Note on the Microcomputer Software Industry--January 1982 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Note on the Microcomputer Software Industry--January 1982
Contains a history of the microcomputer software industry from the mid-1970s through early 1982. During that period growth was explosive. Many new companies were formed. However, the eventual structure of the industry was not yet clear. No truly dominant firms had appeared. The note is intended to provide background information on Lotus Development Corp. That case contains a description of the strategy and financing of a producer of software. The note could also be used as a basis for discussion of the evolution of industries per se.
Swot Analysis of "Note on the Microcomputer Software Industry--January 1982" written by William A. Sahlman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Microcomputer 1982 facing as an external strategic factors. Some of the topics covered in Note on the Microcomputer Software Industry--January 1982 case study are - Strategic Management Strategies, Technology, Venture capital and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Note on the Microcomputer Software Industry--January 1982 casestudy better are - – cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, increasing commodity prices, wage bills are increasing, there is backlash against globalization,
geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Note on the Microcomputer Software Industry--January 1982
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Note on the Microcomputer Software Industry--January 1982 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Microcomputer 1982, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Microcomputer 1982 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 Note on the Microcomputer Software Industry--January 1982 can be done for the following purposes –
1. Strategic planning using facts provided in Note on the Microcomputer Software Industry--January 1982 case study
2. Improving business portfolio management of Microcomputer 1982
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Microcomputer 1982
Strengths Note on the Microcomputer Software Industry--January 1982 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Microcomputer 1982 in Note on the Microcomputer Software Industry--January 1982 Harvard Business Review case study are -
High switching costs
– The high switching costs that Microcomputer 1982 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.
Ability to lead change in Finance & Accounting field
– Microcomputer 1982 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 Microcomputer 1982 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 Microcomputer 1982 in the sector have low bargaining power. Note on the Microcomputer Software Industry--January 1982 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Microcomputer 1982 to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Microcomputer 1982 is present in almost all the verticals within the industry. This has provided firm in Note on the Microcomputer Software Industry--January 1982 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
– Microcomputer 1982 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Microcomputer 1982 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.
High brand equity
– Microcomputer 1982 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Microcomputer 1982 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Microcomputer 1982 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Microcomputer 1982 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 Microcomputer 1982 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Note on the Microcomputer Software Industry--January 1982 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Microcomputer 1982 is one of the most innovative firm in sector. Manager in Note on the Microcomputer Software Industry--January 1982 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Microcomputer 1982 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 William A. Sahlman 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.
Cross disciplinary teams
– Horizontal connected teams at the Microcomputer 1982 are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Organizational Resilience of Microcomputer 1982
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Microcomputer 1982 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Note on the Microcomputer Software Industry--January 1982 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Note on the Microcomputer Software Industry--January 1982 are -
Slow decision making process
– As mentioned earlier in the report, Microcomputer 1982 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. Microcomputer 1982 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Note on the Microcomputer Software Industry--January 1982, it seems that the employees of Microcomputer 1982 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Microcomputer 1982 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Note on the Microcomputer Software Industry--January 1982 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Microcomputer 1982 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Note on the Microcomputer Software Industry--January 1982, in the dynamic environment Microcomputer 1982 has struggled to respond to the nimble upstart competition. Microcomputer 1982 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Microcomputer 1982 products
– To increase the profitability and margins on the products, Microcomputer 1982 needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Note on the Microcomputer Software Industry--January 1982 HBR case study mentions - Microcomputer 1982 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.
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 Microcomputer 1982 supply chain. Even after few cautionary changes mentioned in the HBR case study - Note on the Microcomputer Software Industry--January 1982, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Microcomputer 1982 vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Microcomputer 1982 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.
Increasing silos among functional specialists
– The organizational structure of Microcomputer 1982 is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Microcomputer 1982 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Microcomputer 1982 to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Note on the Microcomputer Software Industry--January 1982 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 Microcomputer 1982 has relatively successful track record of launching new products.
Opportunities Note on the Microcomputer Software Industry--January 1982 | 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 Note on the Microcomputer Software Industry--January 1982 are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Microcomputer 1982 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. Microcomputer 1982 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.
Better consumer reach
– The expansion of the 5G network will help Microcomputer 1982 to increase its market reach. Microcomputer 1982 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.
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 Microcomputer 1982 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.
Creating value in data economy
– The success of analytics program of Microcomputer 1982 has opened avenues for new revenue streams for the organization in the industry. This can help Microcomputer 1982 to build a more holistic ecosystem as suggested in the Note on the Microcomputer Software Industry--January 1982 case study. Microcomputer 1982 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Microcomputer 1982 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Microcomputer 1982 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Microcomputer 1982 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Microcomputer 1982 in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, Microcomputer 1982 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.
Buying journey improvements
– Microcomputer 1982 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Note on the Microcomputer Software Industry--January 1982 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.
Learning at scale
– Online learning technologies has now opened space for Microcomputer 1982 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.
Developing new processes and practices
– Microcomputer 1982 can develop new processes and procedures in Finance & Accounting 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.
Manufacturing automation
– Microcomputer 1982 can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Threats Note on the Microcomputer Software Industry--January 1982 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Note on the Microcomputer Software Industry--January 1982 are -
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 Microcomputer 1982.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Microcomputer 1982 in the Finance & Accounting industry. The Finance & Accounting 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.
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. Microcomputer 1982 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.
High dependence on third party suppliers
– Microcomputer 1982 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.
Stagnating economy with rate increase
– Microcomputer 1982 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.
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 Microcomputer 1982 business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Microcomputer 1982 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 Finance & Accounting industry regulations.
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.
Increasing wage structure of Microcomputer 1982
– 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 Microcomputer 1982.
Technology acceleration in Forth Industrial Revolution
– Microcomputer 1982 has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Microcomputer 1982 needs to keep up with the evolution of technology in the Finance & Accounting 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.
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 Microcomputer 1982 in the Finance & Accounting sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Microcomputer 1982 is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Note on the Microcomputer Software Industry--January 1982 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 Note on the Microcomputer Software Industry--January 1982 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 Note on the Microcomputer Software Industry--January 1982 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 Note on the Microcomputer Software Industry--January 1982 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 Note on the Microcomputer Software Industry--January 1982 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 Microcomputer 1982 needs to make to build a sustainable competitive advantage.