Competition and Strategy in Higher Education: Managing Complexity and Uncertainty SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Competition and Strategy in Higher Education: Managing Complexity and Uncertainty
Like several other nonprofit and for-profit industries, the higher education sector has been subject to a series of fundamental challenges in the past decade. Education used to be considered a public good, provided by nonprofit organizations that were unexposed to market pressure and had clear societal missions. Now, education is becoming a global service delivered by quasi-companies in an ever-more complex and competitive knowledge marketplace. To cope with these challenges, higher education institutions need an appropriate strategy, a necessity reflected in numerous calls for research on strategy in the higher education sector. This article's purpose is to contribute to this discussion by providing prescriptive guidance to higher education managers and policy makers. To this end, it proposes a SWOT (strengths, weaknesses, opportunities, threats) analysis illustrating eight key trends that will impact higher education and academia in the short-to-medium term. Drawing from these trends, three core challenges are identified that higher education institutions will face and that have fundamental implications for research and practice: (1) the need to enhance prestige and market share; (2) the need to embrace an entrepreneurial mindset; and (3) the need to expand interactions and value co-creation with key stakeholders.
Authors :: Francesca Pucciarelli, Andreas M. Kaplan
Swot Analysis of "Competition and Strategy in Higher Education: Managing Complexity and Uncertainty" written by Francesca Pucciarelli, Andreas M. Kaplan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Education Fundamental facing as an external strategic factors. Some of the topics covered in Competition and Strategy in Higher Education: Managing Complexity and Uncertainty case study are - Strategic Management Strategies, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Competition and Strategy in Higher Education: Managing Complexity and Uncertainty casestudy better are - – cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%,
there is backlash against globalization, increasing commodity prices, etc
Introduction to SWOT Analysis of Competition and Strategy in Higher Education: Managing Complexity and Uncertainty
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Competition and Strategy in Higher Education: Managing Complexity and Uncertainty case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Education Fundamental, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Education Fundamental 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 Competition and Strategy in Higher Education: Managing Complexity and Uncertainty can be done for the following purposes –
1. Strategic planning using facts provided in Competition and Strategy in Higher Education: Managing Complexity and Uncertainty case study
2. Improving business portfolio management of Education Fundamental
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 Education Fundamental
Strengths Competition and Strategy in Higher Education: Managing Complexity and Uncertainty | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Education Fundamental in Competition and Strategy in Higher Education: Managing Complexity and Uncertainty Harvard Business Review case study are -
Ability to recruit top talent
– Education Fundamental is one of the leading recruiters in the industry. Managers in the Competition and Strategy in Higher Education: Managing Complexity and Uncertainty are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Education Fundamental 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 Competition and Strategy in Higher Education: Managing Complexity and Uncertainty HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Education Fundamental 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Competition and Strategy in Higher Education: Managing Complexity and Uncertainty firm has clearly differentiated products in the market place. This has enabled Education Fundamental to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Education Fundamental to invest into research and development (R&D) and innovation.
Training and development
– Education Fundamental has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Competition and Strategy in Higher Education: Managing Complexity and Uncertainty 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.
Innovation driven organization
– Education Fundamental is one of the most innovative firm in sector. Manager in Competition and Strategy in Higher Education: Managing Complexity and Uncertainty Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Education Fundamental has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Education Fundamental to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Education Fundamental in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Education Fundamental 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 Francesca Pucciarelli, Andreas M. Kaplan 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.
Learning organization
- Education Fundamental 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 Education Fundamental is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Competition and Strategy in Higher Education: Managing Complexity and Uncertainty Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Education Fundamental
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Education Fundamental does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Education Fundamental in the sector have low bargaining power. Competition and Strategy in Higher Education: Managing Complexity and Uncertainty has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Education Fundamental to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Competition and Strategy in Higher Education: Managing Complexity and Uncertainty | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Competition and Strategy in Higher Education: Managing Complexity and Uncertainty are -
Low market penetration in new markets
– Outside its home market of Education Fundamental, firm in the HBR case study Competition and Strategy in Higher Education: Managing Complexity and Uncertainty needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Competition and Strategy in Higher Education: Managing Complexity and Uncertainty HBR case study mentions - Education Fundamental 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.
Skills based hiring
– The stress on hiring functional specialists at Education Fundamental 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.
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 Education Fundamental supply chain. Even after few cautionary changes mentioned in the HBR case study - Competition and Strategy in Higher Education: Managing Complexity and Uncertainty, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Education Fundamental vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Competition and Strategy in Higher Education: Managing Complexity and Uncertainty, it seems that the employees of Education Fundamental 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Competition and Strategy in Higher Education: Managing Complexity and Uncertainty, is just above the industry average. Education Fundamental 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.
No frontier risks strategy
– After analyzing the HBR case study Competition and Strategy in Higher Education: Managing Complexity and Uncertainty, 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.
Interest costs
– Compare to the competition, Education Fundamental 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.
Products dominated business model
– Even though Education Fundamental 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 - Competition and Strategy in Higher Education: Managing Complexity and Uncertainty should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Education Fundamental 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Francesca Pucciarelli, Andreas M. Kaplan suggests that, Education Fundamental 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.
Opportunities Competition and Strategy in Higher Education: Managing Complexity and Uncertainty | 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 Competition and Strategy in Higher Education: Managing Complexity and Uncertainty are -
Building a culture of innovation
– managers at Education Fundamental 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Education Fundamental 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.
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 Education Fundamental 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
– Education Fundamental 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.
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. Education Fundamental 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 Education Fundamental to increase its market reach. Education Fundamental 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Education Fundamental 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, Competition and Strategy in Higher Education: Managing Complexity and Uncertainty, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Education Fundamental 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. Education Fundamental 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Education Fundamental can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Education Fundamental is facing challenges because of the dominance of functional experts in the organization. Competition and Strategy in Higher Education: Managing Complexity and Uncertainty case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Developing new processes and practices
– Education Fundamental 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.
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 Education Fundamental in the consumer business. Now Education Fundamental can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Education Fundamental 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 Education Fundamental to hire the very best people irrespective of their geographical location.
Threats Competition and Strategy in Higher Education: Managing Complexity and Uncertainty External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Competition and Strategy in Higher Education: Managing Complexity and Uncertainty are -
Consumer confidence and its impact on Education Fundamental 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Education Fundamental 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 Competition and Strategy in Higher Education: Managing Complexity and Uncertainty .
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.
Regulatory challenges
– Education Fundamental 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.
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. Education Fundamental 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.
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. Education Fundamental can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Education Fundamental business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Education Fundamental with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Education Fundamental 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Competition and Strategy in Higher Education: Managing Complexity and Uncertainty, Education Fundamental 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 .
Shortening product life cycle
– it is one of the major threat that Education Fundamental is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Education Fundamental.
Weighted SWOT Analysis of Competition and Strategy in Higher Education: Managing Complexity and Uncertainty 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 Competition and Strategy in Higher Education: Managing Complexity and Uncertainty 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 Competition and Strategy in Higher Education: Managing Complexity and Uncertainty 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 Competition and Strategy in Higher Education: Managing Complexity and Uncertainty 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 Competition and Strategy in Higher Education: Managing Complexity and Uncertainty 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 Education Fundamental needs to make to build a sustainable competitive advantage.
