Daktronics (A): The Digital Signage Industry in 2010 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Daktronics (A): The Digital Signage Industry in 2010
This Industry Note examines the state of the digital signage industry in 2010. The industry came into being to meet the emerging commercial and communications need for more dynamic messaging. It is a nexus between two industries - those who manufacture the equipment and those who create the messaging content. Together, they created an industry that provides instantaneous messaging at the speed of light. In 2010, the industry was a technically complex, multi-product, multi-segment, multi-channel, highly fragmented market with few dominant firms, rapidly-evolving technologies, and relatively low entry barriers for many segments of the industry. Global opportunities exist and multi-national electronics firms are entering the market. The Note reviews the industry's external environment, the forces that are shaping the industry, its competitive landscape, the emerging industry structure, and the near-term future of the industry. Those firms that emerged as dominant competitors tended to have higher levels of vertical integration, greater financial strength, and greater breadth in their product lines; served multiple market segments; and had the design and engineering capabilities to provide high-level product customization. Increased capabilities in design, product engineering, fabrication, and technology integration led to broader and more diversified product lines and the ability to meet demanding customer requirements in multiple market segments.
Authors :: Joseph K Kavanaugh, Joshua M Warne, Carol J Cumber
Swot Analysis of "Daktronics (A): The Digital Signage Industry in 2010" written by Joseph K Kavanaugh, Joshua M Warne, Carol J Cumber includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Industry Messaging facing as an external strategic factors. Some of the topics covered in Daktronics (A): The Digital Signage Industry in 2010 case study are - Strategic Management Strategies, Marketing, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Daktronics (A): The Digital Signage Industry in 2010 casestudy better are - – increasing energy prices, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization,
increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Daktronics (A): The Digital Signage Industry in 2010
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Daktronics (A): The Digital Signage Industry in 2010 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Industry Messaging, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Industry Messaging 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 Daktronics (A): The Digital Signage Industry in 2010 can be done for the following purposes –
1. Strategic planning using facts provided in Daktronics (A): The Digital Signage Industry in 2010 case study
2. Improving business portfolio management of Industry Messaging
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 Industry Messaging
Strengths Daktronics (A): The Digital Signage Industry in 2010 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Industry Messaging in Daktronics (A): The Digital Signage Industry in 2010 Harvard Business Review case study are -
Training and development
– Industry Messaging has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Daktronics (A): The Digital Signage Industry in 2010 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.
Organizational Resilience of Industry Messaging
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Industry Messaging does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Industry Messaging is one of the leading recruiters in the industry. Managers in the Daktronics (A): The Digital Signage Industry in 2010 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Industry Messaging 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 Industry Messaging is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Daktronics (A): The Digital Signage Industry in 2010 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Industry Messaging digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Industry Messaging 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.
Strong track record of project management
– Industry Messaging 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
– Daktronics (A): The Digital Signage Industry in 2010 firm has clearly differentiated products in the market place. This has enabled Industry Messaging to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Industry Messaging to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Industry Messaging 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 Daktronics (A): The Digital Signage Industry in 2010 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Industry Messaging is present in almost all the verticals within the industry. This has provided firm in Daktronics (A): The Digital Signage Industry in 2010 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.
Analytics focus
– Industry Messaging 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 Joseph K Kavanaugh, Joshua M Warne, Carol J Cumber 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.
Innovation driven organization
– Industry Messaging is one of the most innovative firm in sector. Manager in Daktronics (A): The Digital Signage Industry in 2010 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Industry Messaging has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Industry Messaging 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 Daktronics (A): The Digital Signage Industry in 2010 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Daktronics (A): The Digital Signage Industry in 2010 are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Daktronics (A): The Digital Signage Industry in 2010, in the dynamic environment Industry Messaging has struggled to respond to the nimble upstart competition. Industry Messaging has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Industry Messaging 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Daktronics (A): The Digital Signage Industry in 2010, is just above the industry average. Industry Messaging 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.
Low market penetration in new markets
– Outside its home market of Industry Messaging, firm in the HBR case study Daktronics (A): The Digital Signage Industry in 2010 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Industry Messaging has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Capital Spending Reduction
– Even during the low interest decade, Industry Messaging 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 Industry Messaging is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Industry Messaging needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Industry Messaging to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Industry Messaging is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Daktronics (A): The Digital Signage Industry in 2010 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Industry Messaging has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Industry Messaging even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
No frontier risks strategy
– After analyzing the HBR case study Daktronics (A): The Digital Signage Industry in 2010, 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Joseph K Kavanaugh, Joshua M Warne, Carol J Cumber suggests that, Industry Messaging 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.
Opportunities Daktronics (A): The Digital Signage Industry in 2010 | 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 Daktronics (A): The Digital Signage Industry in 2010 are -
Manufacturing automation
– Industry Messaging 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Industry Messaging 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Industry Messaging can use these opportunities to build new business models that can help the communities that Industry Messaging operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Industry Messaging 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. Industry Messaging 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.
Learning at scale
– Online learning technologies has now opened space for Industry Messaging 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.
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. Industry Messaging can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Industry Messaging 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.
Creating value in data economy
– The success of analytics program of Industry Messaging has opened avenues for new revenue streams for the organization in the industry. This can help Industry Messaging to build a more holistic ecosystem as suggested in the Daktronics (A): The Digital Signage Industry in 2010 case study. Industry Messaging can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Industry Messaging can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Industry Messaging 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.
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 Industry Messaging 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
– Industry Messaging 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 Daktronics (A): The Digital Signage Industry in 2010 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Industry Messaging to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Industry Messaging can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Daktronics (A): The Digital Signage Industry in 2010 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.
Threats Daktronics (A): The Digital Signage Industry in 2010 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Daktronics (A): The Digital Signage Industry in 2010 are -
High dependence on third party suppliers
– Industry Messaging 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Daktronics (A): The Digital Signage Industry in 2010, Industry Messaging 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 .
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. Industry Messaging 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.
Consumer confidence and its impact on Industry Messaging demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing wage structure of Industry Messaging
– 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 Industry Messaging.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Industry Messaging 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 Daktronics (A): The Digital Signage Industry in 2010 .
Technology acceleration in Forth Industrial Revolution
– Industry Messaging has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Industry Messaging 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.
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. Industry Messaging can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Industry Messaging with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Industry Messaging needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Industry Messaging 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 Industry Messaging is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Industry Messaging business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Daktronics (A): The Digital Signage Industry in 2010 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 Daktronics (A): The Digital Signage Industry in 2010 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 Daktronics (A): The Digital Signage Industry in 2010 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 Daktronics (A): The Digital Signage Industry in 2010 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 Daktronics (A): The Digital Signage Industry in 2010 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 Industry Messaging needs to make to build a sustainable competitive advantage.
