Time Warner vs. The Walt Disney Co. (A): Pulling the Plug SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Time Warner vs. The Walt Disney Co. (A): Pulling the Plug
Describes negotiation impasse between Time Warner, Inc. and The Walt Disney Co. over the retransmission of the ABC Network over Time Warner's cable systems. More broadly, the case depicts the shifting balance of power between content creators and distributors in the broadband era.
Swot Analysis of "Time Warner vs. The Walt Disney Co. (A): Pulling the Plug" 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. (A): Pulling the Plug 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. (A): Pulling the Plug casestudy better are - – there is backlash against globalization, technology disruption, digital marketing is dominated by two big players Facebook and Google, 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, wage bills are increasing, talent flight as more people leaving formal jobs,
cloud computing is disrupting traditional business models, increasing commodity prices, etc
Introduction to SWOT Analysis of Time Warner vs. The Walt Disney Co. (A): Pulling the Plug
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. (A): Pulling the Plug 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. (A): Pulling the Plug can be done for the following purposes –
1. Strategic planning using facts provided in Time Warner vs. The Walt Disney Co. (A): Pulling the Plug 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. (A): Pulling the Plug | 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. (A): Pulling the Plug Harvard Business Review case study are -
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.
Operational resilience
– The operational resilience strategy in the Time Warner vs. The Walt Disney Co. (A): Pulling the Plug 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.
Superior customer experience
– The customer experience strategy of Walt Warner in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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. (A): Pulling the Plug are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Walt Warner 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 Time Warner vs. The Walt Disney Co. (A): Pulling the Plug - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Walt Warner is present in almost all the verticals within the industry. This has provided firm in Time Warner vs. The Walt Disney Co. (A): Pulling the Plug 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.
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.
Sustainable margins compare to other players in Strategy & Execution industry
– Time Warner vs. The Walt Disney Co. (A): Pulling the Plug firm has clearly differentiated products in the market place. This has enabled Walt Warner to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Walt Warner to invest into research and development (R&D) and innovation.
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.
Learning organization
- Walt Warner 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 Walt Warner is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Time Warner vs. The Walt Disney Co. (A): Pulling the Plug Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
Weaknesses Time Warner vs. The Walt Disney Co. (A): Pulling the Plug | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Time Warner vs. The Walt Disney Co. (A): Pulling the Plug are -
High operating costs
– Compare to the competitors, firm in the HBR case study Time Warner vs. The Walt Disney Co. (A): Pulling the Plug 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.
Interest costs
– Compare to the competition, Walt Warner 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.
Need for greater diversity
– Walt Warner 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.
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.
No frontier risks strategy
– After analyzing the HBR case study Time Warner vs. The Walt Disney Co. (A): Pulling the Plug, 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.
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. (A): Pulling the Plug can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Walt Warner 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Time Warner vs. The Walt Disney Co. (A): Pulling the Plug 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 Walt Warner has relatively successful track record of launching new products.
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. (A): Pulling the Plug, 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.
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. (A): Pulling the Plug needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Time Warner vs. The Walt Disney Co. (A): Pulling the Plug 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.
Opportunities Time Warner vs. The Walt Disney Co. (A): Pulling the Plug | 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. (A): Pulling the Plug are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Walt Warner 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.
Buying journey improvements
– Walt Warner can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Time Warner vs. The Walt Disney Co. (A): Pulling the Plug 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.
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.
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.
Using analytics as competitive advantage
– Walt Warner 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 Time Warner vs. The Walt Disney Co. (A): Pulling the Plug - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Walt Warner to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Walt Warner 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.
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. Walt Warner 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. Walt Warner 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.
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.
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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Walt Warner can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Walt Warner 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 Walt Warner to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Walt Warner 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, Time Warner vs. The Walt Disney Co. (A): Pulling the Plug, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. (A): Pulling the Plug case study. Walt Warner can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Time Warner vs. The Walt Disney Co. (A): Pulling the Plug 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. (A): Pulling the Plug are -
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.
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.
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. Walt Warner 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.
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.
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 Walt Warner business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Walt Warner is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Walt Warner with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Walt Warner 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 Time Warner vs. The Walt Disney Co. (A): Pulling the Plug .
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. (A): Pulling the Plug, 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 .
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.
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.
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.
Weighted SWOT Analysis of Time Warner vs. The Walt Disney Co. (A): Pulling the Plug 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. (A): Pulling the Plug 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. (A): Pulling the Plug 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. (A): Pulling the Plug 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. (A): Pulling the Plug 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.
