Identifying New Product Development Best Practice SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Identifying New Product Development Best Practice
New product development (NPD) practitioners are keen to benchmark NPD practices because identifying any practice that is able to more efficiently and/or effectively deliver a new product could represent the difference between success and failure. A common purpose is therefore to identify NPD best practices with the expectation that companies will manifest and sustain these to augment their NPD efforts. To help in identifying such practices, we present a framework developed from prior benchmarking studies, a Delphi methodology with leading experts, and a survey involving over 300 NPD practitioners. The uniqueness of the framework lies in its ability to distinguish NPD practice across seven dimensions: Strategy, Research, Commercialization, Process, Project Climate, Company Culture, and Metrics/Performance Measurement. The framework is also unique in that across each dimension, poor NPD practices are listed as a starting point from which to improve, alongside best practices to which companies should aspire. To further assist in continuous improvement, an audit tool is derived from the framework, suggesting investigative questions that practitioners can ask to evaluate their company's NPD efforts. We conclude with general observations about NPD practice as the continued search for NPD best practice endures.
Swot Analysis of "Identifying New Product Development Best Practice" written by Gloria Barczak, Kenneth B Kahn includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Npd Practice facing as an external strategic factors. Some of the topics covered in Identifying New Product Development Best Practice case study are - Strategic Management Strategies, Research & development, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Identifying New Product Development Best Practice casestudy better are - – increasing household debt because of falling income levels, geopolitical disruptions, supply chains are disrupted by pandemic , technology disruption, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, challanges to central banks by blockchain based private currencies,
increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Identifying New Product Development Best Practice
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Identifying New Product Development Best Practice case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Npd Practice, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Npd Practice 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 Identifying New Product Development Best Practice can be done for the following purposes –
1. Strategic planning using facts provided in Identifying New Product Development Best Practice case study
2. Improving business portfolio management of Npd Practice
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 Npd Practice
Strengths Identifying New Product Development Best Practice | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Npd Practice in Identifying New Product Development Best Practice Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Npd Practice in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Npd Practice is one of the leading recruiters in the industry. Managers in the Identifying New Product Development Best Practice are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Npd Practice
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Npd Practice does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– Identifying New Product Development Best Practice firm has clearly differentiated products in the market place. This has enabled Npd Practice to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Npd Practice to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Npd Practice 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 Identifying New Product Development Best Practice 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.
Learning organization
- Npd Practice 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 Npd Practice is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Identifying New Product Development Best Practice Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Npd Practice has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Npd Practice to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Npd Practice is one of the most innovative firm in sector. Manager in Identifying New Product Development Best Practice Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Npd Practice is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Npd Practice digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Npd Practice 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 lead change in Strategy & Execution field
– Npd Practice 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 Npd Practice in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Identifying New Product Development Best Practice | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Identifying New Product Development Best Practice are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Identifying New Product Development Best Practice 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 Npd Practice has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Npd Practice 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 cash cycle compare to competitors
Npd Practice 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Identifying New Product Development Best Practice, in the dynamic environment Npd Practice has struggled to respond to the nimble upstart competition. Npd Practice has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Npd Practice supply chain. Even after few cautionary changes mentioned in the HBR case study - Identifying New Product Development Best Practice, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Npd Practice vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Identifying New Product Development Best Practice 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 Identifying New Product Development Best Practice can leverage the sales team experience to cultivate customer relationships as Npd Practice is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Npd Practice is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Identifying New Product Development Best Practice can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Gloria Barczak, Kenneth B Kahn suggests that, Npd Practice 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.
Products dominated business model
– Even though Npd Practice has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Identifying New Product Development Best Practice should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Npd Practice is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Npd Practice needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Npd Practice to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Npd Practice 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.
Opportunities Identifying New Product Development Best Practice | 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 Identifying New Product Development Best Practice are -
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 Npd Practice in the consumer business. Now Npd Practice can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Npd Practice can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Npd Practice can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Identifying New Product Development Best Practice 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 Npd Practice 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.
Better consumer reach
– The expansion of the 5G network will help Npd Practice to increase its market reach. Npd Practice will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Leveraging digital technologies
– Npd Practice 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.
Creating value in data economy
– The success of analytics program of Npd Practice has opened avenues for new revenue streams for the organization in the industry. This can help Npd Practice to build a more holistic ecosystem as suggested in the Identifying New Product Development Best Practice case study. Npd Practice 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, Npd Practice can use these opportunities to build new business models that can help the communities that Npd Practice operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Building a culture of innovation
– managers at Npd Practice 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.
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. Npd Practice can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Npd Practice 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, Identifying New Product Development Best Practice, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Npd Practice is facing challenges because of the dominance of functional experts in the organization. Identifying New Product Development Best Practice 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Npd Practice can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats Identifying New Product Development Best Practice External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Identifying New Product Development Best Practice are -
Technology acceleration in Forth Industrial Revolution
– Npd Practice has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Npd Practice 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Npd Practice in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Regulatory challenges
– Npd Practice 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Identifying New Product Development Best Practice, Npd Practice 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 .
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Npd Practice can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Npd Practice 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.
Shortening product life cycle
– it is one of the major threat that Npd Practice is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Npd Practice in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Npd Practice 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 Identifying New Product Development Best Practice .
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 Npd Practice business can come under increasing regulations regarding data privacy, data security, etc.
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 Npd Practice.
Increasing wage structure of Npd Practice
– 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 Npd Practice.
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.
Weighted SWOT Analysis of Identifying New Product Development Best Practice 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 Identifying New Product Development Best Practice 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 Identifying New Product Development Best Practice 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 Identifying New Product Development Best Practice 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 Identifying New Product Development Best Practice 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 Npd Practice needs to make to build a sustainable competitive advantage.
