Web and IT Hosting Facilities, Technology Note SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Web and IT Hosting Facilities, Technology Note
Introduces students to the data centers where IT infrastructure is increasingly physically housed. These centralized hosting facilities represent in the information age the equivalent of power utilities in the industrial age. Students are introduced to issues of physical and Internet security, infrastructure management, and service provider partner selection.
Swot Analysis of "Web and IT Hosting Facilities, Technology Note" written by Robert D. Austin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hosting Age facing as an external strategic factors. Some of the topics covered in Web and IT Hosting Facilities, Technology Note case study are - Strategic Management Strategies, IT, Operations management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Web and IT Hosting Facilities, Technology Note casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, technology disruption, there is increasing trade war between United States & China,
competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Web and IT Hosting Facilities, Technology Note
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Web and IT Hosting Facilities, Technology Note case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hosting Age, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hosting Age 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 Web and IT Hosting Facilities, Technology Note can be done for the following purposes –
1. Strategic planning using facts provided in Web and IT Hosting Facilities, Technology Note case study
2. Improving business portfolio management of Hosting Age
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 Hosting Age
Strengths Web and IT Hosting Facilities, Technology Note | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hosting Age in Web and IT Hosting Facilities, Technology Note Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Hosting Age in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Hosting Age 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 Hosting Age is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Web and IT Hosting Facilities, Technology Note Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Hosting Age digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hosting Age 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.
Highly skilled collaborators
– Hosting Age 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 Web and IT Hosting Facilities, Technology Note HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Hosting Age
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hosting Age does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Technology & Operations industry
– Web and IT Hosting Facilities, Technology Note firm has clearly differentiated products in the market place. This has enabled Hosting Age to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Hosting Age to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Hosting Age in the sector have low bargaining power. Web and IT Hosting Facilities, Technology Note has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hosting Age to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Web and IT Hosting Facilities, Technology Note 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.
Diverse revenue streams
– Hosting Age is present in almost all the verticals within the industry. This has provided firm in Web and IT Hosting Facilities, Technology Note 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 lead change in Technology & Operations field
– Hosting Age 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 Hosting Age in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Hosting Age has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hosting Age to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Hosting Age has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hosting Age 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.
Weaknesses Web and IT Hosting Facilities, Technology Note | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Web and IT Hosting Facilities, Technology Note are -
Skills based hiring
– The stress on hiring functional specialists at Hosting Age 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Web and IT Hosting Facilities, Technology Note 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 Hosting Age 's lucrative customers.
Lack of clear differentiation of Hosting Age products
– To increase the profitability and margins on the products, Hosting Age needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Hosting Age 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 - Web and IT Hosting Facilities, Technology Note should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Hosting Age 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hosting Age is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Web and IT Hosting Facilities, Technology Note can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Hosting Age, firm in the HBR case study Web and IT Hosting Facilities, Technology Note needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert D. Austin suggests that, Hosting Age 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Web and IT Hosting Facilities, Technology Note, is just above the industry average. Hosting Age 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.
Increasing silos among functional specialists
– The organizational structure of Hosting Age is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Hosting Age needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hosting Age to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Web and IT Hosting Facilities, Technology Note, it seems that the employees of Hosting Age 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.
Opportunities Web and IT Hosting Facilities, Technology Note | 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 Web and IT Hosting Facilities, Technology Note are -
Using analytics as competitive advantage
– Hosting Age 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 Web and IT Hosting Facilities, Technology Note - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hosting Age to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Hosting Age 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.
Creating value in data economy
– The success of analytics program of Hosting Age has opened avenues for new revenue streams for the organization in the industry. This can help Hosting Age to build a more holistic ecosystem as suggested in the Web and IT Hosting Facilities, Technology Note case study. Hosting Age 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 Hosting Age can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Hosting Age can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Hosting Age 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hosting Age 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hosting Age can use these opportunities to build new business models that can help the communities that Hosting Age operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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. Hosting Age 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. Hosting Age 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.
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 Hosting Age in the consumer business. Now Hosting Age can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hosting Age to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Hosting Age to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Hosting Age 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hosting Age is facing challenges because of the dominance of functional experts in the organization. Web and IT Hosting Facilities, Technology Note 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.
Threats Web and IT Hosting Facilities, Technology Note External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Web and IT Hosting Facilities, Technology Note are -
Shortening product life cycle
– it is one of the major threat that Hosting Age is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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 Hosting Age.
Technology acceleration in Forth Industrial Revolution
– Hosting Age has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Hosting Age 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.
High dependence on third party suppliers
– Hosting Age 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.
Environmental challenges
– Hosting Age 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. Hosting Age 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. Hosting Age can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Hosting Age 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.
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 Hosting Age in the Technology & Operations sector and impact the bottomline of the organization.
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. Hosting Age 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.
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.
Increasing wage structure of Hosting Age
– 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 Hosting Age.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hosting Age 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 Web and IT Hosting Facilities, Technology Note .
Weighted SWOT Analysis of Web and IT Hosting Facilities, Technology Note 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 Web and IT Hosting Facilities, Technology Note 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 Web and IT Hosting Facilities, Technology Note 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 Web and IT Hosting Facilities, Technology Note 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 Web and IT Hosting Facilities, Technology Note 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 Hosting Age needs to make to build a sustainable competitive advantage.