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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 Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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 Competitive Dynamics in Home Video Games (E): The Rise of 3DO and 32-Bit Gaming, Spanish Version 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.
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