Hanging Up the (Old) Phone: IP Communications in 2004 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Hanging Up the (Old) Phone: IP Communications in 2004
The fundamental change to telephony service that Voice over Internet Protocol (VoIP) portended affected a number of constituencies. Start-up companies, as well as large, established phone companies and cable television providers, offered VoIP calling plans that could substitute many of the phone services sold by the same or other established providers. These same providers might also benefit from VoIP by using it to enter new markets. Other companies that previously had nothing to do with telephony could become VoIP telephone service providers: For example, the necessary software codes to make VoIP calls were written into Microsoft's XP operating system through its Instant Messaging feature. However, Internet Protocol communications represented a fundamental challenge to the complex web of federal and state regulations that governed telephony. Because VoIP telephony was not tied to physical telephony networks in specific geographic regions, it raised the question of whether federal or state regulators would have jurisdiction over VoIP services and how jurisdiction would be exercised.
Authors :: Robert A. Burgelman, Les Vadasz, Philip Meza
Swot Analysis of "Hanging Up the (Old) Phone: IP Communications in 2004" written by Robert A. Burgelman, Les Vadasz, Philip Meza includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Voip Telephony facing as an external strategic factors. Some of the topics covered in Hanging Up the (Old) Phone: IP Communications in 2004 case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the Hanging Up the (Old) Phone: IP Communications in 2004 casestudy better are - – technology disruption, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing energy prices,
supply chains are disrupted by pandemic , wage bills are increasing, etc
Introduction to SWOT Analysis of Hanging Up the (Old) Phone: IP Communications in 2004
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hanging Up the (Old) Phone: IP Communications in 2004 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Voip Telephony, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Voip Telephony 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 Hanging Up the (Old) Phone: IP Communications in 2004 can be done for the following purposes –
1. Strategic planning using facts provided in Hanging Up the (Old) Phone: IP Communications in 2004 case study
2. Improving business portfolio management of Voip Telephony
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 Voip Telephony
Strengths Hanging Up the (Old) Phone: IP Communications in 2004 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Voip Telephony in Hanging Up the (Old) Phone: IP Communications in 2004 Harvard Business Review case study are -
Ability to lead change in Technology & Operations field
– Voip Telephony 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 Voip Telephony in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Voip Telephony 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.
Training and development
– Voip Telephony has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Hanging Up the (Old) Phone: IP Communications in 2004 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.
High brand equity
– Voip Telephony has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Voip Telephony to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Hanging Up the (Old) Phone: IP Communications in 2004 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.
Learning organization
- Voip Telephony 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 Voip Telephony is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Hanging Up the (Old) Phone: IP Communications in 2004 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Voip Telephony 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 A. Burgelman, Les Vadasz, Philip Meza 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.
Ability to recruit top talent
– Voip Telephony is one of the leading recruiters in the industry. Managers in the Hanging Up the (Old) Phone: IP Communications in 2004 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Voip Telephony 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.
Sustainable margins compare to other players in Technology & Operations industry
– Hanging Up the (Old) Phone: IP Communications in 2004 firm has clearly differentiated products in the market place. This has enabled Voip Telephony to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Voip Telephony to invest into research and development (R&D) and innovation.
Organizational Resilience of Voip Telephony
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Voip Telephony does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Voip Telephony is present in almost all the verticals within the industry. This has provided firm in Hanging Up the (Old) Phone: IP Communications in 2004 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.
Weaknesses Hanging Up the (Old) Phone: IP Communications in 2004 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hanging Up the (Old) Phone: IP Communications in 2004 are -
No frontier risks strategy
– After analyzing the HBR case study Hanging Up the (Old) Phone: IP Communications in 2004, 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.
Need for greater diversity
– Voip Telephony 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Hanging Up the (Old) Phone: IP Communications in 2004, is just above the industry average. Voip Telephony 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.
Low market penetration in new markets
– Outside its home market of Voip Telephony, firm in the HBR case study Hanging Up the (Old) Phone: IP Communications in 2004 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Voip Telephony products
– To increase the profitability and margins on the products, Voip Telephony needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Voip Telephony is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Voip Telephony needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Voip Telephony to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Voip Telephony 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.
Interest costs
– Compare to the competition, Voip Telephony 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 Hanging Up the (Old) Phone: IP Communications in 2004 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 Hanging Up the (Old) Phone: IP Communications in 2004 can leverage the sales team experience to cultivate customer relationships as Voip Telephony is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Hanging Up the (Old) Phone: IP Communications in 2004, it seems that the employees of Voip Telephony 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Voip Telephony 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.
Opportunities Hanging Up the (Old) Phone: IP Communications in 2004 | 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 Hanging Up the (Old) Phone: IP Communications in 2004 are -
Buying journey improvements
– Voip Telephony can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Hanging Up the (Old) Phone: IP Communications in 2004 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Voip Telephony is facing challenges because of the dominance of functional experts in the organization. Hanging Up the (Old) Phone: IP Communications in 2004 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.
Creating value in data economy
– The success of analytics program of Voip Telephony has opened avenues for new revenue streams for the organization in the industry. This can help Voip Telephony to build a more holistic ecosystem as suggested in the Hanging Up the (Old) Phone: IP Communications in 2004 case study. Voip Telephony can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Voip Telephony 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.
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 Voip Telephony 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.
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. Voip Telephony can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Voip Telephony can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Voip Telephony can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Voip Telephony can use these opportunities to build new business models that can help the communities that Voip Telephony operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Voip Telephony 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 Voip Telephony to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Voip Telephony 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, Hanging Up the (Old) Phone: IP Communications in 2004, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Voip Telephony 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.
Manufacturing automation
– Voip Telephony 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.
Threats Hanging Up the (Old) Phone: IP Communications in 2004 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hanging Up the (Old) Phone: IP Communications in 2004 are -
Technology acceleration in Forth Industrial Revolution
– Voip Telephony has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Voip Telephony needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Regulatory challenges
– Voip Telephony 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.
Shortening product life cycle
– it is one of the major threat that Voip Telephony is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Hanging Up the (Old) Phone: IP Communications in 2004, Voip Telephony may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Voip Telephony 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 Hanging Up the (Old) Phone: IP Communications in 2004 .
Consumer confidence and its impact on Voip Telephony 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.
Stagnating economy with rate increase
– Voip Telephony 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.
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.
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 Voip Telephony business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Voip Telephony 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Voip Telephony 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.
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.
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. Voip Telephony 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.
Weighted SWOT Analysis of Hanging Up the (Old) Phone: IP Communications in 2004 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 Hanging Up the (Old) Phone: IP Communications in 2004 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 Hanging Up the (Old) Phone: IP Communications in 2004 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 Hanging Up the (Old) Phone: IP Communications in 2004 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 Hanging Up the (Old) Phone: IP Communications in 2004 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 Voip Telephony needs to make to build a sustainable competitive advantage.