Regulation and the Internet: Public Choice Insights for Business Organizations SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Regulation and the Internet: Public Choice Insights for Business Organizations
Business regulation is greatly shaped by a theory from economics and political science called "public choice." Public choice argues that regulation is sought by existing business organizations as a means to create barriers to entry for new competitors--something incumbent firms cannot do alone in the competitive environment. The Internet introduces different, and more complex, relationships between business and regulatory institutions as the territorial jurisdiction of traditional governmental agencies erodes and control over technology standards by business and nongovernmental organizations arises. With some important caveats, public choice theory offers important insights into exchange relationships between regulatory institutions and firms operating on the Internet. Examines a specific application of public choice to the case of the Linux Standards Base, an Internet-based governing board for the open-source operating system. The Linux Standards Base provides an example of regulation where the regulatory institution is a nongovernmental entity.
Authors :: Robert L. Simons, Emerson Tiller, Sirkka Jarvenpaa
Swot Analysis of "Regulation and the Internet: Public Choice Insights for Business Organizations" written by Robert L. Simons, Emerson Tiller, Sirkka Jarvenpaa includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Choice Regulation facing as an external strategic factors. Some of the topics covered in Regulation and the Internet: Public Choice Insights for Business Organizations case study are - Strategic Management Strategies, Government, Internet and Technology & Operations.
Some of the macro environment factors that can be used to understand the Regulation and the Internet: Public Choice Insights for Business Organizations casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, increasing transportation and logistics costs, wage bills are increasing, challanges to central banks by blockchain based private currencies,
technology disruption, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Regulation and the Internet: Public Choice Insights for Business Organizations
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Regulation and the Internet: Public Choice Insights for Business Organizations case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Choice Regulation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Choice Regulation 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 Regulation and the Internet: Public Choice Insights for Business Organizations can be done for the following purposes –
1. Strategic planning using facts provided in Regulation and the Internet: Public Choice Insights for Business Organizations case study
2. Improving business portfolio management of Choice Regulation
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 Choice Regulation
Strengths Regulation and the Internet: Public Choice Insights for Business Organizations | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Choice Regulation in Regulation and the Internet: Public Choice Insights for Business Organizations Harvard Business Review case study are -
Diverse revenue streams
– Choice Regulation is present in almost all the verticals within the industry. This has provided firm in Regulation and the Internet: Public Choice Insights for Business Organizations 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.
Cross disciplinary teams
– Horizontal connected teams at the Choice Regulation 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.
Effective Research and Development (R&D)
– Choice Regulation 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 Regulation and the Internet: Public Choice Insights for Business Organizations - 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
– Choice Regulation 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 Choice Regulation in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Choice Regulation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Choice Regulation 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.
Ability to recruit top talent
– Choice Regulation is one of the leading recruiters in the industry. Managers in the Regulation and the Internet: Public Choice Insights for Business Organizations are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Choice Regulation 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.
Sustainable margins compare to other players in Technology & Operations industry
– Regulation and the Internet: Public Choice Insights for Business Organizations firm has clearly differentiated products in the market place. This has enabled Choice Regulation to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Choice Regulation to invest into research and development (R&D) and innovation.
High brand equity
– Choice Regulation has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Choice Regulation to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Choice Regulation has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Regulation and the Internet: Public Choice Insights for Business Organizations 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 Regulation and the Internet: Public Choice Insights for Business Organizations 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.
Organizational Resilience of Choice Regulation
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Choice Regulation does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Regulation and the Internet: Public Choice Insights for Business Organizations | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Regulation and the Internet: Public Choice Insights for Business Organizations are -
Lack of clear differentiation of Choice Regulation products
– To increase the profitability and margins on the products, Choice Regulation needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Choice Regulation 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.
Aligning sales with marketing
– It come across in the case study Regulation and the Internet: Public Choice Insights for Business Organizations 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 Regulation and the Internet: Public Choice Insights for Business Organizations can leverage the sales team experience to cultivate customer relationships as Choice Regulation is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Regulation and the Internet: Public Choice Insights for Business Organizations 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 Choice Regulation 's lucrative customers.
Slow to strategic competitive environment developments
– As Regulation and the Internet: Public Choice Insights for Business Organizations HBR case study mentions - Choice Regulation 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Regulation and the Internet: Public Choice Insights for Business Organizations, in the dynamic environment Choice Regulation has struggled to respond to the nimble upstart competition. Choice Regulation has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Choice Regulation is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Regulation and the Internet: Public Choice Insights for Business Organizations can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Choice Regulation 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.
Products dominated business model
– Even though Choice Regulation 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 - Regulation and the Internet: Public Choice Insights for Business Organizations should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Choice Regulation, firm in the HBR case study Regulation and the Internet: Public Choice Insights for Business Organizations needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Choice Regulation 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.
Opportunities Regulation and the Internet: Public Choice Insights for Business Organizations | 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 Regulation and the Internet: Public Choice Insights for Business Organizations are -
Creating value in data economy
– The success of analytics program of Choice Regulation has opened avenues for new revenue streams for the organization in the industry. This can help Choice Regulation to build a more holistic ecosystem as suggested in the Regulation and the Internet: Public Choice Insights for Business Organizations case study. Choice Regulation can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Choice Regulation 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.
Learning at scale
– Online learning technologies has now opened space for Choice Regulation 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.
Building a culture of innovation
– managers at Choice Regulation 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.
Using analytics as competitive advantage
– Choice Regulation 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 Regulation and the Internet: Public Choice Insights for Business Organizations - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Choice Regulation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Choice Regulation can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Choice Regulation can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Choice Regulation to increase its market reach. Choice Regulation 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.
Developing new processes and practices
– Choice Regulation 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Choice Regulation 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, Regulation and the Internet: Public Choice Insights for Business Organizations, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Choice Regulation 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. Choice Regulation 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Choice Regulation 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 Choice Regulation to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Choice Regulation can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Regulation and the Internet: Public Choice Insights for Business Organizations 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.
Threats Regulation and the Internet: Public Choice Insights for Business Organizations External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Regulation and the Internet: Public Choice Insights for Business Organizations are -
Regulatory challenges
– Choice Regulation 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.
Technology acceleration in Forth Industrial Revolution
– Choice Regulation has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Choice Regulation 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.
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.
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. Choice Regulation needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 Choice Regulation.
Consumer confidence and its impact on Choice Regulation 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.
Shortening product life cycle
– it is one of the major threat that Choice Regulation is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Regulation and the Internet: Public Choice Insights for Business Organizations, Choice Regulation 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 .
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 Choice Regulation business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Choice Regulation 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High dependence on third party suppliers
– Choice Regulation 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 Choice Regulation 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 Regulation and the Internet: Public Choice Insights for Business Organizations 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 Regulation and the Internet: Public Choice Insights for Business Organizations 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 Regulation and the Internet: Public Choice Insights for Business Organizations 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 Regulation and the Internet: Public Choice Insights for Business Organizations 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 Regulation and the Internet: Public Choice Insights for Business Organizations 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 Choice Regulation needs to make to build a sustainable competitive advantage.