Swot Analysis of "Polaroid-Kodak (B3)" written by Michael E. Porter includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that B3 Polaroid facing as an external strategic factors. Some of the topics covered in Polaroid-Kodak (B3) case study are - Strategic Management Strategies, Intellectual property, Marketing, Product development, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Polaroid-Kodak (B3) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs,
geopolitical disruptions, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Polaroid-Kodak (B3)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Polaroid-Kodak (B3) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the B3 Polaroid, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which B3 Polaroid 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 Polaroid-Kodak (B3) can be done for the following purposes –
1. Strategic planning using facts provided in Polaroid-Kodak (B3) case study
2. Improving business portfolio management of B3 Polaroid
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 B3 Polaroid
Strengths Polaroid-Kodak (B3) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of B3 Polaroid in Polaroid-Kodak (B3) Harvard Business Review case study are -
Effective Research and Development (R&D)
– B3 Polaroid 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 Polaroid-Kodak (B3) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Polaroid-Kodak (B3) firm has clearly differentiated products in the market place. This has enabled B3 Polaroid to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped B3 Polaroid to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the B3 Polaroid 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.
Superior customer experience
– The customer experience strategy of B3 Polaroid in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– B3 Polaroid is one of the leading recruiters in the industry. Managers in the Polaroid-Kodak (B3) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– B3 Polaroid is present in almost all the verticals within the industry. This has provided firm in Polaroid-Kodak (B3) 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.
Ability to lead change in Strategy & Execution field
– B3 Polaroid 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 B3 Polaroid in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– B3 Polaroid has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. B3 Polaroid 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 B3 Polaroid digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. B3 Polaroid 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.
Training and development
– B3 Polaroid has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Polaroid-Kodak (B3) 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.
Innovation driven organization
– B3 Polaroid is one of the most innovative firm in sector. Manager in Polaroid-Kodak (B3) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– B3 Polaroid has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled B3 Polaroid to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Polaroid-Kodak (B3) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Polaroid-Kodak (B3) are -
High bargaining power of channel partners
– Because of the regulatory requirements, Michael E. Porter suggests that, B3 Polaroid 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 B3 Polaroid 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 operating costs
– Compare to the competitors, firm in the HBR case study Polaroid-Kodak (B3) 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 B3 Polaroid 's lucrative customers.
Slow to strategic competitive environment developments
– As Polaroid-Kodak (B3) HBR case study mentions - B3 Polaroid 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.
No frontier risks strategy
– After analyzing the HBR case study Polaroid-Kodak (B3), 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Polaroid-Kodak (B3), in the dynamic environment B3 Polaroid has struggled to respond to the nimble upstart competition. B3 Polaroid has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Polaroid-Kodak (B3) 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 B3 Polaroid has relatively successful track record of launching new products.
Products dominated business model
– Even though B3 Polaroid 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 - Polaroid-Kodak (B3) should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of B3 Polaroid, firm in the HBR case study Polaroid-Kodak (B3) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of B3 Polaroid products
– To increase the profitability and margins on the products, B3 Polaroid needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Polaroid-Kodak (B3), is just above the industry average. B3 Polaroid 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.
Opportunities Polaroid-Kodak (B3) | 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 Polaroid-Kodak (B3) are -
Better consumer reach
– The expansion of the 5G network will help B3 Polaroid to increase its market reach. B3 Polaroid 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.
Using analytics as competitive advantage
– B3 Polaroid 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 Polaroid-Kodak (B3) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help B3 Polaroid to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– B3 Polaroid 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.
Buying journey improvements
– B3 Polaroid can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Polaroid-Kodak (B3) 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, B3 Polaroid is facing challenges because of the dominance of functional experts in the organization. Polaroid-Kodak (B3) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for B3 Polaroid 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.
Leveraging digital technologies
– B3 Polaroid 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 B3 Polaroid 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, B3 Polaroid can use these opportunities to build new business models that can help the communities that B3 Polaroid operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Developing new processes and practices
– B3 Polaroid 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, B3 Polaroid 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, Polaroid-Kodak (B3), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. B3 Polaroid 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. B3 Polaroid 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 B3 Polaroid has opened avenues for new revenue streams for the organization in the industry. This can help B3 Polaroid to build a more holistic ecosystem as suggested in the Polaroid-Kodak (B3) case study. B3 Polaroid can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Polaroid-Kodak (B3) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Polaroid-Kodak (B3) are -
Environmental challenges
– B3 Polaroid needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. B3 Polaroid can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. B3 Polaroid can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. B3 Polaroid needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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. B3 Polaroid 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.
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 B3 Polaroid in the Strategy & Execution sector and impact the bottomline 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 B3 Polaroid.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents B3 Polaroid with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– B3 Polaroid has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, B3 Polaroid 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 B3 Polaroid 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.
Consumer confidence and its impact on B3 Polaroid 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 Polaroid-Kodak (B3), B3 Polaroid may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, B3 Polaroid 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 Polaroid-Kodak (B3) .
High dependence on third party suppliers
– B3 Polaroid 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.
Weighted SWOT Analysis of Polaroid-Kodak (B3) 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 Polaroid-Kodak (B3) 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 Polaroid-Kodak (B3) 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 Polaroid-Kodak (B3) 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 Polaroid-Kodak (B3) 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 B3 Polaroid needs to make to build a sustainable competitive advantage.
