Cutting the Strategy Diamond in High-Technology Ventures SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Cutting the Strategy Diamond in High-Technology Ventures
This article presents the "strategy diamond," which extends received strategic management theory by integrating the positional view and the resource-based view, the formulation and implementation of strategy, and the firm's internal selection environment into one relatively simple conceptual framework of dynamic forces driving firm evolution. The article suggests that this framework can be helpful in stimulating further research to drive towards a dynamic theory of strategy. The strategy diamond facilitates understanding the dynamic interplays between strategy logic and strategy execution, and its jargon-free "natural language form" may facilitate strategic conversations and help inculcate a strategic mentality into organizations. This framework has been useful for senior executives in two major corporations. Four case studies highlight how the framework may help instill strategic discipline in high-technology ventures operating in extremely dynamic environments.
Swot Analysis of "Cutting the Strategy Diamond in High-Technology Ventures" written by Robert A. Burgelman, Robert E. Siegel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Diamond Dynamic facing as an external strategic factors. Some of the topics covered in Cutting the Strategy Diamond in High-Technology Ventures case study are - Strategic Management Strategies, Marketing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Cutting the Strategy Diamond in High-Technology Ventures casestudy better are - – there is backlash against globalization, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, central banks are concerned over increasing inflation, increasing energy prices,
talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Cutting the Strategy Diamond in High-Technology Ventures
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cutting the Strategy Diamond in High-Technology Ventures case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Diamond Dynamic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Diamond Dynamic 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 Cutting the Strategy Diamond in High-Technology Ventures can be done for the following purposes –
1. Strategic planning using facts provided in Cutting the Strategy Diamond in High-Technology Ventures case study
2. Improving business portfolio management of Diamond Dynamic
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 Diamond Dynamic
Strengths Cutting the Strategy Diamond in High-Technology Ventures | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Diamond Dynamic in Cutting the Strategy Diamond in High-Technology Ventures Harvard Business Review case study are -
Organizational Resilience of Diamond Dynamic
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Diamond Dynamic does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Diamond Dynamic 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.
Analytics focus
– Diamond Dynamic 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 Robert A. Burgelman, Robert E. Siegel 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.
Ability to recruit top talent
– Diamond Dynamic is one of the leading recruiters in the industry. Managers in the Cutting the Strategy Diamond in High-Technology Ventures are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Diamond Dynamic 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 Diamond Dynamic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Cutting the Strategy Diamond in High-Technology Ventures Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Diamond Dynamic 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 Cutting the Strategy Diamond in High-Technology Ventures - 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
– Diamond Dynamic has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Cutting the Strategy Diamond in High-Technology Ventures 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.
Strong track record of project management
– Diamond Dynamic is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Diamond Dynamic is present in almost all the verticals within the industry. This has provided firm in Cutting the Strategy Diamond in High-Technology Ventures 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.
Cross disciplinary teams
– Horizontal connected teams at the Diamond Dynamic 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.
Operational resilience
– The operational resilience strategy in the Cutting the Strategy Diamond in High-Technology Ventures 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Cutting the Strategy Diamond in High-Technology Ventures firm has clearly differentiated products in the market place. This has enabled Diamond Dynamic to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Diamond Dynamic to invest into research and development (R&D) and innovation.
Weaknesses Cutting the Strategy Diamond in High-Technology Ventures | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cutting the Strategy Diamond in High-Technology Ventures are -
High operating costs
– Compare to the competitors, firm in the HBR case study Cutting the Strategy Diamond in High-Technology Ventures 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 Diamond Dynamic 's lucrative customers.
Lack of clear differentiation of Diamond Dynamic products
– To increase the profitability and margins on the products, Diamond Dynamic needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert A. Burgelman, Robert E. Siegel suggests that, Diamond Dynamic is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Skills based hiring
– The stress on hiring functional specialists at Diamond Dynamic 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Cutting the Strategy Diamond in High-Technology Ventures, it seems that the employees of Diamond Dynamic 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.
Aligning sales with marketing
– It come across in the case study Cutting the Strategy Diamond in High-Technology Ventures 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 Cutting the Strategy Diamond in High-Technology Ventures can leverage the sales team experience to cultivate customer relationships as Diamond Dynamic is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Cutting the Strategy Diamond in High-Technology Ventures HBR case study mentions - Diamond Dynamic 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Cutting the Strategy Diamond in High-Technology Ventures, is just above the industry average. Diamond Dynamic 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.
Increasing silos among functional specialists
– The organizational structure of Diamond Dynamic is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Diamond Dynamic needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Diamond Dynamic to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Diamond Dynamic 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Diamond Dynamic is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Cutting the Strategy Diamond in High-Technology Ventures can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Cutting the Strategy Diamond in High-Technology Ventures | 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 Cutting the Strategy Diamond in High-Technology Ventures are -
Creating value in data economy
– The success of analytics program of Diamond Dynamic has opened avenues for new revenue streams for the organization in the industry. This can help Diamond Dynamic to build a more holistic ecosystem as suggested in the Cutting the Strategy Diamond in High-Technology Ventures case study. Diamond Dynamic can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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, Diamond Dynamic can use these opportunities to build new business models that can help the communities that Diamond Dynamic operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Buying journey improvements
– Diamond Dynamic can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Cutting the Strategy Diamond in High-Technology Ventures 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.
Learning at scale
– Online learning technologies has now opened space for Diamond Dynamic 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.
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. Diamond Dynamic 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. Diamond Dynamic 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.
Using analytics as competitive advantage
– Diamond Dynamic 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 Cutting the Strategy Diamond in High-Technology Ventures - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Diamond Dynamic to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Diamond Dynamic in the consumer business. Now Diamond Dynamic can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Diamond Dynamic is facing challenges because of the dominance of functional experts in the organization. Cutting the Strategy Diamond in High-Technology Ventures 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.
Developing new processes and practices
– Diamond Dynamic 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Diamond Dynamic 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.
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. Diamond Dynamic can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Diamond Dynamic 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.
Building a culture of innovation
– managers at Diamond Dynamic 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 Cutting the Strategy Diamond in High-Technology Ventures External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cutting the Strategy Diamond in High-Technology Ventures are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Diamond Dynamic 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 Cutting the Strategy Diamond in High-Technology Ventures .
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 Diamond Dynamic business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Diamond Dynamic 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.
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. Diamond Dynamic 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.
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 Diamond Dynamic.
Shortening product life cycle
– it is one of the major threat that Diamond Dynamic is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Diamond Dynamic 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.
Stagnating economy with rate increase
– Diamond Dynamic 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
– Diamond Dynamic has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Diamond Dynamic 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.
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 Diamond Dynamic in the Strategy & Execution sector and impact the bottomline of the organization.
Consumer confidence and its impact on Diamond Dynamic 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.
Increasing wage structure of Diamond Dynamic
– 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 Diamond Dynamic.
Weighted SWOT Analysis of Cutting the Strategy Diamond in High-Technology Ventures 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 Cutting the Strategy Diamond in High-Technology Ventures 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 Cutting the Strategy Diamond in High-Technology Ventures 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 Cutting the Strategy Diamond in High-Technology Ventures 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 Cutting the Strategy Diamond in High-Technology Ventures 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 Diamond Dynamic needs to make to build a sustainable competitive advantage.