Carrot or Stick? Getting Paid for Innovation at Tessera Technologies SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Carrot or Stick? Getting Paid for Innovation at Tessera Technologies
To maximize their effectiveness, color cases should be printed in color.Tessera Technologies has been very successful developing technologies for the semiconductor and mobile device industry, and then licensing them broadly to manufacturers. In addition to licensing patents, it also supplies know-how to help manufacturers move into high volume production. But the changing environment for patent enforcement, in particular the use of injunctions post eBay v. MercExchange, has brought new challenges to the company's licensing model. "Patent holdouts," companies who chose to litigate rather than license, created pressure from existing licensees. Further, as the company advanced one of its newest technology developments, a cooling technology for portable devices, it had to contend with markets where there were not strong property rights regimes. Would the company be able to get paid for its innovations, or was its model doomed?
Swot Analysis of "Carrot or Stick? Getting Paid for Innovation at Tessera Technologies" written by Willy Shih includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Licensing Technologies facing as an external strategic factors. Some of the topics covered in Carrot or Stick? Getting Paid for Innovation at Tessera Technologies case study are - Strategic Management Strategies, Intellectual property, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the Carrot or Stick? Getting Paid for Innovation at Tessera Technologies casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs,
cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Carrot or Stick? Getting Paid for Innovation at Tessera Technologies
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Carrot or Stick? Getting Paid for Innovation at Tessera Technologies case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Licensing Technologies, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Licensing Technologies 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 Carrot or Stick? Getting Paid for Innovation at Tessera Technologies can be done for the following purposes –
1. Strategic planning using facts provided in Carrot or Stick? Getting Paid for Innovation at Tessera Technologies case study
2. Improving business portfolio management of Licensing Technologies
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 Licensing Technologies
Strengths Carrot or Stick? Getting Paid for Innovation at Tessera Technologies | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Licensing Technologies in Carrot or Stick? Getting Paid for Innovation at Tessera Technologies Harvard Business Review case study are -
Training and development
– Licensing Technologies has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Carrot or Stick? Getting Paid for Innovation at Tessera Technologies 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.
Analytics focus
– Licensing Technologies 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 Willy Shih 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
– Licensing Technologies is one of the leading recruiters in the industry. Managers in the Carrot or Stick? Getting Paid for Innovation at Tessera Technologies are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Licensing Technologies 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 Licensing Technologies is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Carrot or Stick? Getting Paid for Innovation at Tessera Technologies Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Licensing Technologies is present in almost all the verticals within the industry. This has provided firm in Carrot or Stick? Getting Paid for Innovation at Tessera Technologies 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.
Operational resilience
– The operational resilience strategy in the Carrot or Stick? Getting Paid for Innovation at Tessera Technologies 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.
Strong track record of project management
– Licensing Technologies is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Licensing Technologies digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Licensing Technologies 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.
Low bargaining power of suppliers
– Suppliers of Licensing Technologies in the sector have low bargaining power. Carrot or Stick? Getting Paid for Innovation at Tessera Technologies has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Licensing Technologies to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Licensing Technologies has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Licensing Technologies 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.
Organizational Resilience of Licensing Technologies
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Licensing Technologies does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Licensing Technologies has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Carrot or Stick? Getting Paid for Innovation at Tessera Technologies HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Carrot or Stick? Getting Paid for Innovation at Tessera Technologies | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Carrot or Stick? Getting Paid for Innovation at Tessera Technologies are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Carrot or Stick? Getting Paid for Innovation at Tessera Technologies, in the dynamic environment Licensing Technologies has struggled to respond to the nimble upstart competition. Licensing Technologies has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Licensing Technologies 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.
Need for greater diversity
– Licensing Technologies 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.
Products dominated business model
– Even though Licensing Technologies 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 - Carrot or Stick? Getting Paid for Innovation at Tessera Technologies should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Licensing Technologies is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Carrot or Stick? Getting Paid for Innovation at Tessera Technologies can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Licensing Technologies supply chain. Even after few cautionary changes mentioned in the HBR case study - Carrot or Stick? Getting Paid for Innovation at Tessera Technologies, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Licensing Technologies vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Licensing Technologies 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. Licensing Technologies 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 bargaining power of channel partners
– Because of the regulatory requirements, Willy Shih suggests that, Licensing Technologies 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Carrot or Stick? Getting Paid for Innovation at Tessera Technologies 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 Licensing Technologies has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Licensing Technologies 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.
Capital Spending Reduction
– Even during the low interest decade, Licensing Technologies has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Opportunities Carrot or Stick? Getting Paid for Innovation at Tessera Technologies | 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 Carrot or Stick? Getting Paid for Innovation at Tessera Technologies are -
Building a culture of innovation
– managers at Licensing Technologies 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Licensing Technologies can use these opportunities to build new business models that can help the communities that Licensing Technologies operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Manufacturing automation
– Licensing Technologies 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Licensing Technologies is facing challenges because of the dominance of functional experts in the organization. Carrot or Stick? Getting Paid for Innovation at Tessera Technologies 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Licensing Technologies 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.
Creating value in data economy
– The success of analytics program of Licensing Technologies has opened avenues for new revenue streams for the organization in the industry. This can help Licensing Technologies to build a more holistic ecosystem as suggested in the Carrot or Stick? Getting Paid for Innovation at Tessera Technologies case study. Licensing Technologies can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Licensing Technologies 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 Licensing Technologies to increase its market reach. Licensing Technologies 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.
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 Licensing Technologies in the consumer business. Now Licensing Technologies can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Licensing Technologies 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.
Using analytics as competitive advantage
– Licensing Technologies 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 Carrot or Stick? Getting Paid for Innovation at Tessera Technologies - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Licensing Technologies to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Licensing Technologies 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Licensing Technologies 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.
Threats Carrot or Stick? Getting Paid for Innovation at Tessera Technologies External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Carrot or Stick? Getting Paid for Innovation at Tessera Technologies are -
Consumer confidence and its impact on Licensing Technologies 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Carrot or Stick? Getting Paid for Innovation at Tessera Technologies, Licensing Technologies 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 .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High dependence on third party suppliers
– Licensing Technologies 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.
Shortening product life cycle
– it is one of the major threat that Licensing Technologies is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Licensing Technologies needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Licensing Technologies 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.
Environmental challenges
– Licensing Technologies 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. Licensing Technologies can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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. Licensing Technologies can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Licensing Technologies
– 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 Licensing Technologies.
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 Licensing Technologies.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Licensing Technologies with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Licensing Technologies 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.
Weighted SWOT Analysis of Carrot or Stick? Getting Paid for Innovation at Tessera Technologies 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 Carrot or Stick? Getting Paid for Innovation at Tessera Technologies 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 Carrot or Stick? Getting Paid for Innovation at Tessera Technologies 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 Carrot or Stick? Getting Paid for Innovation at Tessera Technologies 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 Carrot or Stick? Getting Paid for Innovation at Tessera Technologies 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 Licensing Technologies needs to make to build a sustainable competitive advantage.
