MySQL Open Source Database in 2004 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of MySQL Open Source Database in 2004
In 2004, MySQL was a small, $10 million Scandinavian software company that seriously challenged the big three IT companies, IBM, Microsoft, and Oracle, in their high-margin, $10 billion database business. A new phenomenon in the software industry--open source--provided ways for new entrants to challenge the incumbents and gain a foothold in a low-cost segment of the market. This case provides the opportunity to study the forces that would determine whether MySQL could change the database software category in the way Linux did for server operating system space. MySQL relied on a low-cost business model with a global, virtual organization, and the case frames the question of whether this innovative, Internet-based business model could be scaled into a large, profitable growth company. The case describes the open source software phenomenon through a specific case, MySQL, and the innovator's dilemma: MySQL gained a foothold by serving the needs of the growing Web services market that was ignored by the big three DBMS players. After the foothold was established, MySQL was in the position potentially to challenge every DBMS player in the market.
Authors :: Robert A. Burgelman, Sami Inkinen, Christof Wittig
Swot Analysis of "MySQL Open Source Database in 2004" written by Robert A. Burgelman, Sami Inkinen, Christof Wittig includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mysql Foothold facing as an external strategic factors. Some of the topics covered in MySQL Open Source Database in 2004 case study are - Strategic Management Strategies, Data, Decision making, Disruptive innovation, Internet, IT, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the MySQL Open Source Database in 2004 casestudy better are - – increasing energy prices, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing government debt because of Covid-19 spendings, increasing commodity prices, technology disruption,
there is backlash against globalization, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of MySQL Open Source Database in 2004
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MySQL Open Source Database in 2004 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mysql Foothold, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mysql Foothold 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 MySQL Open Source Database in 2004 can be done for the following purposes –
1. Strategic planning using facts provided in MySQL Open Source Database in 2004 case study
2. Improving business portfolio management of Mysql Foothold
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 Mysql Foothold
Strengths MySQL Open Source Database in 2004 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mysql Foothold in MySQL Open Source Database in 2004 Harvard Business Review case study are -
Highly skilled collaborators
– Mysql Foothold 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 MySQL Open Source Database in 2004 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 Mysql Foothold 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 Mysql Foothold in the sector have low bargaining power. MySQL Open Source Database in 2004 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mysql Foothold to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Mysql Foothold is one of the most innovative firm in sector. Manager in MySQL Open Source Database in 2004 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Mysql Foothold 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 Mysql Foothold is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in MySQL Open Source Database in 2004 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Strategy & Execution field
– Mysql Foothold 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 Mysql Foothold in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Mysql Foothold is present in almost all the verticals within the industry. This has provided firm in MySQL Open Source Database in 2004 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.
Analytics focus
– Mysql Foothold 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 Robert A. Burgelman, Sami Inkinen, Christof Wittig 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.
Sustainable margins compare to other players in Strategy & Execution industry
– MySQL Open Source Database in 2004 firm has clearly differentiated products in the market place. This has enabled Mysql Foothold to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Mysql Foothold to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Mysql Foothold 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 MySQL Open Source Database in 2004 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the MySQL Open Source Database in 2004 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Mysql Foothold digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mysql Foothold 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.
Weaknesses MySQL Open Source Database in 2004 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MySQL Open Source Database in 2004 are -
Capital Spending Reduction
– Even during the low interest decade, Mysql Foothold 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.
Lack of clear differentiation of Mysql Foothold products
– To increase the profitability and margins on the products, Mysql Foothold needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Mysql Foothold supply chain. Even after few cautionary changes mentioned in the HBR case study - MySQL Open Source Database in 2004, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mysql Foothold 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 MySQL Open Source Database in 2004 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 Mysql Foothold has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As MySQL Open Source Database in 2004 HBR case study mentions - Mysql Foothold 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mysql Foothold is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study MySQL Open Source Database in 2004 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Mysql Foothold 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.
Need for greater diversity
– Mysql Foothold 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.
Increasing silos among functional specialists
– The organizational structure of Mysql Foothold is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Mysql Foothold needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mysql Foothold to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study MySQL Open Source Database in 2004, is just above the industry average. Mysql Foothold 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 cash cycle compare to competitors
Mysql Foothold 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.
Opportunities MySQL Open Source Database in 2004 | 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 MySQL Open Source Database in 2004 are -
Using analytics as competitive advantage
– Mysql Foothold 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 MySQL Open Source Database in 2004 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mysql Foothold to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Mysql Foothold can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Mysql Foothold 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.
Creating value in data economy
– The success of analytics program of Mysql Foothold has opened avenues for new revenue streams for the organization in the industry. This can help Mysql Foothold to build a more holistic ecosystem as suggested in the MySQL Open Source Database in 2004 case study. Mysql Foothold 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 Mysql Foothold 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mysql Foothold can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Mysql Foothold 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mysql Foothold can use these opportunities to build new business models that can help the communities that Mysql Foothold operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Building a culture of innovation
– managers at Mysql Foothold 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.
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 Mysql Foothold in the consumer business. Now Mysql Foothold can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Mysql Foothold can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mysql Foothold 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.
Better consumer reach
– The expansion of the 5G network will help Mysql Foothold to increase its market reach. Mysql Foothold 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.
Threats MySQL Open Source Database in 2004 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study MySQL Open Source Database in 2004 are -
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. Mysql Foothold can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Mysql Foothold
– 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 Mysql Foothold.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study MySQL Open Source Database in 2004, Mysql Foothold may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
High dependence on third party suppliers
– Mysql Foothold 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.
Shortening product life cycle
– it is one of the major threat that Mysql Foothold is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mysql Foothold with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Mysql Foothold.
Environmental challenges
– Mysql Foothold 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. Mysql Foothold can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Mysql Foothold business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Mysql Foothold 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
– Mysql Foothold has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Mysql Foothold 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mysql Foothold 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.
Weighted SWOT Analysis of MySQL Open Source Database in 2004 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 MySQL Open Source Database in 2004 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 MySQL Open Source Database in 2004 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 MySQL Open Source Database in 2004 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 MySQL Open Source Database in 2004 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 Mysql Foothold needs to make to build a sustainable competitive advantage.
