The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry
Peer-to-Peer networking technology and related innovations have had a major impact on the music and motion picture industries. While digital technology has improved the quality of audio and video recordings and decreased distribution costs, it has also made unauthorized duplication of copyrighted material and its transmission over the Internet easier. The media industry attributes an erosion of its sales after 1999 to the illegal copying and sharing of digital files and has taken steps to tighten copyright laws and prosecute violators. Others attribute the downturn to a lack of innovative products and futile efforts by the industry to retain a business model made obsolete by technological innovation. In the meantime, unauthorized file-sharing via Peer-to-Peer networks continues unabated and its real financial impact on the industry remains unclear. The market perceives illegal file-sharing to be a significant threat to the long-term profitability of the media industry and regards current legal initiatives to protect its intellectual capital as beneficial. This article discusses several strategies and business models that the media industry may consider to respond to the current threat and better cater to changing customer tastes.
Authors :: Sanjay Goel, Paul Miesing, Uday Chandra
Swot Analysis of "The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry" written by Sanjay Goel, Paul Miesing, Uday Chandra includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Peer Sharing facing as an external strategic factors. Some of the topics covered in The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry case study are - Strategic Management Strategies, Customers, Intellectual property, Internet, Networking and Technology & Operations.
Some of the macro environment factors that can be used to understand the The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry casestudy better are - – challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies,
talent flight as more people leaving formal jobs, wage bills are increasing, etc
Introduction to SWOT Analysis of The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Peer Sharing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Peer Sharing 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 The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry can be done for the following purposes –
1. Strategic planning using facts provided in The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry case study
2. Improving business portfolio management of Peer Sharing
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 Peer Sharing
Strengths The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Peer Sharing in The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry Harvard Business Review case study are -
Strong track record of project management
– Peer Sharing is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Peer Sharing has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Peer Sharing to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Peer Sharing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Peer Sharing has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Effective Research and Development (R&D)
– Peer Sharing 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 The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Peer Sharing in the sector have low bargaining power. The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Peer Sharing to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Peer Sharing 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 Sanjay Goel, Paul Miesing, Uday Chandra 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.
Ability to recruit top talent
– Peer Sharing is one of the leading recruiters in the industry. Managers in the The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Peer Sharing has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry 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.
Ability to lead change in Technology & Operations field
– Peer Sharing 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 Peer Sharing 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 Peer Sharing 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.
Sustainable margins compare to other players in Technology & Operations industry
– The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry firm has clearly differentiated products in the market place. This has enabled Peer Sharing to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Peer Sharing to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry 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 The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry are -
Skills based hiring
– The stress on hiring functional specialists at Peer Sharing 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Peer Sharing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Peer Sharing 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 - The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry HBR case study mentions - Peer Sharing 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 operating costs
– Compare to the competitors, firm in the HBR case study The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry 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 Peer Sharing 's lucrative customers.
High cash cycle compare to competitors
Peer Sharing 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.
Low market penetration in new markets
– Outside its home market of Peer Sharing, firm in the HBR case study The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry, 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.
Capital Spending Reduction
– Even during the low interest decade, Peer Sharing 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.
Slow decision making process
– As mentioned earlier in the report, Peer Sharing 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. Peer Sharing 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.
Interest costs
– Compare to the competition, Peer Sharing 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.
Opportunities The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry | 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 The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry are -
Buying journey improvements
– Peer Sharing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry 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.
Leveraging digital technologies
– Peer Sharing 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.
Creating value in data economy
– The success of analytics program of Peer Sharing has opened avenues for new revenue streams for the organization in the industry. This can help Peer Sharing to build a more holistic ecosystem as suggested in the The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry case study. Peer Sharing can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Peer Sharing 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.
Developing new processes and practices
– Peer Sharing 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.
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 Peer Sharing in the consumer business. Now Peer Sharing can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Peer Sharing 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, The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Peer Sharing 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.
Loyalty marketing
– Peer Sharing 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. Peer Sharing 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. Peer Sharing 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 Peer Sharing 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 Peer Sharing to hire the very best people irrespective of their geographical location.
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. Peer Sharing 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 Peer Sharing to increase its market reach. Peer Sharing 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.
Threats The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry are -
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.
Increasing wage structure of Peer Sharing
– 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 Peer Sharing.
Environmental challenges
– Peer Sharing 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. Peer Sharing can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Stagnating economy with rate increase
– Peer Sharing 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Peer Sharing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Peer Sharing.
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.
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. Peer Sharing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Peer Sharing in the Technology & Operations sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Peer Sharing 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.
Consumer confidence and its impact on Peer Sharing 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.
Technology acceleration in Forth Industrial Revolution
– Peer Sharing has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Peer Sharing 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Peer Sharing 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 The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry .
Weighted SWOT Analysis of The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry 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 The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry 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 The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry 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 The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry 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 The Impact of Illegal Peer-to-Peer File-Sharing on the Media Industry 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 Peer Sharing needs to make to build a sustainable competitive advantage.
