Swot Analysis of "Prodigy Services Co. (A), Supplement" written by Lynn Sharp Paine includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Prodigy Evaluations facing as an external strategic factors. Some of the topics covered in Prodigy Services Co. (A), Supplement case study are - Strategic Management Strategies, Ethics, IT, Regulation and Technology & Operations.
Some of the macro environment factors that can be used to understand the Prodigy Services Co. (A), Supplement casestudy better are - – increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, increasing energy prices, challanges to central banks by blockchain based private currencies,
cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Prodigy Services Co. (A), Supplement
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Prodigy Services Co. (A), Supplement case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Prodigy Evaluations, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Prodigy Evaluations 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 Prodigy Services Co. (A), Supplement can be done for the following purposes –
1. Strategic planning using facts provided in Prodigy Services Co. (A), Supplement case study
2. Improving business portfolio management of Prodigy Evaluations
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 Prodigy Evaluations
Strengths Prodigy Services Co. (A), Supplement | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Prodigy Evaluations in Prodigy Services Co. (A), Supplement Harvard Business Review case study are -
High switching costs
– The high switching costs that Prodigy Evaluations 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.
Operational resilience
– The operational resilience strategy in the Prodigy Services Co. (A), Supplement 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 Prodigy Evaluations
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Prodigy Evaluations does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Prodigy Evaluations has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Prodigy Evaluations 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.
Low bargaining power of suppliers
– Suppliers of Prodigy Evaluations in the sector have low bargaining power. Prodigy Services Co. (A), Supplement has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Prodigy Evaluations to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Prodigy Evaluations has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Prodigy Evaluations to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Technology & Operations field
– Prodigy Evaluations 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 Prodigy Evaluations 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 Prodigy Evaluations 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
– Prodigy Services Co. (A), Supplement firm has clearly differentiated products in the market place. This has enabled Prodigy Evaluations to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Prodigy Evaluations to invest into research and development (R&D) and innovation.
Learning organization
- Prodigy Evaluations 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 Prodigy Evaluations is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Prodigy Services Co. (A), Supplement Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Prodigy Evaluations is present in almost all the verticals within the industry. This has provided firm in Prodigy Services Co. (A), Supplement 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.
Innovation driven organization
– Prodigy Evaluations is one of the most innovative firm in sector. Manager in Prodigy Services Co. (A), Supplement Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Prodigy Services Co. (A), Supplement | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Prodigy Services Co. (A), Supplement are -
Interest costs
– Compare to the competition, Prodigy Evaluations 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 Prodigy Services Co. (A), Supplement 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 Prodigy Services Co. (A), Supplement can leverage the sales team experience to cultivate customer relationships as Prodigy Evaluations is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Prodigy Services Co. (A), Supplement 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 Prodigy Evaluations 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Prodigy Evaluations 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.
Products dominated business model
– Even though Prodigy Evaluations 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 - Prodigy Services Co. (A), Supplement 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 Prodigy Services Co. (A), Supplement, in the dynamic environment Prodigy Evaluations has struggled to respond to the nimble upstart competition. Prodigy Evaluations 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, Prodigy Evaluations is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Prodigy Services Co. (A), Supplement 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 Prodigy Evaluations 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.
Increasing silos among functional specialists
– The organizational structure of Prodigy Evaluations is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Prodigy Evaluations needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Prodigy Evaluations to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Prodigy Evaluations products
– To increase the profitability and margins on the products, Prodigy Evaluations needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Prodigy Services Co. (A), Supplement HBR case study mentions - Prodigy Evaluations 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.
Opportunities Prodigy Services Co. (A), Supplement | 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 Prodigy Services Co. (A), Supplement are -
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. Prodigy Evaluations can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Prodigy Evaluations can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Prodigy Evaluations in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, Prodigy Evaluations 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.
Using analytics as competitive advantage
– Prodigy Evaluations 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 Prodigy Services Co. (A), Supplement - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Prodigy Evaluations to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Prodigy Evaluations 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.
Developing new processes and practices
– Prodigy Evaluations 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.
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. Prodigy Evaluations 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. Prodigy Evaluations 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.
Leveraging digital technologies
– Prodigy Evaluations 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.
Buying journey improvements
– Prodigy Evaluations can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Prodigy Services Co. (A), Supplement 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.
Manufacturing automation
– Prodigy Evaluations 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.
Creating value in data economy
– The success of analytics program of Prodigy Evaluations has opened avenues for new revenue streams for the organization in the industry. This can help Prodigy Evaluations to build a more holistic ecosystem as suggested in the Prodigy Services Co. (A), Supplement case study. Prodigy Evaluations can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Prodigy Evaluations 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, Prodigy Services Co. (A), Supplement, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Prodigy Services Co. (A), Supplement External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Prodigy Services Co. (A), Supplement are -
Increasing wage structure of Prodigy Evaluations
– 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 Prodigy Evaluations.
Environmental challenges
– Prodigy Evaluations 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. Prodigy Evaluations can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Prodigy Services Co. (A), Supplement, Prodigy Evaluations 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 .
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. Prodigy Evaluations 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.
High dependence on third party suppliers
– Prodigy Evaluations 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.
Technology acceleration in Forth Industrial Revolution
– Prodigy Evaluations has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Prodigy Evaluations 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Prodigy Evaluations with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Prodigy Evaluations business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Prodigy Evaluations 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.
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. Prodigy Evaluations needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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.
Stagnating economy with rate increase
– Prodigy Evaluations 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.
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. Prodigy Evaluations can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Prodigy Services Co. (A), Supplement 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 Prodigy Services Co. (A), Supplement 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 Prodigy Services Co. (A), Supplement 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 Prodigy Services Co. (A), Supplement 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 Prodigy Services Co. (A), Supplement 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 Prodigy Evaluations needs to make to build a sustainable competitive advantage.