Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students
The second of four module notes for students taking an advanced course on competitive strategy. Presents concepts and techniques to help students understand the origins of effective strategies.
Swot Analysis of "Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students" written by Jan W. Rivkin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Module Advanced facing as an external strategic factors. Some of the topics covered in Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students casestudy better are - – supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, technology disruption, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China,
geopolitical disruptions, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Module Advanced, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Module Advanced 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 Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students can be done for the following purposes –
1. Strategic planning using facts provided in Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students case study
2. Improving business portfolio management of Module Advanced
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 Module Advanced
Strengths Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Module Advanced in Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Module Advanced 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 Module Advanced in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Module Advanced 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 Module Advanced is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Module Advanced 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.
Highly skilled collaborators
– Module Advanced 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 Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Module Advanced is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Module Advanced in the sector have low bargaining power. Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Module Advanced to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Module Advanced has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students 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.
Analytics focus
– Module Advanced 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 Jan W. Rivkin 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.
High brand equity
– Module Advanced has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Module Advanced to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Module Advanced has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Module Advanced 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.
Effective Research and Development (R&D)
– Module Advanced 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 Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students firm has clearly differentiated products in the market place. This has enabled Module Advanced to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Module Advanced to invest into research and development (R&D) and innovation.
Weaknesses Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students, it seems that the employees of Module Advanced 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students 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 Module Advanced 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students 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 Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students can leverage the sales team experience to cultivate customer relationships as Module Advanced is planning to shift buying processes online.
Interest costs
– Compare to the competition, Module Advanced 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.
Skills based hiring
– The stress on hiring functional specialists at Module Advanced has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Jan W. Rivkin suggests that, Module Advanced 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.
Increasing silos among functional specialists
– The organizational structure of Module Advanced is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Module Advanced needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Module Advanced to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Module Advanced, firm in the HBR case study Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students HBR case study mentions - Module Advanced 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 cash cycle compare to competitors
Module Advanced has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students, is just above the industry average. Module Advanced 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.
Opportunities Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students | 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 Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students are -
Buying journey improvements
– Module Advanced can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Module Advanced 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.
Better consumer reach
– The expansion of the 5G network will help Module Advanced to increase its market reach. Module Advanced 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Module Advanced 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.
Creating value in data economy
– The success of analytics program of Module Advanced has opened avenues for new revenue streams for the organization in the industry. This can help Module Advanced to build a more holistic ecosystem as suggested in the Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students case study. Module Advanced 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 Module Advanced can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Module Advanced can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, 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. Module Advanced 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. Module Advanced 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.
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. Module Advanced can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Module Advanced 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 Module Advanced to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Module Advanced 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.
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 Module Advanced 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.
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 Module Advanced in the consumer business. Now Module Advanced can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students are -
Regulatory challenges
– Module Advanced 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.
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.
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 Module Advanced.
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 Module Advanced business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Module Advanced has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Module Advanced 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
– Module Advanced 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Module Advanced with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Module Advanced
– 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 Module Advanced.
Stagnating economy with rate increase
– Module Advanced 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 Module Advanced is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Module Advanced can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Module Advanced in the Strategy & Execution sector and impact the bottomline of the organization.
Consumer confidence and its impact on Module Advanced 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.
Weighted SWOT Analysis of Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students 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 Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students 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 Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students 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 Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students 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 Where Do Successful Strategies Come from? Advanced Competitive Strategy, Module Note for Students 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 Module Advanced needs to make to build a sustainable competitive advantage.
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