Competing for the Future: Swatch, Transforming an Industry, Video (DVD) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Competing for the Future: Swatch, Transforming an Industry, Video (DVD)
Who will invent the industries of the future? Who will transform the industries of today? Framed by insightful commentary by Gary Hamel and C.K. Prahalad, this video tells the story of Swatch, which recaptured dominance of the world watch industry by transforming the industry itself.
Swot Analysis of "Competing for the Future: Swatch, Transforming an Industry, Video (DVD)" written by Gary Hamel, C.K. Prahalad includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Swatch Transforming facing as an external strategic factors. Some of the topics covered in Competing for the Future: Swatch, Transforming an Industry, Video (DVD) case study are - Strategic Management Strategies, Forecasting, Innovation, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Competing for the Future: Swatch, Transforming an Industry, Video (DVD) casestudy better are - – technology disruption, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, geopolitical disruptions, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization,
increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Competing for the Future: Swatch, Transforming an Industry, Video (DVD)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Competing for the Future: Swatch, Transforming an Industry, Video (DVD) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Swatch Transforming, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Swatch Transforming 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 Competing for the Future: Swatch, Transforming an Industry, Video (DVD) can be done for the following purposes –
1. Strategic planning using facts provided in Competing for the Future: Swatch, Transforming an Industry, Video (DVD) case study
2. Improving business portfolio management of Swatch Transforming
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 Swatch Transforming
Strengths Competing for the Future: Swatch, Transforming an Industry, Video (DVD) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Swatch Transforming in Competing for the Future: Swatch, Transforming an Industry, Video (DVD) Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Swatch Transforming in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Swatch Transforming in the sector have low bargaining power. Competing for the Future: Swatch, Transforming an Industry, Video (DVD) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Swatch Transforming to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Swatch Transforming has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Competing for the Future: Swatch, Transforming an Industry, Video (DVD) 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.
Operational resilience
– The operational resilience strategy in the Competing for the Future: Swatch, Transforming an Industry, Video (DVD) 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Competing for the Future: Swatch, Transforming an Industry, Video (DVD) firm has clearly differentiated products in the market place. This has enabled Swatch Transforming to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Swatch Transforming to invest into research and development (R&D) and innovation.
Organizational Resilience of Swatch Transforming
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Swatch Transforming does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Swatch Transforming is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Swatch Transforming 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.
Analytics focus
– Swatch Transforming 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 Gary Hamel, C.K. Prahalad 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.
High switching costs
– The high switching costs that Swatch Transforming has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Effective Research and Development (R&D)
– Swatch Transforming 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 Competing for the Future: Swatch, Transforming an Industry, Video (DVD) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Swatch Transforming is one of the most innovative firm in sector. Manager in Competing for the Future: Swatch, Transforming an Industry, Video (DVD) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Competing for the Future: Swatch, Transforming an Industry, Video (DVD) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Competing for the Future: Swatch, Transforming an Industry, Video (DVD) are -
Slow decision making process
– As mentioned earlier in the report, Swatch Transforming has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Swatch Transforming even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Low market penetration in new markets
– Outside its home market of Swatch Transforming, firm in the HBR case study Competing for the Future: Swatch, Transforming an Industry, Video (DVD) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Swatch Transforming 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 - Competing for the Future: Swatch, Transforming an Industry, Video (DVD) should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Competing for the Future: Swatch, Transforming an Industry, Video (DVD), is just above the industry average. Swatch Transforming 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Competing for the Future: Swatch, Transforming an Industry, Video (DVD), it seems that the employees of Swatch Transforming 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.
Slow to strategic competitive environment developments
– As Competing for the Future: Swatch, Transforming an Industry, Video (DVD) HBR case study mentions - Swatch Transforming 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.
Capital Spending Reduction
– Even during the low interest decade, Swatch Transforming 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 operating costs
– Compare to the competitors, firm in the HBR case study Competing for the Future: Swatch, Transforming an Industry, Video (DVD) 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 Swatch Transforming '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 Swatch Transforming supply chain. Even after few cautionary changes mentioned in the HBR case study - Competing for the Future: Swatch, Transforming an Industry, Video (DVD), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Swatch Transforming vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Swatch Transforming 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.
Aligning sales with marketing
– It come across in the case study Competing for the Future: Swatch, Transforming an Industry, Video (DVD) 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 Competing for the Future: Swatch, Transforming an Industry, Video (DVD) can leverage the sales team experience to cultivate customer relationships as Swatch Transforming is planning to shift buying processes online.
Opportunities Competing for the Future: Swatch, Transforming an Industry, Video (DVD) | 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 Competing for the Future: Swatch, Transforming an Industry, Video (DVD) are -
Creating value in data economy
– The success of analytics program of Swatch Transforming has opened avenues for new revenue streams for the organization in the industry. This can help Swatch Transforming to build a more holistic ecosystem as suggested in the Competing for the Future: Swatch, Transforming an Industry, Video (DVD) case study. Swatch Transforming can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Swatch Transforming can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Building a culture of innovation
– managers at Swatch Transforming 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Swatch Transforming 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.
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 Swatch Transforming 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Swatch Transforming can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Swatch Transforming can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Competing for the Future: Swatch, Transforming an Industry, Video (DVD) 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.
Using analytics as competitive advantage
– Swatch Transforming 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 Competing for the Future: Swatch, Transforming an Industry, Video (DVD) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Swatch Transforming to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Swatch Transforming 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, Competing for the Future: Swatch, Transforming an Industry, Video (DVD), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Swatch Transforming to increase its market reach. Swatch Transforming 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.
Manufacturing automation
– Swatch Transforming 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.
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. Swatch Transforming can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Swatch Transforming in the consumer business. Now Swatch Transforming can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Competing for the Future: Swatch, Transforming an Industry, Video (DVD) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Competing for the Future: Swatch, Transforming an Industry, Video (DVD) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Swatch Transforming 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.
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 Swatch Transforming 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 Competing for the Future: Swatch, Transforming an Industry, Video (DVD), Swatch Transforming 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 .
Stagnating economy with rate increase
– Swatch Transforming 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Swatch Transforming in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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.
Shortening product life cycle
– it is one of the major threat that Swatch Transforming is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Swatch Transforming 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.
Technology acceleration in Forth Industrial Revolution
– Swatch Transforming has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Swatch Transforming 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.
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 Swatch Transforming business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Swatch Transforming 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. Swatch Transforming 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. Swatch Transforming needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Competing for the Future: Swatch, Transforming an Industry, Video (DVD) 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 Competing for the Future: Swatch, Transforming an Industry, Video (DVD) 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 Competing for the Future: Swatch, Transforming an Industry, Video (DVD) 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 Competing for the Future: Swatch, Transforming an Industry, Video (DVD) 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 Competing for the Future: Swatch, Transforming an Industry, Video (DVD) 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 Swatch Transforming needs to make to build a sustainable competitive advantage.
