Case Study Description of Atlanta Symphony Orchestra
The Atlanta Symphony Orchestra, conducted by its newly appointed music director, performed a rarely heard composition. The musical performance was, by all accounts, superb. Although most in the audience cheered the performance, a few stormed out of the concert hall. These audience members were largely reacting to the high-tech mixed media show designed by a well-known artist that accompanied the performance. This performance was one of the Atlanta Symphony Orchestra's recent occasional and innovative breaks from concert tradition. The vice-president and general manager of the Atlanta Symphony Orchestra recognized that opportunities to facilitate growth existed onstage and offstage for broadening and enriching the orchestra's services and the concert experiences of its audience.
Swot Analysis of "Atlanta Symphony Orchestra" written by Larry Menor, Jorge Colazo includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Symphony Atlanta facing as an external strategic factors. Some of the topics covered in Atlanta Symphony Orchestra case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the Atlanta Symphony Orchestra casestudy better are - – supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies,
there is backlash against globalization, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Atlanta Symphony Orchestra
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Atlanta Symphony Orchestra case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Symphony Atlanta, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Symphony Atlanta 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 Atlanta Symphony Orchestra can be done for the following purposes –
1. Strategic planning using facts provided in Atlanta Symphony Orchestra case study
2. Improving business portfolio management of Symphony Atlanta
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 Symphony Atlanta
Strengths Atlanta Symphony Orchestra | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Symphony Atlanta in Atlanta Symphony Orchestra Harvard Business Review case study are -
Analytics focus
– Symphony Atlanta 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 Larry Menor, Jorge Colazo 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 Symphony Atlanta 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.
High brand equity
– Symphony Atlanta has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Symphony Atlanta to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Symphony Atlanta is one of the most innovative firm in sector. Manager in Atlanta Symphony Orchestra Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Symphony Atlanta 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 Symphony Atlanta is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Atlanta Symphony Orchestra Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Technology & Operations field
– Symphony Atlanta 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 Symphony Atlanta in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Symphony Atlanta has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Symphony Atlanta 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Symphony Atlanta digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Symphony Atlanta 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.
Low bargaining power of suppliers
– Suppliers of Symphony Atlanta in the sector have low bargaining power. Atlanta Symphony Orchestra has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Symphony Atlanta to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Symphony Atlanta is present in almost all the verticals within the industry. This has provided firm in Atlanta Symphony Orchestra 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 switching costs
– The high switching costs that Symphony Atlanta 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)
– Symphony Atlanta 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 Atlanta Symphony Orchestra - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Atlanta Symphony Orchestra | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Atlanta Symphony Orchestra are -
Low market penetration in new markets
– Outside its home market of Symphony Atlanta, firm in the HBR case study Atlanta Symphony Orchestra needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Atlanta Symphony Orchestra, 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.
Increasing silos among functional specialists
– The organizational structure of Symphony Atlanta is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Symphony Atlanta needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Symphony Atlanta to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Atlanta Symphony Orchestra 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 Atlanta Symphony Orchestra can leverage the sales team experience to cultivate customer relationships as Symphony Atlanta is planning to shift buying processes online.
High cash cycle compare to competitors
Symphony Atlanta 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.
Slow decision making process
– As mentioned earlier in the report, Symphony Atlanta 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. Symphony Atlanta 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 operating costs
– Compare to the competitors, firm in the HBR case study Atlanta Symphony Orchestra 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 Symphony Atlanta 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Symphony Atlanta 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.
Slow to strategic competitive environment developments
– As Atlanta Symphony Orchestra HBR case study mentions - Symphony Atlanta 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 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 Symphony Atlanta supply chain. Even after few cautionary changes mentioned in the HBR case study - Atlanta Symphony Orchestra, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Symphony Atlanta vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Atlanta Symphony Orchestra, it seems that the employees of Symphony Atlanta 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.
Opportunities Atlanta Symphony Orchestra | 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 Atlanta Symphony Orchestra are -
Loyalty marketing
– Symphony Atlanta 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.
Developing new processes and practices
– Symphony Atlanta 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Symphony Atlanta 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.
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 Symphony Atlanta 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.
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. Symphony Atlanta can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Symphony Atlanta can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Atlanta Symphony Orchestra 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.
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. Symphony Atlanta can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Symphony Atlanta 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, Symphony Atlanta can use these opportunities to build new business models that can help the communities that Symphony Atlanta operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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. Symphony Atlanta 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. Symphony Atlanta 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Symphony Atlanta is facing challenges because of the dominance of functional experts in the organization. Atlanta Symphony Orchestra case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Symphony Atlanta 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, Atlanta Symphony Orchestra, 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 Symphony Atlanta has opened avenues for new revenue streams for the organization in the industry. This can help Symphony Atlanta to build a more holistic ecosystem as suggested in the Atlanta Symphony Orchestra case study. Symphony Atlanta can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Atlanta Symphony Orchestra External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Atlanta Symphony Orchestra are -
Environmental challenges
– Symphony Atlanta 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. Symphony Atlanta can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Consumer confidence and its impact on Symphony Atlanta 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Symphony Atlanta 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 Atlanta Symphony Orchestra .
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. Symphony Atlanta 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.
Technology acceleration in Forth Industrial Revolution
– Symphony Atlanta has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Symphony Atlanta 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Symphony Atlanta in the Technology & Operations industry. The Technology & Operations 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.
Stagnating economy with rate increase
– Symphony Atlanta can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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 Symphony Atlanta in the Technology & Operations sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Symphony Atlanta 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 Symphony Atlanta
– 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 Symphony Atlanta.
Regulatory challenges
– Symphony Atlanta 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.
Weighted SWOT Analysis of Atlanta Symphony Orchestra 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 Atlanta Symphony Orchestra 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 Atlanta Symphony Orchestra 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 Atlanta Symphony Orchestra 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 Atlanta Symphony Orchestra 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 Symphony Atlanta needs to make to build a sustainable competitive advantage.