SPECIALISTERNE: Sense and Details SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of SPECIALISTERNE: Sense and Details

Three-quarters of Specialisterne's expert software testing staff are diagnosed with some form of Autistic Spectrum Disorder (ASD). Usually a handicap, ASD conveys talents especially suited to software testing and other highly repetitive tasks that require very high accuracy. This case describes a growing company struggling with unique challenges as it implements a "social enterprise" business model; it describes the difficulties faced by social entrepreneurs implementing for-profit business models in domains usually populated by non-profits. The case is also useful as an introduction to the business of software testing.

Authors :: Robert D. Austin, Jonathan Wareham, Javier Busquets

Topics :: Technology & Operations

Tags :: IT, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "SPECIALISTERNE: Sense and Details" written by Robert D. Austin, Jonathan Wareham, Javier Busquets includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Asd Testing facing as an external strategic factors. Some of the topics covered in SPECIALISTERNE: Sense and Details case study are - Strategic Management Strategies, IT, Social enterprise, Social responsibility and Technology & Operations.

Some of the macro environment factors that can be used to understand the SPECIALISTERNE: Sense and Details casestudy better are - – increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, wage bills are increasing, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, supply chains are disrupted by pandemic , etc

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Introduction to SWOT Analysis of SPECIALISTERNE: Sense and Details

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in SPECIALISTERNE: Sense and Details case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Asd Testing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Asd Testing 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of SPECIALISTERNE: Sense and Details can be done for the following purposes –
1. Strategic planning using facts provided in SPECIALISTERNE: Sense and Details case study
2. Improving business portfolio management of Asd Testing
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 Asd Testing

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Strengths SPECIALISTERNE: Sense and Details | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Asd Testing in SPECIALISTERNE: Sense and Details Harvard Business Review case study are -

Diverse revenue streams

– Asd Testing is present in almost all the verticals within the industry. This has provided firm in SPECIALISTERNE: Sense and Details 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.

Ability to recruit top talent

– Asd Testing is one of the leading recruiters in the industry. Managers in the SPECIALISTERNE: Sense and Details are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Analytics focus

– Asd Testing 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 Robert D. Austin, Jonathan Wareham, Javier Busquets 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.

High switching costs

– The high switching costs that Asd Testing 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.

Successful track record of launching new products

– Asd Testing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Asd Testing 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.

Sustainable margins compare to other players in Technology & Operations industry

– SPECIALISTERNE: Sense and Details firm has clearly differentiated products in the market place. This has enabled Asd Testing to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Asd Testing to invest into research and development (R&D) and innovation.

Superior customer experience

– The customer experience strategy of Asd Testing in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Operational resilience

– The operational resilience strategy in the SPECIALISTERNE: Sense and Details 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.

Highly skilled collaborators

– Asd Testing 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 SPECIALISTERNE: Sense and Details HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Innovation driven organization

– Asd Testing is one of the most innovative firm in sector. Manager in SPECIALISTERNE: Sense and Details Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Learning organization

- Asd Testing 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 Asd Testing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in SPECIALISTERNE: Sense and Details Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Digital Transformation in Technology & Operations segment

- digital transformation varies from industry to industry. For Asd Testing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Asd Testing 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.

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Weaknesses SPECIALISTERNE: Sense and Details | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of SPECIALISTERNE: Sense and Details are -

No frontier risks strategy

– After analyzing the HBR case study SPECIALISTERNE: Sense and Details, 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.

Capital Spending Reduction

– Even during the low interest decade, Asd Testing 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.

Increasing silos among functional specialists

– The organizational structure of Asd Testing is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Asd Testing needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Asd Testing to focus more on services rather than just following the product oriented approach.

Slow decision making process

– As mentioned earlier in the report, Asd Testing 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. Asd Testing 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, Robert D. Austin, Jonathan Wareham, Javier Busquets suggests that, Asd Testing 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Asd Testing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study SPECIALISTERNE: Sense and Details can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study SPECIALISTERNE: Sense and Details, is just above the industry average. Asd Testing 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.

Interest costs

– Compare to the competition, Asd Testing has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Aligning sales with marketing

– It come across in the case study SPECIALISTERNE: Sense and Details 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 SPECIALISTERNE: Sense and Details can leverage the sales team experience to cultivate customer relationships as Asd Testing is planning to shift buying processes online.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study SPECIALISTERNE: Sense and Details, in the dynamic environment Asd Testing has struggled to respond to the nimble upstart competition. Asd Testing has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study SPECIALISTERNE: Sense and Details, it seems that the employees of Asd Testing 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.

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Opportunities SPECIALISTERNE: Sense and Details | 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 SPECIALISTERNE: Sense and Details are -

Manufacturing automation

– Asd Testing 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.

Buying journey improvements

– Asd Testing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. SPECIALISTERNE: Sense and Details 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Asd Testing can use these opportunities to build new business models that can help the communities that Asd Testing operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Asd Testing in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.

Low interest rates

– Even though inflation is raising its head in most developed economies, Asd Testing 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Asd Testing is facing challenges because of the dominance of functional experts in the organization. SPECIALISTERNE: Sense and Details 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Asd Testing 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, SPECIALISTERNE: Sense and Details, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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. Asd Testing can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Learning at scale

– Online learning technologies has now opened space for Asd Testing 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.

Using analytics as competitive advantage

– Asd Testing 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 SPECIALISTERNE: Sense and Details - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Asd Testing to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Asd Testing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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 Asd Testing 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.

Leveraging digital technologies

– Asd Testing 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.

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Threats SPECIALISTERNE: Sense and Details External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study SPECIALISTERNE: Sense and Details are -

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 Asd Testing.

Environmental challenges

– Asd Testing 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. Asd Testing can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Asd Testing 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 SPECIALISTERNE: Sense and Details .

Stagnating economy with rate increase

– Asd Testing 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.

Shortening product life cycle

– it is one of the major threat that Asd Testing is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Regulatory challenges

– Asd Testing 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.

Consumer confidence and its impact on Asd Testing 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.

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

– Asd Testing 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.

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 Asd Testing in the Technology & Operations sector and impact the bottomline of the organization.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Asd Testing 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.

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. Asd Testing needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.

Technology acceleration in Forth Industrial Revolution

– Asd Testing has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Asd Testing 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.

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Weighted SWOT Analysis of SPECIALISTERNE: Sense and Details 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 SPECIALISTERNE: Sense and Details 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 SPECIALISTERNE: Sense and Details 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 SPECIALISTERNE: Sense and Details 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 SPECIALISTERNE: Sense and Details 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 Asd Testing needs to make to build a sustainable competitive advantage.

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