Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A)
As NBA Commissioner David Stern approached the podium, silent anticipation gripped the four thousand Houston Rockets fans gathered at the Rockets Draft Party. "With the 8th pick in the 2006 NBA draft," Stern began, "the Houston Rockets select Rudy Gay from the University of Connecticut." The four thousand Rockets faithfully erupted into euphoric cheers. Rudy Gay was a highly touted college prospect who some analysts projected could have been one of the top three selections in the draft. To be able to select him in the eighth spot seemed like a steal for the Rockets and their newly hired Assistant General Manager, Daryl Morey. Moments later, the assembled crowd's jubilation turned to horror as television analysts covering the draft announced breaking news. The Rockets traded the rights to Rudy Gay along with another Rockets fan favorite, Stromile Swift, to the Memphis Grizzlies for Shane Battier. Jeers of frustration rang from the Rockets fans. How could the Rockets trade Rudy Gay and Stromile Swift for Shane Battier?
Swot Analysis of "Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A)" written by Frances X. Frei, Matthew Perlberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rockets Rudy facing as an external strategic factors. Some of the topics covered in Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) case study are - Strategic Management Strategies, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) casestudy better are - – there is backlash against globalization, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion,
wage bills are increasing, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rockets Rudy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rockets Rudy 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 Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) can be done for the following purposes –
1. Strategic planning using facts provided in Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) case study
2. Improving business portfolio management of Rockets Rudy
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 Rockets Rudy
Strengths Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rockets Rudy in Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) Harvard Business Review case study are -
Learning organization
- Rockets Rudy 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 Rockets Rudy is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Technology & Operations field
– Rockets Rudy 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 Rockets Rudy in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Rockets Rudy has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Rockets Rudy digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Rockets Rudy 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.
Sustainable margins compare to other players in Technology & Operations industry
– Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) firm has clearly differentiated products in the market place. This has enabled Rockets Rudy to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Rockets Rudy to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Rockets Rudy 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 Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) 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.
Superior customer experience
– The customer experience strategy of Rockets Rudy in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Rockets Rudy is one of the most innovative firm in sector. Manager in Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Rockets Rudy
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Rockets Rudy does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Rockets Rudy in the sector have low bargaining power. Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rockets Rudy to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Rockets Rudy 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 Frances X. Frei, Matthew Perlberg 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.
Weaknesses Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A), it seems that the employees of Rockets Rudy don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Lack of clear differentiation of Rockets Rudy products
– To increase the profitability and margins on the products, Rockets Rudy needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Rockets Rudy has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High cash cycle compare to competitors
Rockets Rudy 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.
No frontier risks strategy
– After analyzing the HBR case study Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A), 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Rockets Rudy is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Rockets Rudy is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Rockets Rudy needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Rockets Rudy to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Rockets Rudy has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Rockets Rudy 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Rockets Rudy 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, Rockets Rudy 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 Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) | 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 Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) are -
Leveraging digital technologies
– Rockets Rudy 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Rockets Rudy is facing challenges because of the dominance of functional experts in the organization. Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) 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.
Using analytics as competitive advantage
– Rockets Rudy 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 Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rockets Rudy to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Rockets Rudy can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Rockets Rudy 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.
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 Rockets Rudy 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.
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 Rockets Rudy in the consumer business. Now Rockets Rudy can target international markets with far fewer capital restrictions requirements than the existing system.
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. Rockets Rudy 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. Rockets Rudy 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.
Creating value in data economy
– The success of analytics program of Rockets Rudy has opened avenues for new revenue streams for the organization in the industry. This can help Rockets Rudy to build a more holistic ecosystem as suggested in the Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) case study. Rockets Rudy can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Rockets Rudy can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Rockets Rudy 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.
Developing new processes and practices
– Rockets Rudy 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.
Better consumer reach
– The expansion of the 5G network will help Rockets Rudy to increase its market reach. Rockets Rudy 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 Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) are -
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. Rockets Rudy can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rockets Rudy with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Rockets Rudy 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. Rockets Rudy can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
High dependence on third party suppliers
– Rockets Rudy high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing wage structure of Rockets Rudy
– 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 Rockets Rudy.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Rockets Rudy 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 Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) .
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 Rockets Rudy in the Technology & Operations sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A), Rockets Rudy 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 .
Consumer confidence and its impact on Rockets Rudy 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.
Regulatory challenges
– Rockets Rudy 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Rockets Rudy in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Stagnating economy with rate increase
– Rockets Rudy 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 Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) 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 Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) 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 Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) 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 Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) 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 Discovering Hidden Gems: The Story of Daryl Morey, Shane Battier, and the Houston Rockets (A) 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 Rockets Rudy needs to make to build a sustainable competitive advantage.
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