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 - – there is increasing trade war between United States & China, geopolitical disruptions, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings,
central banks are concerned over increasing inflation, increasing commodity prices, 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 -
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.
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.
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.
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.
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.
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.
Sustainable margins compare to other players in Strategy & Execution industry
– Value Palette: A Tool for Full Spectrum Strategy firm has clearly differentiated products in the market place. This has enabled Palette Spectrum to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Palette Spectrum to invest into research and development (R&D) and innovation.
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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Palette Spectrum in the sector have low bargaining power. Value Palette: A Tool for Full Spectrum Strategy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Palette Spectrum to manage not only supply disruptions but also source products at highly competitive prices.
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.
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 -
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Value Palette: A Tool for Full Spectrum Strategy, it seems that the employees of Palette Spectrum 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.
No frontier risks strategy
– After analyzing the HBR case study Value Palette: A Tool for Full Spectrum Strategy, 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 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.
Low market penetration in new markets
– Outside its home market of Palette Spectrum, firm in the HBR case study Value Palette: A Tool for Full Spectrum Strategy 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 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.
Slow to strategic competitive environment developments
– As Value Palette: A Tool for Full Spectrum Strategy HBR case study mentions - Palette Spectrum 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.
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.
Slow decision making process
– As mentioned earlier in the report, Palette Spectrum has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Palette Spectrum even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study Value Palette: A Tool for Full Spectrum Strategy has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Palette Spectrum 's lucrative customers.
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 -
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Palette Spectrum 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 Palette Spectrum to hire the very best people irrespective of their geographical location.
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. Palette Spectrum 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. Palette Spectrum 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.
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.
Loyalty marketing
– Palette Spectrum 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.
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.
Manufacturing automation
– Palette Spectrum 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.
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.
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.
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.
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.
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 -
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 .
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. Palette Spectrum 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.
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.
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.
Stagnating economy with rate increase
– Palette Spectrum 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
– 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.
Consumer confidence and its impact on Palette Spectrum 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, 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 .
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. Palette Spectrum needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
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.
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.
