Models of Innovation: Startups and Mature Corporations SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Models of Innovation: Startups and Mature Corporations
The innovation process occurs in two ways--the Corporate Model and the Entrepreneurship Model. Corporations have many competitive advantages that they can use to succeed against startups. In a one-on-one competition, the startup usually has less capital, fewer scientists and engineers, less legitimacy or brand presence, fewer strategic alliances, evolving organizational structures, and incomplete or even non-existent business processes. Young firms have the liabilities of newness and smallness, so they fail at higher rates than do their larger and older competitors. However, the structural and managerial advantages associated with established companies also disadvantage them. Innovation requires two important underlying conditions. First, resources must be mobile. Second, incentives must be aligned so that those who provide these resources, especially financial resources, succeed along with innovators who are engaged in risky activities that generally require extraordinary levels of effort. When resources are immobile, and incentives are misaligned, the innovation process in established firms slows. Under these circumstances, entrepreneurs can start companies, develop the capabilities of those companies, and bring new products to market relatively quickly.
Swot Analysis of "Models of Innovation: Startups and Mature Corporations" written by John Freeman, Jerome S. Engel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Innovation Resources facing as an external strategic factors. Some of the topics covered in Models of Innovation: Startups and Mature Corporations case study are - Strategic Management Strategies, Competitive strategy, Entrepreneurship, Innovation, Marketing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Models of Innovation: Startups and Mature Corporations casestudy better are - – wage bills are increasing, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, increasing energy prices,
talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Models of Innovation: Startups and Mature Corporations
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Models of Innovation: Startups and Mature Corporations case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Innovation Resources, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Innovation Resources 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 Models of Innovation: Startups and Mature Corporations can be done for the following purposes –
1. Strategic planning using facts provided in Models of Innovation: Startups and Mature Corporations case study
2. Improving business portfolio management of Innovation Resources
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 Innovation Resources
Strengths Models of Innovation: Startups and Mature Corporations | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Innovation Resources in Models of Innovation: Startups and Mature Corporations Harvard Business Review case study are -
Highly skilled collaborators
– Innovation Resources 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 Models of Innovation: Startups and Mature Corporations HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Innovation Resources
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Innovation Resources does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Innovation Resources has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Innovation Resources 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Innovation Resources digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Innovation Resources 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.
Effective Research and Development (R&D)
– Innovation Resources 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 Models of Innovation: Startups and Mature Corporations - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Innovation Resources 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 John Freeman, Jerome S. Engel 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.
Low bargaining power of suppliers
– Suppliers of Innovation Resources in the sector have low bargaining power. Models of Innovation: Startups and Mature Corporations has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Innovation Resources to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Innovation Resources 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 Innovation Resources is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Models of Innovation: Startups and Mature Corporations Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Strategy & Execution industry
– Models of Innovation: Startups and Mature Corporations firm has clearly differentiated products in the market place. This has enabled Innovation Resources to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Innovation Resources to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Innovation Resources is one of the leading recruiters in the industry. Managers in the Models of Innovation: Startups and Mature Corporations are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Strategy & Execution field
– Innovation Resources 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 Innovation Resources in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Innovation Resources has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Innovation Resources to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Models of Innovation: Startups and Mature Corporations | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Models of Innovation: Startups and Mature Corporations are -
Aligning sales with marketing
– It come across in the case study Models of Innovation: Startups and Mature Corporations 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 Models of Innovation: Startups and Mature Corporations can leverage the sales team experience to cultivate customer relationships as Innovation Resources is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Innovation Resources 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.
No frontier risks strategy
– After analyzing the HBR case study Models of Innovation: Startups and Mature Corporations, 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 Innovation Resources 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.
High cash cycle compare to competitors
Innovation Resources 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Models of Innovation: Startups and Mature Corporations, it seems that the employees of Innovation Resources don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Models of Innovation: Startups and Mature Corporations, in the dynamic environment Innovation Resources has struggled to respond to the nimble upstart competition. Innovation Resources has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Innovation Resources 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. Innovation Resources 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.
Need for greater diversity
– Innovation Resources 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 operating costs
– Compare to the competitors, firm in the HBR case study Models of Innovation: Startups and Mature Corporations 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 Innovation Resources 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Innovation Resources 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.
Opportunities Models of Innovation: Startups and Mature Corporations | 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 Models of Innovation: Startups and Mature Corporations are -
Manufacturing automation
– Innovation Resources 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.
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. Innovation Resources 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. Innovation Resources 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.
Creating value in data economy
– The success of analytics program of Innovation Resources has opened avenues for new revenue streams for the organization in the industry. This can help Innovation Resources to build a more holistic ecosystem as suggested in the Models of Innovation: Startups and Mature Corporations case study. Innovation Resources can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Innovation Resources 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 Models of Innovation: Startups and Mature Corporations - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Innovation Resources to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Innovation Resources 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.
Buying journey improvements
– Innovation Resources can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Models of Innovation: Startups and Mature Corporations 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.
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. Innovation Resources can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Innovation Resources 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Innovation Resources can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Innovation Resources can use these opportunities to build new business models that can help the communities that Innovation Resources operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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 Innovation Resources 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, Innovation Resources 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.
Building a culture of innovation
– managers at Innovation Resources 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.
Threats Models of Innovation: Startups and Mature Corporations External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Models of Innovation: Startups and Mature Corporations are -
Technology acceleration in Forth Industrial Revolution
– Innovation Resources has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Innovation Resources 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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Innovation Resources.
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.
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 Innovation Resources in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Innovation Resources
– 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 Innovation Resources.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Innovation Resources 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 Models of Innovation: Startups and Mature Corporations .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Innovation Resources with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Innovation Resources 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.
Shortening product life cycle
– it is one of the major threat that Innovation Resources is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Innovation Resources 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Models of Innovation: Startups and Mature Corporations, Innovation Resources 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 .
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. Innovation Resources needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Models of Innovation: Startups and Mature Corporations 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 Models of Innovation: Startups and Mature Corporations 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 Models of Innovation: Startups and Mature Corporations 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 Models of Innovation: Startups and Mature Corporations 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 Models of Innovation: Startups and Mature Corporations 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 Innovation Resources needs to make to build a sustainable competitive advantage.