Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier
The Auto-Graphics, Inc. ("A-G") case is an example of a small business that has survived over three generations through adapting to industry and market trends, yet still faces challenges as technology continues inexorably to change the business environment. A-G competed in the public, academic, and consortia (PAC) segment of the library-automation industry. It was founded in 1950 in Alhambra, CA by Ira C. Cope and in 2011 was led by his grandson, Paul Cope.The case opens with Paul Cope's excitement and optimism about the future possibilities of the library-automation industry. His optimism was tempered by the fact that the library market was very mature and libraries in both Canada and the U.S. were confronted with shrinking budgets. Although Paul Cope was hopeful about the future possibilities of the library-automation industry, A-G had to find a way to increase revenues in its North American business in the face of declining library budgets. The case describes the library-automation industry, the market segments served, the products offered by the firms in the industry, the trends affecting the industry, and the challenges faced by incumbents in the industry. It then describes competition in the PAC segment, which was intense throughout the 2000s. Competing technologies included SaaS (Software as a Service) and open-systems software. Markets were also changing. One ongoing issue was that library patrons belonged to a generation accustomed to Google-like search engines and the latest and greatest technologies, so held high expectations for a library's ease of use and breadth of content. Libraries needed to make radical changes to redefine their relevancy with their community of users and to keep up with changes in technologies including eBooks, eJournals and other online resources. The case then describes A-G itself-how it innovates, its product line, and its financial statements over the past five years. The case ends with the challenges facing Paul Cope and A-G. The case will challenge students to integrate industry and competitive dynamics with market demands and technological trends and devise a set of worthy strategic alternatives commensurate with its financial resources to help A-G continue to grow in the future.
Swot Analysis of "Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier" written by Olukemi Sawyerr, Stanley Abraham includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Library Automation facing as an external strategic factors. Some of the topics covered in Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier case study are - Strategic Management Strategies, Entrepreneurial management, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, increasing household debt because of falling income levels, increasing energy prices, wage bills are increasing, cloud computing is disrupting traditional business models,
increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Library Automation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Library Automation 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 Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier can be done for the following purposes –
1. Strategic planning using facts provided in Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier case study
2. Improving business portfolio management of Library Automation
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 Library Automation
Strengths Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Library Automation in Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier Harvard Business Review case study are -
Analytics focus
– Library Automation 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 Olukemi Sawyerr, Stanley Abraham 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)
– Library Automation 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 Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Library Automation in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Library Automation has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Library Automation to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Library Automation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Library Automation 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.
Organizational Resilience of Library Automation
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Library Automation does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Library Automation 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 Library Automation in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Library Automation 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.
Innovation driven organization
– Library Automation is one of the most innovative firm in sector. Manager in Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Library Automation has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Library Automation 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.
Training and development
– Library Automation has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier 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.
Strong track record of project management
– Library Automation is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Library Automation is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier 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 Library Automation has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier, is just above the industry average. Library Automation 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier, in the dynamic environment Library Automation has struggled to respond to the nimble upstart competition. Library Automation has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Library Automation 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.
Lack of clear differentiation of Library Automation products
– To increase the profitability and margins on the products, Library Automation needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier 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 Library Automation 's lucrative customers.
Products dominated business model
– Even though Library Automation 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 - Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier, it seems that the employees of Library Automation don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High bargaining power of channel partners
– Because of the regulatory requirements, Olukemi Sawyerr, Stanley Abraham suggests that, Library Automation is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Interest costs
– Compare to the competition, Library Automation 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.
Opportunities Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier | 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 Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier are -
Creating value in data economy
– The success of analytics program of Library Automation has opened avenues for new revenue streams for the organization in the industry. This can help Library Automation to build a more holistic ecosystem as suggested in the Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier case study. Library Automation can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Library Automation in the consumer business. Now Library Automation can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Library Automation 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.
Loyalty marketing
– Library Automation 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.
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. Library Automation can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Library Automation 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, Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Library Automation 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 Library Automation to increase its market reach. Library Automation 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.
Developing new processes and practices
– Library Automation 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.
Manufacturing automation
– Library Automation 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.
Learning at scale
– Online learning technologies has now opened space for Library Automation 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Library Automation 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 Library Automation to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Library Automation can use these opportunities to build new business models that can help the communities that Library Automation operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier are -
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 Library Automation business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Library Automation 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Library Automation 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 Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier .
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. Library Automation can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Library Automation in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Library Automation 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.
Increasing wage structure of Library Automation
– 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 Library Automation.
High dependence on third party suppliers
– Library Automation 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.
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.
Consumer confidence and its impact on Library Automation 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.
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 Library Automation.
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. Library Automation will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Library Automation 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. Library Automation can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier 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 Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier 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 Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier 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 Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier 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 Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier 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 Library Automation needs to make to build a sustainable competitive advantage.
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