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Model N, Inc. SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Model N, Inc.


This case is available in only hard copy format (HBP does not have digital distribution rights to the content). As a result, a digital Educator Copy of the case is not available through this web site.The CEO of a Silicon Valley start-up needed to make organizational and product changes to deliver a new software solution to a Fortune 500 customer. He was wondering how he should structure the company to best meet the requirements for this particular customer, while also positioning the company for future growth. He was operating under a tight time frame and was considering options ranging from focusing the entire company on this one project to spreading out his team over several projects. The case raises such issues as developing a successful business model for a software company, outlining a distinction between software platforms and software applications, strategies for product development in tight time frames, leading a company through a transition, knowing when it is time to change directions, setting and communicating a new direction amid ambiguity, and judging how much change employees can handle at one time.

Authors :: Marco Iansiti, Alison Berkley Wagonfeld

Topics :: Technology & Operations

Tags :: Design, Product development, Reorganization, Sales, Strategy execution, Technology, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Model N, Inc." written by Marco Iansiti, Alison Berkley Wagonfeld includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Software Tight facing as an external strategic factors. Some of the topics covered in Model N, Inc. case study are - Strategic Management Strategies, Design, Product development, Reorganization, Sales, Strategy execution, Technology and Technology & Operations.


Some of the macro environment factors that can be used to understand the Model N, Inc. casestudy better are - – geopolitical disruptions, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, etc



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Introduction to SWOT Analysis of Model N, Inc.


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Model N, Inc. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Software Tight, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Software Tight 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 Model N, Inc. can be done for the following purposes –
1. Strategic planning using facts provided in Model N, Inc. case study
2. Improving business portfolio management of Software Tight
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 Software Tight




Strengths Model N, Inc. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Software Tight in Model N, Inc. Harvard Business Review case study are -

High switching costs

– The high switching costs that Software Tight 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.

Operational resilience

– The operational resilience strategy in the Model N, Inc. 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.

Innovation driven organization

– Software Tight is one of the most innovative firm in sector. Manager in Model N, Inc. Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Ability to recruit top talent

– Software Tight is one of the leading recruiters in the industry. Managers in the Model N, Inc. are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Ability to lead change in Technology & Operations field

– Software Tight 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 Software Tight in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Sustainable margins compare to other players in Technology & Operations industry

– Model N, Inc. firm has clearly differentiated products in the market place. This has enabled Software Tight to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Software Tight to invest into research and development (R&D) and innovation.

High brand equity

– Software Tight has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Software Tight to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Low bargaining power of suppliers

– Suppliers of Software Tight in the sector have low bargaining power. Model N, Inc. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Software Tight to manage not only supply disruptions but also source products at highly competitive prices.

Strong track record of project management

– Software Tight is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Training and development

– Software Tight has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Model N, Inc. 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.

Digital Transformation in Technology & Operations segment

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

Learning organization

- Software Tight 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 Software Tight is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Model N, Inc. Harvard Business Review case study emphasize – knowledge, initiative, and innovation.



02468i2 Technologies, Inc. RealNetworks, Inc.: Converging Technologies/Expanding Opportunities Improving the Product Development Process at Kirkham Instruments Corp. Semiconductor Industry, 2002 BroadVision Model N, Inc.
Net Promoter Score



Weaknesses Model N, Inc. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Model N, Inc. are -

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Model N, Inc. HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Software Tight has relatively successful track record of launching new products.

Slow to strategic competitive environment developments

– As Model N, Inc. HBR case study mentions - Software Tight takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Model N, Inc., it seems that the employees of Software Tight 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 bargaining power of channel partners

– Because of the regulatory requirements, Marco Iansiti, Alison Berkley Wagonfeld suggests that, Software Tight is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

High dependence on 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 Software Tight supply chain. Even after few cautionary changes mentioned in the HBR case study - Model N, Inc., it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Software Tight vulnerable to further global disruptions in South East Asia.

Increasing silos among functional specialists

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

Low market penetration in new markets

– Outside its home market of Software Tight, firm in the HBR case study Model N, Inc. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

High cash cycle compare to competitors

Software Tight 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.

Capital Spending Reduction

– Even during the low interest decade, Software Tight 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.

Lack of clear differentiation of Software Tight products

– To increase the profitability and margins on the products, Software Tight 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, Software Tight is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Model N, Inc. 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 Model N, Inc. | 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 Model N, Inc. are -

Developing new processes and practices

– Software Tight 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Software Tight 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, Model N, Inc., to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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 Software Tight in the consumer business. Now Software Tight can target international markets with far fewer capital restrictions requirements than the existing system.

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. Software Tight 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 Software Tight 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Software Tight 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 Software Tight to hire the very best people irrespective of their geographical location.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Software Tight 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.

Buying journey improvements

– Software Tight can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Model N, Inc. 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

– Software Tight 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 Software Tight 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.

Increase in government spending

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

Manufacturing automation

– Software Tight 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 Software Tight to increase its market reach. Software Tight 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.




Threats Model N, Inc. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Model N, Inc. are -

Stagnating economy with rate increase

– Software Tight 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.

High dependence on third party suppliers

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

Trade war between China and United States

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

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Software Tight 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 Model N, Inc. .

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Model N, Inc., Software Tight 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 .

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. Software Tight can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Technology acceleration in Forth Industrial Revolution

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

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Software Tight with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Environmental challenges

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

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.

Regulatory challenges

– Software Tight 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.

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 Software Tight business can come under increasing regulations regarding data privacy, data security, etc.




Weighted SWOT Analysis of Model N, Inc. 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 Model N, Inc. 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 Model N, Inc. 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 Model N, Inc. 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 Model N, Inc. 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 Software Tight needs to make to build a sustainable competitive advantage.



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