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 SWOT Analysis Solution
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 - – competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , wage bills are increasing,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, 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 -
High brand equity
– Diagnostic Ocean has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Diagnostic Ocean to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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.
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.
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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Diagnostic Ocean digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Diagnostic Ocean 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.
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.
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.
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.
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.
High switching costs
– The high switching costs that Diagnostic Ocean 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 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 -
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.
Skills based hiring
– The stress on hiring functional specialists at Diagnostic Ocean 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.
Capital Spending Reduction
– Even during the low interest decade, Diagnostic Ocean has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Diagnostic Ocean 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action 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 Diagnostic Ocean has relatively successful track record of launching new products.
Need for greater diversity
– Diagnostic Ocean 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action, is just above the industry average. Diagnostic Ocean 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.
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.
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.
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.
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 -
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 Diagnostic Ocean in the consumer business. Now Diagnostic Ocean can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Diagnostic Ocean can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Diagnostic Ocean in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
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.
Using analytics as competitive advantage
– Diagnostic Ocean has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Blue Ocean Strategy Implementation Self-Diagnostic: Tipping Point Leadership and Fair Process in Action - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Diagnostic Ocean to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
Leveraging digital technologies
– Diagnostic Ocean can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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 -
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.
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.
Stagnating economy with rate increase
– Diagnostic Ocean 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.
Technology acceleration in Forth Industrial Revolution
– Diagnostic Ocean has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Diagnostic Ocean 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.
Regulatory challenges
– Diagnostic Ocean 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.
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.
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.
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.
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 .
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 Diagnostic Ocean 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 Diagnostic Ocean with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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. Diagnostic Ocean can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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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