Swot Analysis of "Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note" written by Ramon Casadesus-Masanell, Joan Enric Ricart Costa includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Models Module facing as an external strategic factors. Some of the topics covered in Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note casestudy better are - – cloud computing is disrupting traditional business models, increasing energy prices, supply chains are disrupted by pandemic , 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%, talent flight as more people leaving formal jobs,
increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Models Module, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Models Module 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 Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note can be done for the following purposes –
1. Strategic planning using facts provided in Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note case study
2. Improving business portfolio management of Models Module
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 Models Module
Strengths Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Models Module in Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note Harvard Business Review case study are -
Effective Research and Development (R&D)
– Models Module 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 Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Models Module has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note 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 Models Module 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
– Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note firm has clearly differentiated products in the market place. This has enabled Models Module to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Models Module to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Models Module are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Low bargaining power of suppliers
– Suppliers of Models Module in the sector have low bargaining power. Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Models Module to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Models Module 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 Models Module is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Models Module has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Models Module to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Models Module 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 Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Models Module is present in almost all the verticals within the industry. This has provided firm in Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note 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.
Superior customer experience
– The customer experience strategy of Models Module in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Models Module 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 Ramon Casadesus-Masanell, Joan Enric Ricart Costa 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.
Weaknesses Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note are -
Aligning sales with marketing
– It come across in the case study Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note 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 Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note can leverage the sales team experience to cultivate customer relationships as Models Module is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Models Module 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.
Low market penetration in new markets
– Outside its home market of Models Module, firm in the HBR case study Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note HBR case study mentions - Models Module 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.
Capital Spending Reduction
– Even during the low interest decade, Models Module 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.
No frontier risks strategy
– After analyzing the HBR case study Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note, 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.
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 Models Module supply chain. Even after few cautionary changes mentioned in the HBR case study - Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Models Module vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note 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 Models Module has relatively successful track record of launching new products.
Need for greater diversity
– Models Module 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 Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note, is just above the industry average. Models Module 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.
Lack of clear differentiation of Models Module products
– To increase the profitability and margins on the products, Models Module needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note | 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 Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Models Module can use these opportunities to build new business models that can help the communities that Models Module operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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 Models Module in the consumer business. Now Models Module can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Models Module 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, Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Models Module can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Models Module 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 Models Module to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Models Module has opened avenues for new revenue streams for the organization in the industry. This can help Models Module to build a more holistic ecosystem as suggested in the Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note case study. Models Module can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Models Module 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.
Loyalty marketing
– Models Module has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Models Module can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Models Module to increase its market reach. Models Module will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Developing new processes and practices
– Models Module 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 Models Module 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Models Module 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.
Threats Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Models Module 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 Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note .
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
– Models Module has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Models Module 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.
Stagnating economy with rate increase
– Models Module can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing wage structure of Models Module
– 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 Models Module.
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 Models Module business can come under increasing regulations regarding data privacy, data security, etc.
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. Models Module needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Models Module 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. Models Module can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Models Module 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.
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 Models Module.
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. Models Module 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.
Regulatory challenges
– Models Module 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.
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.
Weighted SWOT Analysis of Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note 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 Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note 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 Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note 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 Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note 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 Competing through Business Models (B): Competitive Strategy vs. Business Models, Module Note 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 Models Module needs to make to build a sustainable competitive advantage.
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