Swot Analysis of "Time Warner vs. The Walt Disney Co. (B): Reaching Agreement" written by Michael D. Watkins, Cate Reavis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Walt Warner facing as an external strategic factors. Some of the topics covered in Time Warner vs. The Walt Disney Co. (B): Reaching Agreement case study are - Strategic Management Strategies, Decision making, Internet, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Time Warner vs. The Walt Disney Co. (B): Reaching Agreement casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, there is backlash against globalization,
increasing commodity prices, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Time Warner vs. The Walt Disney Co. (B): Reaching Agreement
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Time Warner vs. The Walt Disney Co. (B): Reaching Agreement case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Walt Warner, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Walt Warner 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 Time Warner vs. The Walt Disney Co. (B): Reaching Agreement can be done for the following purposes –
1. Strategic planning using facts provided in Time Warner vs. The Walt Disney Co. (B): Reaching Agreement case study
2. Improving business portfolio management of Walt Warner
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 Walt Warner
Strengths Time Warner vs. The Walt Disney Co. (B): Reaching Agreement | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Walt Warner in Time Warner vs. The Walt Disney Co. (B): Reaching Agreement Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Walt Warner in the sector have low bargaining power. Time Warner vs. The Walt Disney Co. (B): Reaching Agreement has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Walt Warner to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Walt Warner is one of the most innovative firm in sector. Manager in Time Warner vs. The Walt Disney Co. (B): Reaching Agreement Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Walt Warner has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Time Warner vs. The Walt Disney Co. (B): Reaching Agreement 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.
Ability to recruit top talent
– Walt Warner is one of the leading recruiters in the industry. Managers in the Time Warner vs. The Walt Disney Co. (B): Reaching Agreement are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Walt Warner
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Walt Warner does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Walt Warner 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 Michael D. Watkins, Cate Reavis 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 lead change in Strategy & Execution field
– Walt Warner 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 Walt Warner in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Walt Warner 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 Time Warner vs. The Walt Disney Co. (B): Reaching Agreement HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Walt Warner has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Walt Warner to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Walt Warner digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Walt Warner 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.
High switching costs
– The high switching costs that Walt Warner 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.
Successful track record of launching new products
– Walt Warner has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Walt Warner 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 Time Warner vs. The Walt Disney Co. (B): Reaching Agreement | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Time Warner vs. The Walt Disney Co. (B): Reaching Agreement are -
High bargaining power of channel partners
– Because of the regulatory requirements, Michael D. Watkins, Cate Reavis suggests that, Walt Warner 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Walt Warner 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.
Products dominated business model
– Even though Walt Warner 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 - Time Warner vs. The Walt Disney Co. (B): Reaching Agreement should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Time Warner vs. The Walt Disney Co. (B): Reaching Agreement, is just above the industry average. Walt Warner 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 Walt Warner, firm in the HBR case study Time Warner vs. The Walt Disney Co. (B): Reaching Agreement needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Walt Warner is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Walt Warner needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Walt Warner to focus more on services rather than just following the product oriented approach.
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 Walt Warner supply chain. Even after few cautionary changes mentioned in the HBR case study - Time Warner vs. The Walt Disney Co. (B): Reaching Agreement, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Walt Warner vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Time Warner vs. The Walt Disney Co. (B): Reaching Agreement HBR case study mentions - Walt Warner 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Time Warner vs. The Walt Disney Co. (B): Reaching Agreement 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 Walt Warner 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Walt Warner is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Time Warner vs. The Walt Disney Co. (B): Reaching Agreement 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 Walt Warner products
– To increase the profitability and margins on the products, Walt Warner needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Time Warner vs. The Walt Disney Co. (B): Reaching Agreement | 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 Time Warner vs. The Walt Disney Co. (B): Reaching Agreement are -
Learning at scale
– Online learning technologies has now opened space for Walt Warner 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.
Manufacturing automation
– Walt Warner 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Walt Warner is facing challenges because of the dominance of functional experts in the organization. Time Warner vs. The Walt Disney Co. (B): Reaching Agreement 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Walt Warner can use these opportunities to build new business models that can help the communities that Walt Warner 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 Walt Warner can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Walt Warner 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.
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. Walt Warner can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Walt Warner to increase its market reach. Walt Warner 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Walt Warner 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.
Building a culture of innovation
– managers at Walt Warner 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 Walt Warner 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 Walt Warner has opened avenues for new revenue streams for the organization in the industry. This can help Walt Warner to build a more holistic ecosystem as suggested in the Time Warner vs. The Walt Disney Co. (B): Reaching Agreement case study. Walt Warner can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Walt Warner in the consumer business. Now Walt Warner can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Time Warner vs. The Walt Disney Co. (B): Reaching Agreement External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Time Warner vs. The Walt Disney Co. (B): Reaching Agreement are -
Stagnating economy with rate increase
– Walt Warner 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.
Consumer confidence and its impact on Walt Warner 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.
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 Walt Warner in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Walt Warner 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.
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 Walt Warner.
Technology acceleration in Forth Industrial Revolution
– Walt Warner has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Walt Warner 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.
Environmental challenges
– Walt Warner 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. Walt Warner 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.
Regulatory challenges
– Walt Warner 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.
Increasing wage structure of Walt Warner
– 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 Walt Warner.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Walt Warner 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Time Warner vs. The Walt Disney Co. (B): Reaching Agreement, Walt Warner 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 .
Weighted SWOT Analysis of Time Warner vs. The Walt Disney Co. (B): Reaching Agreement 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 Time Warner vs. The Walt Disney Co. (B): Reaching Agreement 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 Time Warner vs. The Walt Disney Co. (B): Reaching Agreement 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 Time Warner vs. The Walt Disney Co. (B): Reaching Agreement 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 Time Warner vs. The Walt Disney Co. (B): Reaching Agreement 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 Walt Warner needs to make to build a sustainable competitive advantage.