Qihoo 360: A Subversive Tiger in the Internet Jungle SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Qihoo 360: A Subversive Tiger in the Internet Jungle
Qihoo 360 Technology Company was a leading Internet platform company in China, the number one provider of Internet and mobile security products as measured by user base. The company entered China's fiercely competitive Internet market relatively late and adopted the "freemium" model as the basis of its business. "In the beginning," said Qihoo founder Zhou Hongyi, "Forget how to make money - focus on how to create a valuable service for every consumer." Qihoo sought to monetize through continuous product-side innovation and product-design that puts users first.
Swot Analysis of "Qihoo 360: A Subversive Tiger in the Internet Jungle" written by Harikesh Nair, Sheila Melvin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Qihoo 360 facing as an external strategic factors. Some of the topics covered in Qihoo 360: A Subversive Tiger in the Internet Jungle case study are - Strategic Management Strategies, Innovation, Internet, Marketing, Security & privacy and Technology & Operations.
Some of the macro environment factors that can be used to understand the Qihoo 360: A Subversive Tiger in the Internet Jungle casestudy better are - – increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, technology disruption, central banks are concerned over increasing inflation, there is backlash against globalization, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies,
digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, etc
Introduction to SWOT Analysis of Qihoo 360: A Subversive Tiger in the Internet Jungle
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Qihoo 360: A Subversive Tiger in the Internet Jungle case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Qihoo 360, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Qihoo 360 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 Qihoo 360: A Subversive Tiger in the Internet Jungle can be done for the following purposes –
1. Strategic planning using facts provided in Qihoo 360: A Subversive Tiger in the Internet Jungle case study
2. Improving business portfolio management of Qihoo 360
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 Qihoo 360
Strengths Qihoo 360: A Subversive Tiger in the Internet Jungle | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Qihoo 360 in Qihoo 360: A Subversive Tiger in the Internet Jungle Harvard Business Review case study are -
Learning organization
- Qihoo 360 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 Qihoo 360 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Qihoo 360: A Subversive Tiger in the Internet Jungle Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Qihoo 360 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 Qihoo 360: A Subversive Tiger in the Internet Jungle HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Qihoo 360 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 Qihoo 360: A Subversive Tiger in the Internet Jungle - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Qihoo 360 in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Technology & Operations field
– Qihoo 360 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 Qihoo 360 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Qihoo 360 is present in almost all the verticals within the industry. This has provided firm in Qihoo 360: A Subversive Tiger in the Internet Jungle 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.
Sustainable margins compare to other players in Technology & Operations industry
– Qihoo 360: A Subversive Tiger in the Internet Jungle firm has clearly differentiated products in the market place. This has enabled Qihoo 360 to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Qihoo 360 to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Qihoo 360 is one of the leading recruiters in the industry. Managers in the Qihoo 360: A Subversive Tiger in the Internet Jungle are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Qihoo 360 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Qihoo 360: A Subversive Tiger in the Internet Jungle 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.
Operational resilience
– The operational resilience strategy in the Qihoo 360: A Subversive Tiger in the Internet Jungle 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.
Successful track record of launching new products
– Qihoo 360 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Qihoo 360 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.
Cross disciplinary teams
– Horizontal connected teams at the Qihoo 360 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.
Weaknesses Qihoo 360: A Subversive Tiger in the Internet Jungle | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Qihoo 360: A Subversive Tiger in the Internet Jungle are -
Aligning sales with marketing
– It come across in the case study Qihoo 360: A Subversive Tiger in the Internet Jungle 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 Qihoo 360: A Subversive Tiger in the Internet Jungle can leverage the sales team experience to cultivate customer relationships as Qihoo 360 is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Harikesh Nair, Sheila Melvin suggests that, Qihoo 360 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 cash cycle compare to competitors
Qihoo 360 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Qihoo 360: A Subversive Tiger in the Internet Jungle, in the dynamic environment Qihoo 360 has struggled to respond to the nimble upstart competition. Qihoo 360 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Qihoo 360: A Subversive Tiger in the Internet Jungle, 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, Qihoo 360 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Qihoo 360: A Subversive Tiger in the Internet Jungle can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Qihoo 360: A Subversive Tiger in the Internet Jungle, it seems that the employees of Qihoo 360 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Qihoo 360: A Subversive Tiger in the Internet Jungle 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 Qihoo 360 's lucrative customers.
Lack of clear differentiation of Qihoo 360 products
– To increase the profitability and margins on the products, Qihoo 360 needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Qihoo 360 supply chain. Even after few cautionary changes mentioned in the HBR case study - Qihoo 360: A Subversive Tiger in the Internet Jungle, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Qihoo 360 vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Qihoo 360 is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Qihoo 360 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Qihoo 360 to focus more on services rather than just following the product oriented approach.
Opportunities Qihoo 360: A Subversive Tiger in the Internet Jungle | 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 Qihoo 360: A Subversive Tiger in the Internet Jungle are -
Learning at scale
– Online learning technologies has now opened space for Qihoo 360 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.
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 Qihoo 360 in the consumer business. Now Qihoo 360 can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Qihoo 360 has opened avenues for new revenue streams for the organization in the industry. This can help Qihoo 360 to build a more holistic ecosystem as suggested in the Qihoo 360: A Subversive Tiger in the Internet Jungle case study. Qihoo 360 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Qihoo 360 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Qihoo 360 can use these opportunities to build new business models that can help the communities that Qihoo 360 operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Buying journey improvements
– Qihoo 360 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Qihoo 360: A Subversive Tiger in the Internet Jungle 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.
Loyalty marketing
– Qihoo 360 has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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 Qihoo 360 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Qihoo 360 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.
Building a culture of innovation
– managers at Qihoo 360 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.
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. Qihoo 360 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Qihoo 360 to increase its market reach. Qihoo 360 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Qihoo 360 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, Qihoo 360: A Subversive Tiger in the Internet Jungle, 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 Qihoo 360: A Subversive Tiger in the Internet Jungle External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Qihoo 360: A Subversive Tiger in the Internet Jungle are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Qihoo 360: A Subversive Tiger in the Internet Jungle, Qihoo 360 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Qihoo 360 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 Qihoo 360: A Subversive Tiger in the Internet Jungle .
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. Qihoo 360 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. Qihoo 360 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Qihoo 360 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
– Qihoo 360 has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Qihoo 360 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.
Regulatory challenges
– Qihoo 360 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 Qihoo 360 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.
Environmental challenges
– Qihoo 360 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. Qihoo 360 can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Shortening product life cycle
– it is one of the major threat that Qihoo 360 is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Qihoo 360 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.
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 Qihoo 360 business can come under increasing regulations regarding data privacy, data security, etc.
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.
Weighted SWOT Analysis of Qihoo 360: A Subversive Tiger in the Internet Jungle 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 Qihoo 360: A Subversive Tiger in the Internet Jungle 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 Qihoo 360: A Subversive Tiger in the Internet Jungle 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 Qihoo 360: A Subversive Tiger in the Internet Jungle 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 Qihoo 360: A Subversive Tiger in the Internet Jungle 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 Qihoo 360 needs to make to build a sustainable competitive advantage.
