Battle in the Air (A): Intrinsic and China's Wireless Internet Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Battle in the Air (A): Intrinsic and China's Wireless Internet Industry
Intrinsic Technology Ltd. is a Shanghai-based wireless Internet software provider. China has a large number of mobile phone users and the market is growing. Various domestic and overseas companies are competing to capture a part of this market. Intrinsic recognized the opportunity to tap into the mobile phone market and was one of the first to offer these users wireless Internet technology. The founder of the company must decide what the next step should be in this emerging market based in a developing country and in light of increasing competition.
Swot Analysis of "Battle in the Air (A): Intrinsic and China's Wireless Internet Industry" written by Wei Lu, Shen Zhang, Wu Wanlin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Intrinsic Wireless facing as an external strategic factors. Some of the topics covered in Battle in the Air (A): Intrinsic and China's Wireless Internet Industry case study are - Strategic Management Strategies, Emerging markets, Internet, Marketing, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Battle in the Air (A): Intrinsic and China's Wireless Internet Industry casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , increasing energy prices, cloud computing is disrupting traditional business models, increasing commodity prices, technology disruption, central banks are concerned over increasing inflation,
increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Battle in the Air (A): Intrinsic and China's Wireless Internet Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Battle in the Air (A): Intrinsic and China's Wireless Internet Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Intrinsic Wireless, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Intrinsic Wireless 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 Battle in the Air (A): Intrinsic and China's Wireless Internet Industry can be done for the following purposes –
1. Strategic planning using facts provided in Battle in the Air (A): Intrinsic and China's Wireless Internet Industry case study
2. Improving business portfolio management of Intrinsic Wireless
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 Intrinsic Wireless
Strengths Battle in the Air (A): Intrinsic and China's Wireless Internet Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Intrinsic Wireless in Battle in the Air (A): Intrinsic and China's Wireless Internet Industry Harvard Business Review case study are -
Training and development
– Intrinsic Wireless has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Battle in the Air (A): Intrinsic and China's Wireless Internet Industry 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 Battle in the Air (A): Intrinsic and China's Wireless Internet Industry 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.
Organizational Resilience of Intrinsic Wireless
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Intrinsic Wireless does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Intrinsic Wireless has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Intrinsic Wireless to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Intrinsic Wireless in the sector have low bargaining power. Battle in the Air (A): Intrinsic and China's Wireless Internet Industry has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Intrinsic Wireless to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Intrinsic Wireless is one of the most innovative firm in sector. Manager in Battle in the Air (A): Intrinsic and China's Wireless Internet Industry Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Intrinsic Wireless in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Intrinsic Wireless has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Intrinsic Wireless 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.
Ability to recruit top talent
– Intrinsic Wireless is one of the leading recruiters in the industry. Managers in the Battle in the Air (A): Intrinsic and China's Wireless Internet Industry are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Strategy & Execution industry
– Battle in the Air (A): Intrinsic and China's Wireless Internet Industry firm has clearly differentiated products in the market place. This has enabled Intrinsic Wireless to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Intrinsic Wireless to invest into research and development (R&D) and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Intrinsic Wireless digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Intrinsic Wireless 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.
High switching costs
– The high switching costs that Intrinsic Wireless 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.
Weaknesses Battle in the Air (A): Intrinsic and China's Wireless Internet Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Battle in the Air (A): Intrinsic and China's Wireless Internet Industry are -
No frontier risks strategy
– After analyzing the HBR case study Battle in the Air (A): Intrinsic and China's Wireless Internet Industry, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Increasing silos among functional specialists
– The organizational structure of Intrinsic Wireless is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Intrinsic Wireless needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Intrinsic Wireless to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Battle in the Air (A): Intrinsic and China's Wireless Internet Industry 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 Battle in the Air (A): Intrinsic and China's Wireless Internet Industry can leverage the sales team experience to cultivate customer relationships as Intrinsic Wireless is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Intrinsic Wireless 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Intrinsic Wireless is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Battle in the Air (A): Intrinsic and China's Wireless Internet Industry 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 cash cycle compare to competitors
Intrinsic Wireless 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Battle in the Air (A): Intrinsic and China's Wireless Internet Industry 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 Intrinsic Wireless 's lucrative customers.
Lack of clear differentiation of Intrinsic Wireless products
– To increase the profitability and margins on the products, Intrinsic Wireless needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Battle in the Air (A): Intrinsic and China's Wireless Internet Industry, it seems that the employees of Intrinsic Wireless 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Intrinsic Wireless 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.
Interest costs
– Compare to the competition, Intrinsic Wireless 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 Battle in the Air (A): Intrinsic and China's Wireless Internet Industry | 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 Battle in the Air (A): Intrinsic and China's Wireless Internet Industry are -
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 Intrinsic Wireless 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.
Manufacturing automation
– Intrinsic Wireless 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Intrinsic Wireless 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Intrinsic Wireless can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Intrinsic Wireless has opened avenues for new revenue streams for the organization in the industry. This can help Intrinsic Wireless to build a more holistic ecosystem as suggested in the Battle in the Air (A): Intrinsic and China's Wireless Internet Industry case study. Intrinsic Wireless can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Intrinsic Wireless 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. Intrinsic Wireless 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 Intrinsic Wireless to increase its market reach. Intrinsic Wireless 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Intrinsic Wireless can use these opportunities to build new business models that can help the communities that Intrinsic Wireless operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Learning at scale
– Online learning technologies has now opened space for Intrinsic Wireless 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 Intrinsic Wireless 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 Intrinsic Wireless to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Intrinsic Wireless 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, Battle in the Air (A): Intrinsic and China's Wireless Internet Industry, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Intrinsic Wireless 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.
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. Intrinsic Wireless can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Battle in the Air (A): Intrinsic and China's Wireless Internet Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Battle in the Air (A): Intrinsic and China's Wireless Internet Industry are -
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. Intrinsic Wireless needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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. Intrinsic Wireless 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.
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.
Technology acceleration in Forth Industrial Revolution
– Intrinsic Wireless has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Intrinsic Wireless 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Intrinsic Wireless with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Intrinsic Wireless is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Battle in the Air (A): Intrinsic and China's Wireless Internet Industry, Intrinsic Wireless 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 .
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 Intrinsic Wireless in the Strategy & Execution sector and impact the bottomline of the organization.
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 Intrinsic Wireless business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Intrinsic Wireless 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 Battle in the Air (A): Intrinsic and China's Wireless Internet Industry .
Consumer confidence and its impact on Intrinsic Wireless demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Regulatory challenges
– Intrinsic Wireless 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.
Weighted SWOT Analysis of Battle in the Air (A): Intrinsic and China's Wireless Internet Industry 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 Battle in the Air (A): Intrinsic and China's Wireless Internet Industry 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 Battle in the Air (A): Intrinsic and China's Wireless Internet Industry 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 Battle in the Air (A): Intrinsic and China's Wireless Internet Industry 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 Battle in the Air (A): Intrinsic and China's Wireless Internet Industry 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 Intrinsic Wireless needs to make to build a sustainable competitive advantage.