SKOLAR: Launching a University Technology Spinoff Company SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of SKOLAR: Launching a University Technology Spinoff Company
SKOLAR is the first company formally spun out of Stanford University. The company is searching for the right business model to commercialize its Internet-based medical information offering.
Authors :: Henry W. Chesbrough, Charles A. Holloway, Nicole Tempest
Swot Analysis of "SKOLAR: Launching a University Technology Spinoff Company" written by Henry W. Chesbrough, Charles A. Holloway, Nicole Tempest includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Skolar Spinoff facing as an external strategic factors. Some of the topics covered in SKOLAR: Launching a University Technology Spinoff Company case study are - Strategic Management Strategies, Innovation, Internet, IT, Marketing, Social enterprise and Technology & Operations.
Some of the macro environment factors that can be used to understand the SKOLAR: Launching a University Technology Spinoff Company casestudy better are - – central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, cloud computing is disrupting traditional business models,
banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of SKOLAR: Launching a University Technology Spinoff Company
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in SKOLAR: Launching a University Technology Spinoff Company case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Skolar Spinoff, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Skolar Spinoff 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 SKOLAR: Launching a University Technology Spinoff Company can be done for the following purposes –
1. Strategic planning using facts provided in SKOLAR: Launching a University Technology Spinoff Company case study
2. Improving business portfolio management of Skolar Spinoff
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Skolar Spinoff
Strengths SKOLAR: Launching a University Technology Spinoff Company | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Skolar Spinoff in SKOLAR: Launching a University Technology Spinoff Company Harvard Business Review case study are -
Organizational Resilience of Skolar Spinoff
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Skolar Spinoff does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Skolar Spinoff 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 Henry W. Chesbrough, Charles A. Holloway, Nicole Tempest 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.
Cross disciplinary teams
– Horizontal connected teams at the Skolar Spinoff 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Skolar Spinoff digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Skolar Spinoff 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.
Learning organization
- Skolar Spinoff 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 Skolar Spinoff is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in SKOLAR: Launching a University Technology Spinoff Company Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Skolar Spinoff in the sector have low bargaining power. SKOLAR: Launching a University Technology Spinoff Company has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Skolar Spinoff to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Skolar Spinoff is present in almost all the verticals within the industry. This has provided firm in SKOLAR: Launching a University Technology Spinoff Company 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.
Superior customer experience
– The customer experience strategy of Skolar Spinoff in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Skolar Spinoff has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Skolar Spinoff 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.
High brand equity
– Skolar Spinoff has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Skolar Spinoff to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Skolar Spinoff has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in SKOLAR: Launching a University Technology Spinoff Company 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.
Operational resilience
– The operational resilience strategy in the SKOLAR: Launching a University Technology Spinoff Company 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.
Weaknesses SKOLAR: Launching a University Technology Spinoff Company | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SKOLAR: Launching a University Technology Spinoff Company are -
Increasing silos among functional specialists
– The organizational structure of Skolar Spinoff is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Skolar Spinoff needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Skolar Spinoff to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study SKOLAR: Launching a University Technology Spinoff Company, it seems that the employees of Skolar Spinoff 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.
Slow decision making process
– As mentioned earlier in the report, Skolar Spinoff 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. Skolar Spinoff 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 cash cycle compare to competitors
Skolar Spinoff 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.
Lack of clear differentiation of Skolar Spinoff products
– To increase the profitability and margins on the products, Skolar Spinoff needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Skolar Spinoff, firm in the HBR case study SKOLAR: Launching a University Technology Spinoff Company needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study SKOLAR: Launching a University Technology Spinoff Company 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 Skolar Spinoff 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Skolar Spinoff is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study SKOLAR: Launching a University Technology Spinoff Company can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Skolar Spinoff 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.
Interest costs
– Compare to the competition, Skolar Spinoff has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study SKOLAR: Launching a University Technology Spinoff Company, is just above the industry average. Skolar Spinoff 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 SKOLAR: Launching a University Technology Spinoff Company | 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 SKOLAR: Launching a University Technology Spinoff Company are -
Manufacturing automation
– Skolar Spinoff can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Skolar Spinoff in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, Skolar Spinoff 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 Skolar Spinoff has opened avenues for new revenue streams for the organization in the industry. This can help Skolar Spinoff to build a more holistic ecosystem as suggested in the SKOLAR: Launching a University Technology Spinoff Company case study. Skolar Spinoff can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Skolar Spinoff 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 Technology & Operations segment.
Leveraging digital technologies
– Skolar Spinoff 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.
Developing new processes and practices
– Skolar Spinoff can develop new processes and procedures in Technology & Operations 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Skolar Spinoff can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Skolar Spinoff can use these opportunities to build new business models that can help the communities that Skolar Spinoff operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Skolar Spinoff can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Skolar Spinoff 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.
Loyalty marketing
– Skolar Spinoff 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Skolar Spinoff 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. Skolar Spinoff 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.
Threats SKOLAR: Launching a University Technology Spinoff Company External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study SKOLAR: Launching a University Technology Spinoff Company are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Skolar Spinoff needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Skolar Spinoff is facing in Technology & Operations 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 Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Skolar Spinoff can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Skolar Spinoff.
High dependence on third party suppliers
– Skolar Spinoff 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Skolar Spinoff 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 SKOLAR: Launching a University Technology Spinoff Company .
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Skolar Spinoff with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study SKOLAR: Launching a University Technology Spinoff Company, Skolar Spinoff may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Stagnating economy with rate increase
– Skolar Spinoff 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.
Increasing wage structure of Skolar Spinoff
– 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 Skolar Spinoff.
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 Skolar Spinoff in the Technology & Operations sector and impact the bottomline of the organization.
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 Skolar Spinoff business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of SKOLAR: Launching a University Technology Spinoff Company 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 SKOLAR: Launching a University Technology Spinoff Company 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 SKOLAR: Launching a University Technology Spinoff Company 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 SKOLAR: Launching a University Technology Spinoff Company 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 SKOLAR: Launching a University Technology Spinoff Company 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 Skolar Spinoff needs to make to build a sustainable competitive advantage.
