EIU's ViewsWire: New Wine in a New Bottle SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of EIU's ViewsWire: New Wine in a New Bottle
In seeking to adopt new technology and to establish a Web presence, the EIU discovered that one of its competitive advantages was its own intranet and its own databases--effectively its own knowledge system. In so doing, the EIU has ended up creating a new product, ViewsWire, which some within the organization speculate is in fact a new genre. Neither a wire service nor a traditional publication, if it works it will fall somewhere between a newsletter and an information service, between a publisher and a consultancy. This case focuses on the opportunities that the networking technologies underlying the Web provide and the impact on internal processes of integrating the company's intranet with its distribution platform over the Internet.
Swot Analysis of "EIU's ViewsWire: New Wine in a New Bottle" written by Ali F. Farhoomand, Peter Lovelock includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Eiu Viewswire facing as an external strategic factors. Some of the topics covered in EIU's ViewsWire: New Wine in a New Bottle case study are - Strategic Management Strategies, Internet and Technology & Operations.
Some of the macro environment factors that can be used to understand the EIU's ViewsWire: New Wine in a New Bottle casestudy better are - – central banks are concerned over increasing inflation, there is increasing trade war between United States & China, geopolitical disruptions, supply chains are disrupted by pandemic , wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google,
increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of EIU's ViewsWire: New Wine in a New Bottle
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in EIU's ViewsWire: New Wine in a New Bottle case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Eiu Viewswire, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Eiu Viewswire 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 EIU's ViewsWire: New Wine in a New Bottle can be done for the following purposes –
1. Strategic planning using facts provided in EIU's ViewsWire: New Wine in a New Bottle case study
2. Improving business portfolio management of Eiu Viewswire
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 Eiu Viewswire
Strengths EIU's ViewsWire: New Wine in a New Bottle | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Eiu Viewswire in EIU's ViewsWire: New Wine in a New Bottle Harvard Business Review case study are -
Sustainable margins compare to other players in Technology & Operations industry
– EIU's ViewsWire: New Wine in a New Bottle firm has clearly differentiated products in the market place. This has enabled Eiu Viewswire to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Eiu Viewswire to invest into research and development (R&D) and innovation.
Ability to lead change in Technology & Operations field
– Eiu Viewswire 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 Eiu Viewswire 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
– Eiu Viewswire has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Eiu Viewswire 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.
Ability to recruit top talent
– Eiu Viewswire is one of the leading recruiters in the industry. Managers in the EIU's ViewsWire: New Wine in a New Bottle are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Eiu Viewswire is present in almost all the verticals within the industry. This has provided firm in EIU's ViewsWire: New Wine in a New Bottle 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.
Effective Research and Development (R&D)
– Eiu Viewswire 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 EIU's ViewsWire: New Wine in a New Bottle - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Eiu Viewswire
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Eiu Viewswire does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Eiu Viewswire 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
– Eiu Viewswire has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Eiu Viewswire to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Eiu Viewswire 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.
Superior customer experience
– The customer experience strategy of Eiu Viewswire in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Eiu Viewswire is one of the most innovative firm in sector. Manager in EIU's ViewsWire: New Wine in a New Bottle Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses EIU's ViewsWire: New Wine in a New Bottle | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of EIU's ViewsWire: New Wine in a New Bottle are -
Products dominated business model
– Even though Eiu Viewswire 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 - EIU's ViewsWire: New Wine in a New Bottle should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As EIU's ViewsWire: New Wine in a New Bottle HBR case study mentions - Eiu Viewswire 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.
Capital Spending Reduction
– Even during the low interest decade, Eiu Viewswire 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.
Low market penetration in new markets
– Outside its home market of Eiu Viewswire, firm in the HBR case study EIU's ViewsWire: New Wine in a New Bottle needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study EIU's ViewsWire: New Wine in a New Bottle, is just above the industry average. Eiu Viewswire needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Increasing silos among functional specialists
– The organizational structure of Eiu Viewswire is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Eiu Viewswire needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Eiu Viewswire to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Eiu Viewswire 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. Eiu Viewswire 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 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 Eiu Viewswire supply chain. Even after few cautionary changes mentioned in the HBR case study - EIU's ViewsWire: New Wine in a New Bottle, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Eiu Viewswire vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Ali F. Farhoomand, Peter Lovelock suggests that, Eiu Viewswire is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Workers concerns about automation
– As automation is fast increasing in the segment, Eiu Viewswire 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.
Interest costs
– Compare to the competition, Eiu Viewswire 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 EIU's ViewsWire: New Wine in a New Bottle | 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 EIU's ViewsWire: New Wine in a New Bottle are -
Manufacturing automation
– Eiu Viewswire 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.
Using analytics as competitive advantage
– Eiu Viewswire 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 EIU's ViewsWire: New Wine in a New Bottle - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Eiu Viewswire to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Eiu Viewswire 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Eiu Viewswire can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Eiu Viewswire 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Eiu Viewswire 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.
Better consumer reach
– The expansion of the 5G network will help Eiu Viewswire to increase its market reach. Eiu Viewswire 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.
Creating value in data economy
– The success of analytics program of Eiu Viewswire has opened avenues for new revenue streams for the organization in the industry. This can help Eiu Viewswire to build a more holistic ecosystem as suggested in the EIU's ViewsWire: New Wine in a New Bottle case study. Eiu Viewswire can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Eiu Viewswire 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.
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. Eiu Viewswire can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Eiu Viewswire is facing challenges because of the dominance of functional experts in the organization. EIU's ViewsWire: New Wine in a New Bottle 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.
Developing new processes and practices
– Eiu Viewswire 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.
Buying journey improvements
– Eiu Viewswire can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. EIU's ViewsWire: New Wine in a New Bottle 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 EIU's ViewsWire: New Wine in a New Bottle External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study EIU's ViewsWire: New Wine in a New Bottle are -
Shortening product life cycle
– it is one of the major threat that Eiu Viewswire is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Eiu Viewswire 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 EIU's ViewsWire: New Wine in a New Bottle .
Consumer confidence and its impact on Eiu Viewswire 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.
Increasing wage structure of Eiu Viewswire
– 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 Eiu Viewswire.
Environmental challenges
– Eiu Viewswire 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. Eiu Viewswire can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 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. Eiu Viewswire needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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. Eiu Viewswire can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Eiu Viewswire 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study EIU's ViewsWire: New Wine in a New Bottle, Eiu Viewswire 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Eiu Viewswire with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Eiu Viewswire has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Eiu Viewswire 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.
Stagnating economy with rate increase
– Eiu Viewswire 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.
Weighted SWOT Analysis of EIU's ViewsWire: New Wine in a New Bottle 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 EIU's ViewsWire: New Wine in a New Bottle 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 EIU's ViewsWire: New Wine in a New Bottle 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 EIU's ViewsWire: New Wine in a New Bottle 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 EIU's ViewsWire: New Wine in a New Bottle 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 Eiu Viewswire needs to make to build a sustainable competitive advantage.
