Intellectual Property Strategy at North Technology Group-Sailing Downwind SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Intellectual Property Strategy at North Technology Group-Sailing Downwind
To maximize their effectiveness, color cases should be printed in color.North Sails is the world's leading sailmaker. The company commands a global market share of more than 50% and is largely responsible for the rapid technological progress in the sailmaking industry over the past 30 years. CEO Tom Whidden needs to consider how to best defend the company's leading position. Specifically, North currently uses neither patents nor copyright to protect its technology. The company even allows its designers to use its software when they do independent work. The case encourages a discussion of the role of intellectual property rights in safeguarding technology and know-how. By highlighting the costs and benefits of patents and copyright, the case points to a challenge that is common across many companies: Their most valuable assets are largely intangible, and these assets cannot easily be pinned down and protected. North's solution to this challenge is highly unusual and creative.
Authors :: Felix Oberholzer-Gee, William W. Fisher III
Swot Analysis of "Intellectual Property Strategy at North Technology Group-Sailing Downwind" written by Felix Oberholzer-Gee, William W. Fisher III includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Copyright Patents facing as an external strategic factors. Some of the topics covered in Intellectual Property Strategy at North Technology Group-Sailing Downwind case study are - Strategic Management Strategies, Operations management, Sales, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Intellectual Property Strategy at North Technology Group-Sailing Downwind casestudy better are - – there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, wage bills are increasing,
central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Intellectual Property Strategy at North Technology Group-Sailing Downwind
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Intellectual Property Strategy at North Technology Group-Sailing Downwind case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Copyright Patents, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Copyright Patents 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 Intellectual Property Strategy at North Technology Group-Sailing Downwind can be done for the following purposes –
1. Strategic planning using facts provided in Intellectual Property Strategy at North Technology Group-Sailing Downwind case study
2. Improving business portfolio management of Copyright Patents
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 Copyright Patents
Strengths Intellectual Property Strategy at North Technology Group-Sailing Downwind | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Copyright Patents in Intellectual Property Strategy at North Technology Group-Sailing Downwind Harvard Business Review case study are -
Analytics focus
– Copyright Patents 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 Felix Oberholzer-Gee, William W. Fisher III 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.
Superior customer experience
– The customer experience strategy of Copyright Patents in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Copyright Patents 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 Intellectual Property Strategy at North Technology Group-Sailing Downwind HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Copyright Patents is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Intellectual Property Strategy at North Technology Group-Sailing Downwind firm has clearly differentiated products in the market place. This has enabled Copyright Patents to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Copyright Patents to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Intellectual Property Strategy at North Technology Group-Sailing Downwind 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.
Ability to lead change in Strategy & Execution field
– Copyright Patents 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 Copyright Patents in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Copyright Patents 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.
Diverse revenue streams
– Copyright Patents is present in almost all the verticals within the industry. This has provided firm in Intellectual Property Strategy at North Technology Group-Sailing Downwind 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.
Training and development
– Copyright Patents has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Intellectual Property Strategy at North Technology Group-Sailing Downwind 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.
Learning organization
- Copyright Patents 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 Copyright Patents is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Intellectual Property Strategy at North Technology Group-Sailing Downwind Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Copyright Patents has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Copyright Patents 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.
Weaknesses Intellectual Property Strategy at North Technology Group-Sailing Downwind | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Intellectual Property Strategy at North Technology Group-Sailing Downwind are -
Workers concerns about automation
– As automation is fast increasing in the segment, Copyright Patents 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Copyright Patents is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Intellectual Property Strategy at North Technology Group-Sailing Downwind can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Copyright Patents has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Intellectual Property Strategy at North Technology Group-Sailing Downwind 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 Copyright Patents has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Intellectual Property Strategy at North Technology Group-Sailing Downwind HBR case study mentions - Copyright Patents 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 Intellectual Property Strategy at North Technology Group-Sailing Downwind, is just above the industry average. Copyright Patents 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 Copyright Patents is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Copyright Patents needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Copyright Patents to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Copyright Patents products
– To increase the profitability and margins on the products, Copyright Patents 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, Felix Oberholzer-Gee, William W. Fisher III suggests that, Copyright Patents 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.
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 Copyright Patents supply chain. Even after few cautionary changes mentioned in the HBR case study - Intellectual Property Strategy at North Technology Group-Sailing Downwind, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Copyright Patents vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Copyright Patents 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.
Opportunities Intellectual Property Strategy at North Technology Group-Sailing Downwind | 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 Intellectual Property Strategy at North Technology Group-Sailing Downwind are -
Building a culture of innovation
– managers at Copyright Patents 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.
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 Copyright Patents 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.
Learning at scale
– Online learning technologies has now opened space for Copyright Patents 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 Copyright Patents 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.
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. Copyright Patents can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Copyright Patents is facing challenges because of the dominance of functional experts in the organization. Intellectual Property Strategy at North Technology Group-Sailing Downwind 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.
Loyalty marketing
– Copyright Patents has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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 Copyright Patents in the consumer business. Now Copyright Patents 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 Copyright Patents can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Copyright Patents 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
– Copyright Patents can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Intellectual Property Strategy at North Technology Group-Sailing Downwind 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Copyright Patents can use these opportunities to build new business models that can help the communities that Copyright Patents operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Copyright Patents 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, Intellectual Property Strategy at North Technology Group-Sailing Downwind, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Intellectual Property Strategy at North Technology Group-Sailing Downwind External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Intellectual Property Strategy at North Technology Group-Sailing Downwind are -
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 Copyright Patents in the Strategy & Execution sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Copyright Patents 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.
High dependence on third party suppliers
– Copyright Patents 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.
Environmental challenges
– Copyright Patents 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. Copyright Patents can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Copyright Patents.
Increasing wage structure of Copyright Patents
– 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 Copyright Patents.
Consumer confidence and its impact on Copyright Patents 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 Intellectual Property Strategy at North Technology Group-Sailing Downwind, Copyright Patents 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 .
Shortening product life cycle
– it is one of the major threat that Copyright Patents is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Copyright Patents 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Copyright Patents 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 Intellectual Property Strategy at North Technology Group-Sailing Downwind .
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. Copyright Patents 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.
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 Copyright Patents business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Intellectual Property Strategy at North Technology Group-Sailing Downwind 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 Intellectual Property Strategy at North Technology Group-Sailing Downwind 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 Intellectual Property Strategy at North Technology Group-Sailing Downwind 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 Intellectual Property Strategy at North Technology Group-Sailing Downwind 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 Intellectual Property Strategy at North Technology Group-Sailing Downwind 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 Copyright Patents needs to make to build a sustainable competitive advantage.