Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action
The Blue Ocean Strategy Implementation Self-Diagnostic is comprised of a series of probing questions that offer executive participants a practical tool for assessing the level of organizational hurdles that exist in their organization and the effectiveness of past and future strategies to overcome them. The diagnostic is divided into sections addressing the four key organizational hurdles (cognitive, resource, motivational, political) and one section on fair process.
Swot Analysis of "Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action" written by W. Chan Kim, Renee Mauborgne includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Diagnostic Ocean facing as an external strategic factors. Some of the topics covered in Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action case study are - Strategic Management Strategies, Competitive strategy, Government, International business, Leadership, Motivating people, Psychology, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action casestudy better are - – increasing energy prices, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, central banks are concerned over increasing inflation,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Diagnostic Ocean, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Diagnostic Ocean 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 Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action can be done for the following purposes –
1. Strategic planning using facts provided in Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action case study
2. Improving business portfolio management of Diagnostic Ocean
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 Diagnostic Ocean
Strengths Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Diagnostic Ocean in Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action Harvard Business Review case study are -
Effective Research and Development (R&D)
– Diagnostic Ocean 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 Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Diagnostic Ocean 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 W. Chan Kim, Renee Mauborgne 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.
Diverse revenue streams
– Diagnostic Ocean is present in almost all the verticals within the industry. This has provided firm in Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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.
Ability to lead change in Strategy & Execution field
– Diagnostic Ocean 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 Diagnostic Ocean in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Diagnostic Ocean has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Diagnostic Ocean 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
– Diagnostic Ocean is one of the leading recruiters in the industry. Managers in the Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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
– Diagnostic Ocean 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 Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Diagnostic Ocean has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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.
Superior customer experience
– The customer experience strategy of Diagnostic Ocean in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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.
Learning organization
- Diagnostic Ocean 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 Diagnostic Ocean is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Diagnostic Ocean in the sector have low bargaining power. Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Diagnostic Ocean to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action are -
Aligning sales with marketing
– It come across in the case study Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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 Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action can leverage the sales team experience to cultivate customer relationships as Diagnostic Ocean is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action HBR case study mentions - Diagnostic Ocean 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.
Low market penetration in new markets
– Outside its home market of Diagnostic Ocean, firm in the HBR case study Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Diagnostic Ocean 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 - Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Diagnostic Ocean is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Diagnostic Ocean needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Diagnostic Ocean to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action, it seems that the employees of Diagnostic Ocean 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action, in the dynamic environment Diagnostic Ocean has struggled to respond to the nimble upstart competition. Diagnostic Ocean has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, W. Chan Kim, Renee Mauborgne suggests that, Diagnostic Ocean 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.
No frontier risks strategy
– After analyzing the HBR case study Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action, 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, Diagnostic Ocean 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.
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 Diagnostic Ocean supply chain. Even after few cautionary changes mentioned in the HBR case study - Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Diagnostic Ocean vulnerable to further global disruptions in South East Asia.
Opportunities Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action | 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 Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action are -
Developing new processes and practices
– Diagnostic Ocean 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.
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 Diagnostic Ocean 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.
Buying journey improvements
– Diagnostic Ocean can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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.
Building a culture of innovation
– managers at Diagnostic Ocean 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Diagnostic Ocean 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 Diagnostic Ocean to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Diagnostic Ocean is facing challenges because of the dominance of functional experts in the organization. Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Diagnostic Ocean can use these opportunities to build new business models that can help the communities that Diagnostic Ocean operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Creating value in data economy
– The success of analytics program of Diagnostic Ocean has opened avenues for new revenue streams for the organization in the industry. This can help Diagnostic Ocean to build a more holistic ecosystem as suggested in the Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action case study. Diagnostic Ocean can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Diagnostic Ocean 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, Diagnostic Ocean 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.
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. Diagnostic Ocean can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Diagnostic Ocean 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. Diagnostic Ocean 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.
Learning at scale
– Online learning technologies has now opened space for Diagnostic Ocean 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.
Threats Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action are -
Consumer confidence and its impact on Diagnostic Ocean 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Diagnostic Ocean 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 Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action .
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. Diagnostic Ocean 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.
Increasing wage structure of Diagnostic Ocean
– 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 Diagnostic Ocean.
Environmental challenges
– Diagnostic Ocean 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. Diagnostic Ocean can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Diagnostic Ocean with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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 Diagnostic Ocean.
High dependence on third party suppliers
– Diagnostic Ocean 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action, Diagnostic Ocean 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 Diagnostic Ocean in the Strategy & Execution sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Diagnostic Ocean in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Weighted SWOT Analysis of Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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 Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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 Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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 Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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 Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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 Diagnostic Ocean needs to make to build a sustainable competitive advantage.
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