Swot Analysis of "DreamWorks SKG Inc.: To Distribute or Not to Distribute?" written by Juan Alcacer, David J. Collis, Mary Furey includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Distribute Skg facing as an external strategic factors. Some of the topics covered in DreamWorks SKG Inc.: To Distribute or Not to Distribute? case study are - Strategic Management Strategies, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the DreamWorks SKG Inc.: To Distribute or Not to Distribute? casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings,
increasing commodity prices, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of DreamWorks SKG Inc.: To Distribute or Not to Distribute?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in DreamWorks SKG Inc.: To Distribute or Not to Distribute? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Distribute Skg, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Distribute Skg 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 DreamWorks SKG Inc.: To Distribute or Not to Distribute? can be done for the following purposes –
1. Strategic planning using facts provided in DreamWorks SKG Inc.: To Distribute or Not to Distribute? case study
2. Improving business portfolio management of Distribute Skg
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 Distribute Skg
Strengths DreamWorks SKG Inc.: To Distribute or Not to Distribute? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Distribute Skg in DreamWorks SKG Inc.: To Distribute or Not to Distribute? Harvard Business Review case study are -
Innovation driven organization
– Distribute Skg is one of the most innovative firm in sector. Manager in DreamWorks SKG Inc.: To Distribute or Not to Distribute? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Distribute Skg 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 Juan Alcacer, David J. Collis, Mary Furey 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.
Ability to recruit top talent
– Distribute Skg is one of the leading recruiters in the industry. Managers in the DreamWorks SKG Inc.: To Distribute or Not to Distribute? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Distribute Skg has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in DreamWorks SKG Inc.: To Distribute or Not to Distribute? 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.
High brand equity
– Distribute Skg has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Distribute Skg to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Distribute Skg 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 Distribute Skg is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in DreamWorks SKG Inc.: To Distribute or Not to Distribute? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Distribute Skg 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 DreamWorks SKG Inc.: To Distribute or Not to Distribute? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Distribute Skg 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
– Distribute Skg is present in almost all the verticals within the industry. This has provided firm in DreamWorks SKG Inc.: To Distribute or Not to Distribute? 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.
Sustainable margins compare to other players in Strategy & Execution industry
– DreamWorks SKG Inc.: To Distribute or Not to Distribute? firm has clearly differentiated products in the market place. This has enabled Distribute Skg to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Distribute Skg to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Distribute Skg in the sector have low bargaining power. DreamWorks SKG Inc.: To Distribute or Not to Distribute? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Distribute Skg to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Distribute Skg 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.
Weaknesses DreamWorks SKG Inc.: To Distribute or Not to Distribute? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of DreamWorks SKG Inc.: To Distribute or Not to Distribute? are -
Low market penetration in new markets
– Outside its home market of Distribute Skg, firm in the HBR case study DreamWorks SKG Inc.: To Distribute or Not to Distribute? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Distribute Skg 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study DreamWorks SKG Inc.: To Distribute or Not to Distribute?, it seems that the employees of Distribute Skg 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study DreamWorks SKG Inc.: To Distribute or Not to Distribute?, is just above the industry average. Distribute Skg 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.
Products dominated business model
– Even though Distribute Skg 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 - DreamWorks SKG Inc.: To Distribute or Not to Distribute? should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study DreamWorks SKG Inc.: To Distribute or Not to Distribute? that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case DreamWorks SKG Inc.: To Distribute or Not to Distribute? can leverage the sales team experience to cultivate customer relationships as Distribute Skg is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Distribute Skg 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. Distribute Skg 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.
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 Distribute Skg supply chain. Even after few cautionary changes mentioned in the HBR case study - DreamWorks SKG Inc.: To Distribute or Not to Distribute?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Distribute Skg vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study DreamWorks SKG Inc.: To Distribute or Not to Distribute? 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 Distribute Skg 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Distribute Skg 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Juan Alcacer, David J. Collis, Mary Furey suggests that, Distribute Skg 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 DreamWorks SKG Inc.: To Distribute or Not to Distribute? | 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 DreamWorks SKG Inc.: To Distribute or Not to Distribute? are -
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 Distribute Skg 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.
Creating value in data economy
– The success of analytics program of Distribute Skg has opened avenues for new revenue streams for the organization in the industry. This can help Distribute Skg to build a more holistic ecosystem as suggested in the DreamWorks SKG Inc.: To Distribute or Not to Distribute? case study. Distribute Skg can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Distribute Skg can use these opportunities to build new business models that can help the communities that Distribute Skg operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Distribute Skg can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Distribute Skg can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Distribute Skg to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Distribute Skg to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Distribute Skg 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.
Using analytics as competitive advantage
– Distribute Skg 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 DreamWorks SKG Inc.: To Distribute or Not to Distribute? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Distribute Skg to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Distribute Skg 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. Distribute Skg 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Distribute Skg is facing challenges because of the dominance of functional experts in the organization. DreamWorks SKG Inc.: To Distribute or Not to Distribute? 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.
Learning at scale
– Online learning technologies has now opened space for Distribute Skg to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Better consumer reach
– The expansion of the 5G network will help Distribute Skg to increase its market reach. Distribute Skg 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.
Manufacturing automation
– Distribute Skg 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 DreamWorks SKG Inc.: To Distribute or Not to Distribute? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study DreamWorks SKG Inc.: To Distribute or Not to Distribute? are -
Technology acceleration in Forth Industrial Revolution
– Distribute Skg has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Distribute Skg 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.
High dependence on third party suppliers
– Distribute Skg 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
– Distribute Skg 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. Distribute Skg can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
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. Distribute Skg 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 Distribute Skg 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 Distribute Skg.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study DreamWorks SKG Inc.: To Distribute or Not to Distribute?, Distribute Skg may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Distribute Skg can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Distribute Skg 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.
Stagnating economy with rate increase
– Distribute Skg 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Distribute Skg 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Distribute Skg 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 DreamWorks SKG Inc.: To Distribute or Not to Distribute? 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 DreamWorks SKG Inc.: To Distribute or Not to Distribute? 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 DreamWorks SKG Inc.: To Distribute or Not to Distribute? 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 DreamWorks SKG Inc.: To Distribute or Not to Distribute? 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 DreamWorks SKG Inc.: To Distribute or Not to Distribute? 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 Distribute Skg needs to make to build a sustainable competitive advantage.
