PlaceWare: Issues in Structuring a Xerox Technology Spinout SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of PlaceWare: Issues in Structuring a Xerox Technology Spinout
Xerox has established a process to spin out technologies it develops that do not fit with its current business needs. To structure these "spinouts," a number of issues arise on how to treat people and intellectual property. PlaceWare is the first technology to go through this process.
Swot Analysis of "PlaceWare: Issues in Structuring a Xerox Technology Spinout" written by Henry W. Chesbrough includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Placeware Xerox facing as an external strategic factors. Some of the topics covered in PlaceWare: Issues in Structuring a Xerox Technology Spinout case study are - Strategic Management Strategies, Research & development, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the PlaceWare: Issues in Structuring a Xerox Technology Spinout casestudy better are - – talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, technology disruption, there is backlash against globalization, increasing transportation and logistics costs, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models,
increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of PlaceWare: Issues in Structuring a Xerox Technology Spinout
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in PlaceWare: Issues in Structuring a Xerox Technology Spinout case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Placeware Xerox, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Placeware Xerox 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 PlaceWare: Issues in Structuring a Xerox Technology Spinout can be done for the following purposes –
1. Strategic planning using facts provided in PlaceWare: Issues in Structuring a Xerox Technology Spinout case study
2. Improving business portfolio management of Placeware Xerox
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 Placeware Xerox
Strengths PlaceWare: Issues in Structuring a Xerox Technology Spinout | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Placeware Xerox in PlaceWare: Issues in Structuring a Xerox Technology Spinout Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Placeware Xerox 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.
Low bargaining power of suppliers
– Suppliers of Placeware Xerox in the sector have low bargaining power. PlaceWare: Issues in Structuring a Xerox Technology Spinout has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Placeware Xerox to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Placeware Xerox
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Placeware Xerox does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Placeware Xerox has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Placeware Xerox 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.
Innovation driven organization
– Placeware Xerox is one of the most innovative firm in sector. Manager in PlaceWare: Issues in Structuring a Xerox Technology Spinout Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Placeware Xerox in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Placeware Xerox 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.
Learning organization
- Placeware Xerox 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 Placeware Xerox is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in PlaceWare: Issues in Structuring a Xerox Technology Spinout Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Placeware Xerox has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Placeware Xerox to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the PlaceWare: Issues in Structuring a Xerox Technology Spinout 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Placeware Xerox digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Placeware Xerox 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.
Analytics focus
– Placeware Xerox 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 Henry W. Chesbrough 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 PlaceWare: Issues in Structuring a Xerox Technology Spinout | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of PlaceWare: Issues in Structuring a Xerox Technology Spinout are -
Need for greater diversity
– Placeware Xerox 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.
Interest costs
– Compare to the competition, Placeware Xerox 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.
High cash cycle compare to competitors
Placeware Xerox 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study PlaceWare: Issues in Structuring a Xerox Technology Spinout, it seems that the employees of Placeware Xerox 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.
Low market penetration in new markets
– Outside its home market of Placeware Xerox, firm in the HBR case study PlaceWare: Issues in Structuring a Xerox Technology Spinout needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Henry W. Chesbrough suggests that, Placeware Xerox is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Workers concerns about automation
– As automation is fast increasing in the segment, Placeware Xerox 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.
Increasing silos among functional specialists
– The organizational structure of Placeware Xerox is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Placeware Xerox needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Placeware Xerox to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study PlaceWare: Issues in Structuring a Xerox Technology Spinout, is just above the industry average. Placeware Xerox 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.
Lack of clear differentiation of Placeware Xerox products
– To increase the profitability and margins on the products, Placeware Xerox needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Placeware Xerox is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study PlaceWare: Issues in Structuring a Xerox Technology Spinout can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities PlaceWare: Issues in Structuring a Xerox Technology Spinout | 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 PlaceWare: Issues in Structuring a Xerox Technology Spinout are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Placeware Xerox can use these opportunities to build new business models that can help the communities that Placeware Xerox operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Placeware Xerox is facing challenges because of the dominance of functional experts in the organization. PlaceWare: Issues in Structuring a Xerox Technology Spinout 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.
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. Placeware Xerox can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Placeware Xerox 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.
Manufacturing automation
– Placeware Xerox 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.
Better consumer reach
– The expansion of the 5G network will help Placeware Xerox to increase its market reach. Placeware Xerox will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Creating value in data economy
– The success of analytics program of Placeware Xerox has opened avenues for new revenue streams for the organization in the industry. This can help Placeware Xerox to build a more holistic ecosystem as suggested in the PlaceWare: Issues in Structuring a Xerox Technology Spinout case study. Placeware Xerox can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Placeware Xerox can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Placeware Xerox 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. Placeware Xerox 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.
Using analytics as competitive advantage
– Placeware Xerox 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 PlaceWare: Issues in Structuring a Xerox Technology Spinout - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Placeware Xerox to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Placeware Xerox in the consumer business. Now Placeware Xerox can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Placeware Xerox 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Placeware Xerox 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.
Threats PlaceWare: Issues in Structuring a Xerox Technology Spinout External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study PlaceWare: Issues in Structuring a Xerox Technology Spinout are -
Increasing wage structure of Placeware Xerox
– 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 Placeware Xerox.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Placeware Xerox 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.
Shortening product life cycle
– it is one of the major threat that Placeware Xerox is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Placeware Xerox will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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 Placeware Xerox.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Placeware Xerox with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Placeware Xerox 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.
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. Placeware Xerox 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
– Placeware Xerox 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Placeware Xerox 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 PlaceWare: Issues in Structuring a Xerox Technology Spinout .
Regulatory challenges
– Placeware Xerox 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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 PlaceWare: Issues in Structuring a Xerox Technology Spinout 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 PlaceWare: Issues in Structuring a Xerox Technology Spinout 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 PlaceWare: Issues in Structuring a Xerox Technology Spinout 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 PlaceWare: Issues in Structuring a Xerox Technology Spinout 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 PlaceWare: Issues in Structuring a Xerox Technology Spinout 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 Placeware Xerox needs to make to build a sustainable competitive advantage.