Value Palette: A Tool for Full Spectrum Strategy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Value Palette: A Tool for Full Spectrum Strategy
How might we spur new thinking about value creation as markets become more transparent and more demanding, as civil society organizations become more influential, and as capitalism itself mutates in response to drivers such as globalization? Managers will need new tools to help manage the new market demands. The most successful companies will design, market, and deliver well-balanced "Value Blends" to consumers, customers, and, ultimately, investors. Sound nonfinancial management will be a necessary but not sufficient condition for sustained market success. The business of business is value creation. Value creation processes around the world will need to become more transparent and intelligible if they are to be seen as politically legitimate. The Value Palette is an evolving conceptual tool designed to help managers think about and operate across the evolving Value Spectrum.
Authors :: John Elkington, Jed Emerson, Seb Beloe
Topics :: Strategy & Execution
Tags :: Business models, Globalization, Growth strategy, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Value Palette: A Tool for Full Spectrum Strategy" written by John Elkington, Jed Emerson, Seb Beloe includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Palette Spectrum facing as an external strategic factors. Some of the topics covered in Value Palette: A Tool for Full Spectrum Strategy case study are - Strategic Management Strategies, Business models, Globalization, Growth strategy, Social responsibility and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Value Palette: A Tool for Full Spectrum Strategy casestudy better are - – increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, technology disruption, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , geopolitical disruptions,
competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Value Palette: A Tool for Full Spectrum Strategy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Value Palette: A Tool for Full Spectrum Strategy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Palette Spectrum, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Palette Spectrum 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 Value Palette: A Tool for Full Spectrum Strategy can be done for the following purposes –
1. Strategic planning using facts provided in Value Palette: A Tool for Full Spectrum Strategy case study
2. Improving business portfolio management of Palette Spectrum
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 Palette Spectrum
Strengths Value Palette: A Tool for Full Spectrum Strategy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Palette Spectrum in Value Palette: A Tool for Full Spectrum Strategy Harvard Business Review case study are -
Strong track record of project management
– Palette Spectrum is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Strategy & Execution field
– Palette Spectrum 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 Palette Spectrum 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
– Palette Spectrum has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Palette Spectrum 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.
Innovation driven organization
– Palette Spectrum is one of the most innovative firm in sector. Manager in Value Palette: A Tool for Full Spectrum Strategy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Palette Spectrum 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 Value Palette: A Tool for Full Spectrum Strategy - 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
– Palette Spectrum has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Value Palette: A Tool for Full Spectrum Strategy 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Palette Spectrum digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Palette Spectrum 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.
Diverse revenue streams
– Palette Spectrum is present in almost all the verticals within the industry. This has provided firm in Value Palette: A Tool for Full Spectrum Strategy 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 Palette Spectrum in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Palette Spectrum is one of the leading recruiters in the industry. Managers in the Value Palette: A Tool for Full Spectrum Strategy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Palette Spectrum 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.
Operational resilience
– The operational resilience strategy in the Value Palette: A Tool for Full Spectrum Strategy 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.
Weaknesses Value Palette: A Tool for Full Spectrum Strategy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Value Palette: A Tool for Full Spectrum Strategy are -
Interest costs
– Compare to the competition, Palette Spectrum 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Value Palette: A Tool for Full Spectrum Strategy, in the dynamic environment Palette Spectrum has struggled to respond to the nimble upstart competition. Palette Spectrum has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Value Palette: A Tool for Full Spectrum Strategy, is just above the industry average. Palette Spectrum 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.
High cash cycle compare to competitors
Palette Spectrum has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Workers concerns about automation
– As automation is fast increasing in the segment, Palette Spectrum 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.
Lack of clear differentiation of Palette Spectrum products
– To increase the profitability and margins on the products, Palette Spectrum needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Palette Spectrum 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.
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 Palette Spectrum supply chain. Even after few cautionary changes mentioned in the HBR case study - Value Palette: A Tool for Full Spectrum Strategy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Palette Spectrum vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Palette Spectrum 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Value Palette: A Tool for Full Spectrum Strategy 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 Palette Spectrum has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Palette Spectrum is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Palette Spectrum needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Palette Spectrum to focus more on services rather than just following the product oriented approach.
Opportunities Value Palette: A Tool for Full Spectrum Strategy | 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 Value Palette: A Tool for Full Spectrum Strategy are -
Learning at scale
– Online learning technologies has now opened space for Palette Spectrum 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.
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. Palette Spectrum can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Palette Spectrum can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Palette Spectrum 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.
Using analytics as competitive advantage
– Palette Spectrum 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 Value Palette: A Tool for Full Spectrum Strategy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Palette Spectrum to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Palette Spectrum can use these opportunities to build new business models that can help the communities that Palette Spectrum operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Palette Spectrum 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, Value Palette: A Tool for Full Spectrum Strategy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Palette Spectrum has opened avenues for new revenue streams for the organization in the industry. This can help Palette Spectrum to build a more holistic ecosystem as suggested in the Value Palette: A Tool for Full Spectrum Strategy case study. Palette Spectrum can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Palette Spectrum is facing challenges because of the dominance of functional experts in the organization. Value Palette: A Tool for Full Spectrum Strategy 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.
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 Palette Spectrum in the consumer business. Now Palette Spectrum can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Palette Spectrum 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 Palette Spectrum 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 Palette Spectrum 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.
Threats Value Palette: A Tool for Full Spectrum Strategy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Value Palette: A Tool for Full Spectrum Strategy are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Palette Spectrum 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 Value Palette: A Tool for Full Spectrum Strategy .
Regulatory challenges
– Palette Spectrum 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.
High dependence on third party suppliers
– Palette Spectrum 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.
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 Palette Spectrum in the Strategy & Execution sector and impact the bottomline of the organization.
Environmental challenges
– Palette Spectrum 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. Palette Spectrum can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Palette Spectrum.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Palette Spectrum with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Value Palette: A Tool for Full Spectrum Strategy, Palette Spectrum 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 .
Increasing wage structure of Palette Spectrum
– 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 Palette Spectrum.
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 Palette Spectrum business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Palette Spectrum has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Palette Spectrum 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.
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 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 Value Palette: A Tool for Full Spectrum Strategy 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 Value Palette: A Tool for Full Spectrum Strategy 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 Value Palette: A Tool for Full Spectrum Strategy 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 Value Palette: A Tool for Full Spectrum Strategy 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 Value Palette: A Tool for Full Spectrum Strategy 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 Palette Spectrum needs to make to build a sustainable competitive advantage.