San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version
In 2008 San Francisco International Airport (known by its three-letter airport code, SFO) had announced a $383 million plan to renovate and reopen Terminal 2. Assistant deputy director of aviation security Kim Dickie and her team had selected Quantum Secure's SAFE software suite as the new Terminal 2 credentialing system, but she needed to develop a business case quickly that would convince senior management to give the green light to fund the purchase. The case describes a scenario that occurs frequently in the real world, in which a decision offers some real but qualitative value in ways that are difficult or impossible to quantify. The discussion and analysis gives students the opportunity to consider the factors that will drive the internal rate of return (IRR), net present value (NPV), and discounted payback period calculations without constructing comprehensive spreadsheet models. Analyzing the case suggests the limits of such approaches in cases where perceived value is difficult to quantify. The case prepares students to evaluate and justify purchasing requests when interacting with financial gatekeepers such as CFOs and CEOs by introducing a framework to analyze the quantifiable benefits of a capital expenditure while keeping in mind important intangible benefits.
Swot Analysis of "San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version" written by Daniel Diermeier, Evan Meagher includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Secure's Airport facing as an external strategic factors. Some of the topics covered in San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version case study are - Strategic Management Strategies, Financial management, IT, Operations management, Public relations, Regulation and Technology & Operations.
Some of the macro environment factors that can be used to understand the San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version casestudy better are - – digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs,
wage bills are increasing, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Secure's Airport, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Secure's Airport 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 San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version case study
2. Improving business portfolio management of Secure's Airport
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 Secure's Airport
Strengths San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Secure's Airport in San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version Harvard Business Review case study are -
Strong track record of project management
– Secure's Airport is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Secure's Airport is present in almost all the verticals within the industry. This has provided firm in San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version 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.
Superior customer experience
– The customer experience strategy of Secure's Airport in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Secure's Airport has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version 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.
Sustainable margins compare to other players in Technology & Operations industry
– San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version firm has clearly differentiated products in the market place. This has enabled Secure's Airport to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Secure's Airport to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Secure's Airport is one of the leading recruiters in the industry. Managers in the San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Secure's Airport has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Secure's Airport to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Secure's Airport has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Secure's Airport in the sector have low bargaining power. San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Secure's Airport to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Secure's Airport digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Secure's Airport 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
– Secure's Airport 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 Daniel Diermeier, Evan Meagher 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.
Successful track record of launching new products
– Secure's Airport has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Secure's Airport 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 San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version are -
High bargaining power of channel partners
– Because of the regulatory requirements, Daniel Diermeier, Evan Meagher suggests that, Secure's Airport 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.
Lack of clear differentiation of Secure's Airport products
– To increase the profitability and margins on the products, Secure's Airport needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Capital Spending Reduction
– Even during the low interest decade, Secure's Airport 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.
Slow decision making process
– As mentioned earlier in the report, Secure's Airport has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Secure's Airport even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Increasing silos among functional specialists
– The organizational structure of Secure's Airport is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Secure's Airport needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Secure's Airport to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Secure's Airport 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.
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 Secure's Airport supply chain. Even after few cautionary changes mentioned in the HBR case study - San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Secure's Airport vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Secure's Airport 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
Secure's Airport 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Secure's Airport is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version 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 San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version | 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 San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Secure's Airport can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Secure's Airport 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 San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Secure's Airport to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Secure's Airport 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. Secure's Airport 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.
Better consumer reach
– The expansion of the 5G network will help Secure's Airport to increase its market reach. Secure's Airport 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.
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. Secure's Airport can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Secure's Airport can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Learning at scale
– Online learning technologies has now opened space for Secure's Airport 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.
Manufacturing automation
– Secure's Airport 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Secure's Airport is facing challenges because of the dominance of functional experts in the organization. San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Secure's Airport 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.
Creating value in data economy
– The success of analytics program of Secure's Airport has opened avenues for new revenue streams for the organization in the industry. This can help Secure's Airport to build a more holistic ecosystem as suggested in the San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version case study. Secure's Airport can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Secure's Airport 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 Secure's Airport 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.
Threats San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Secure's Airport with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Secure's Airport needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 Secure's Airport.
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. Secure's Airport 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.
Stagnating economy with rate increase
– Secure's Airport 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.
Consumer confidence and its impact on Secure's Airport 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.
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 Secure's Airport business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Secure's Airport 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. Secure's Airport can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Secure's Airport 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 San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version .
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.
Increasing wage structure of Secure's Airport
– 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 Secure's Airport.
High dependence on third party suppliers
– Secure's Airport 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.
Weighted SWOT Analysis of San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version 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 San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version 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 San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version 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 San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version 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 San Francisco International Airport and Quantum Secure's SAFE for Aviation System, Spanish Version 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 Secure's Airport needs to make to build a sustainable competitive advantage.
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