On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement)
French advertising company JCDecaux and the city of Paris jointly developed VA?lib', a wildly popular bicycle sharing system. Despite VA?lib's public appeal, vandalism and theft led to ballooning operating costs-costs borne by JCDecaux alone. The two parties opted to renegotiate their contract, which would impact prices, revenue sharing, cost allocation, and the operation of the system as a whole. Could the parties agree on a common strategy that would meet their objectives, while still delivering a first class bicycle sharing service to the city of Paris?
Swot Analysis of "On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement)" written by Peter A. Coles, Elena Corsi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bicycle Sharing facing as an external strategic factors. Some of the topics covered in On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) case study are - Strategic Management Strategies, Growth strategy, International business, Joint ventures, Marketing, Negotiations, Policy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) casestudy better are - – supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, technology disruption, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, etc
Introduction to SWOT Analysis of On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bicycle Sharing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bicycle Sharing 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 On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) can be done for the following purposes –
1. Strategic planning using facts provided in On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) case study
2. Improving business portfolio management of Bicycle Sharing
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 Bicycle Sharing
Strengths On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bicycle Sharing in On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) Harvard Business Review case study are -
Highly skilled collaborators
– Bicycle Sharing 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 On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Bicycle Sharing has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bicycle Sharing to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Bicycle Sharing is present in almost all the verticals within the industry. This has provided firm in On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) 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.
Low bargaining power of suppliers
– Suppliers of Bicycle Sharing in the sector have low bargaining power. On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bicycle Sharing to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Bicycle Sharing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bicycle Sharing 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.
Organizational Resilience of Bicycle Sharing
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bicycle Sharing does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Bicycle Sharing 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 On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Bicycle Sharing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bicycle Sharing 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.
Operational resilience
– The operational resilience strategy in the On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) 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.
High switching costs
– The high switching costs that Bicycle Sharing 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.
Learning organization
- Bicycle Sharing 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 Bicycle Sharing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Bicycle Sharing is one of the most innovative firm in sector. Manager in On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) are -
Low market penetration in new markets
– Outside its home market of Bicycle Sharing, firm in the HBR case study On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Bicycle Sharing 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement), in the dynamic environment Bicycle Sharing has struggled to respond to the nimble upstart competition. Bicycle Sharing has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Bicycle Sharing 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.
Increasing silos among functional specialists
– The organizational structure of Bicycle Sharing is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Bicycle Sharing needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bicycle Sharing to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Peter A. Coles, Elena Corsi suggests that, Bicycle Sharing 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.
No frontier risks strategy
– After analyzing the HBR case study On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement), 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 Bicycle Sharing 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 On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement), it seems that the employees of Bicycle Sharing 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bicycle Sharing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Bicycle Sharing products
– To increase the profitability and margins on the products, Bicycle Sharing needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) | 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 On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) are -
Building a culture of innovation
– managers at Bicycle Sharing 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.
Learning at scale
– Online learning technologies has now opened space for Bicycle Sharing 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bicycle Sharing 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
– Bicycle Sharing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) 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.
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 Bicycle Sharing 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.
Using analytics as competitive advantage
– Bicycle Sharing 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 On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bicycle Sharing to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Bicycle Sharing to increase its market reach. Bicycle Sharing 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.
Developing new processes and practices
– Bicycle Sharing 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, Bicycle Sharing 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, On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Bicycle Sharing can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Bicycle Sharing 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, Bicycle Sharing can use these opportunities to build new business models that can help the communities that Bicycle Sharing operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Manufacturing automation
– Bicycle Sharing 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.
Threats On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bicycle Sharing 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.
Technology acceleration in Forth Industrial Revolution
– Bicycle Sharing has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Bicycle Sharing 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.
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.
Stagnating economy with rate increase
– Bicycle Sharing 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 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.
High dependence on third party suppliers
– Bicycle Sharing high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Bicycle Sharing in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Bicycle Sharing 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.
Shortening product life cycle
– it is one of the major threat that Bicycle Sharing is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Bicycle Sharing needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Consumer confidence and its impact on Bicycle Sharing 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.
Environmental challenges
– Bicycle Sharing 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. Bicycle Sharing can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bicycle Sharing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) 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 On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) 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 On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) 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 On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) 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 On Two Wheels in Paris: The Velib' Bicycle-Sharing Program (Supplement) 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 Bicycle Sharing needs to make to build a sustainable competitive advantage.