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 - – talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, increasing energy prices, wage bills are increasing, supply chains are disrupted by pandemic , geopolitical disruptions,
increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, 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 -
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.
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.
Sustainable margins compare to other players in Technology & Operations industry
– SKOLAR: Launching a University Technology Spinoff Company firm has clearly differentiated products in the market place. This has enabled Skolar Spinoff to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Skolar Spinoff to invest into research and development (R&D) and innovation.
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.
Strong track record of project management
– Skolar Spinoff is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Skolar Spinoff is one of the most innovative firm in sector. Manager in SKOLAR: Launching a University Technology Spinoff Company Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Skolar Spinoff 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.
Effective Research and Development (R&D)
– Skolar Spinoff 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 SKOLAR: Launching a University Technology Spinoff Company - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Technology & Operations field
– Skolar Spinoff 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 Skolar Spinoff in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
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 -
Capital Spending Reduction
– Even during the low interest decade, Skolar Spinoff 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.
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.
Products dominated business model
– Even though Skolar Spinoff 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 - SKOLAR: Launching a University Technology Spinoff Company should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study SKOLAR: Launching a University Technology Spinoff Company, in the dynamic environment Skolar Spinoff has struggled to respond to the nimble upstart competition. Skolar Spinoff has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study SKOLAR: Launching a University Technology Spinoff Company, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Skolar Spinoff 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.
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.
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.
Aligning sales with marketing
– It come across in the case study SKOLAR: Launching a University Technology Spinoff Company 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 SKOLAR: Launching a University Technology Spinoff Company can leverage the sales team experience to cultivate customer relationships as Skolar Spinoff is planning to shift buying processes online.
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.
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 -
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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Skolar Spinoff 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, SKOLAR: Launching a University Technology Spinoff Company, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Using analytics as competitive advantage
– Skolar Spinoff 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 SKOLAR: Launching a University Technology Spinoff Company - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Skolar Spinoff to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Skolar Spinoff 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.
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 Skolar Spinoff in the consumer business. Now Skolar Spinoff can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Skolar Spinoff to increase its market reach. Skolar Spinoff 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.
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. Skolar Spinoff can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Skolar Spinoff 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 Skolar Spinoff to hire the very best people irrespective of their geographical location.
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.
Regulatory challenges
– Skolar Spinoff 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 Technology & Operations industry regulations.
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.
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.
Technology acceleration in Forth Industrial Revolution
– Skolar Spinoff has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Skolar Spinoff needs to keep up with the evolution of technology in the Technology & Operations 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.
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.
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.
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.
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.
Environmental challenges
– Skolar Spinoff 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. Skolar Spinoff can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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.
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.
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.