America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A)
Four teams across the world are furiously designing, building, testing, and learning to sail a boat that would be one-of-a-kind, in order to win the 2013 America's Cup. Choosing the best development path was a challenge as the teams had less than three years to prepare, and each decision would affect the performance of the boat as well as the duration of the sailors' training. The case traces the dilemma faced by the favorite, ORACLE TEAM USA (OTUSA), as rumors grew that the challenger was pursuing a revolutionary technology that would enable its six-ton boat to literally fly above waves. With only a year left before the Cup, should OTUSA keep refining its current technology called "skimming", or should it pivot towards "foiling" (flying)? At this stage "foiling" could be a red herring, and even if it was not, the limits of the performance of a foiling boat would remain a mystery for some time. The case explores the dilemma of managing innovation in an uncertain environment, where the decision would be sanctioned a year later by a win or a loss.
Authors :: Rory McDonald, Alan MacCormack, Vanessa Ampelas
Swot Analysis of "America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A)" written by Rory McDonald, Alan MacCormack, Vanessa Ampelas includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Foiling Boat facing as an external strategic factors. Some of the topics covered in America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) case study are - Strategic Management Strategies, Innovation, Risk management and Technology & Operations.
Some of the macro environment factors that can be used to understand the America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) casestudy better are - – increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , increasing commodity prices, technology disruption,
talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Foiling Boat, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Foiling Boat 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 America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) can be done for the following purposes –
1. Strategic planning using facts provided in America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) case study
2. Improving business portfolio management of Foiling Boat
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 Foiling Boat
Strengths America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Foiling Boat in America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) Harvard Business Review case study are -
Training and development
– Foiling Boat has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) 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.
Highly skilled collaborators
– Foiling Boat 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 America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Technology & Operations industry
– America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) firm has clearly differentiated products in the market place. This has enabled Foiling Boat to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Foiling Boat to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Foiling Boat has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Foiling Boat 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.
Operational resilience
– The operational resilience strategy in the America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) 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.
Low bargaining power of suppliers
– Suppliers of Foiling Boat in the sector have low bargaining power. America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Foiling Boat to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Foiling Boat has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Foiling Boat to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Foiling Boat is one of the most innovative firm in sector. Manager in America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Foiling Boat
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Foiling Boat does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Foiling Boat is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Foiling Boat 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.
Effective Research and Development (R&D)
– Foiling Boat 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 America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) are -
Lack of clear differentiation of Foiling Boat products
– To increase the profitability and margins on the products, Foiling Boat needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A), is just above the industry average. Foiling Boat 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.
High operating costs
– Compare to the competitors, firm in the HBR case study America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) 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 Foiling Boat 's lucrative customers.
High cash cycle compare to competitors
Foiling Boat 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, Foiling Boat 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A), it seems that the employees of Foiling Boat don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Low market penetration in new markets
– Outside its home market of Foiling Boat, firm in the HBR case study America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) 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 America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) can leverage the sales team experience to cultivate customer relationships as Foiling Boat is planning to shift buying processes online.
Need for greater diversity
– Foiling Boat has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Interest costs
– Compare to the competition, Foiling Boat 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.
Products dominated business model
– Even though Foiling Boat 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 - America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) should strive to include more intangible value offerings along with its core products and services.
Opportunities America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) | 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 America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Foiling Boat is facing challenges because of the dominance of functional experts in the organization. America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) 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.
Buying journey improvements
– Foiling Boat can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Foiling Boat 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.
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 Foiling Boat in the consumer business. Now Foiling Boat can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Foiling Boat 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 America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Foiling Boat to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Foiling Boat can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Foiling Boat has opened avenues for new revenue streams for the organization in the industry. This can help Foiling Boat to build a more holistic ecosystem as suggested in the America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) case study. Foiling Boat can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Foiling Boat 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. Foiling Boat 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.
Manufacturing automation
– Foiling Boat 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Foiling Boat 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, America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Foiling Boat can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Foiling Boat 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.
Learning at scale
– Online learning technologies has now opened space for Foiling Boat 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.
Threats America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Foiling Boat 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 America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) .
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. Foiling Boat can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Foiling Boat.
Increasing wage structure of Foiling Boat
– 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 Foiling Boat.
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 Foiling Boat business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Foiling Boat 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 America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A), Foiling Boat 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 .
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.
Consumer confidence and its impact on Foiling Boat 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Foiling Boat with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Foiling Boat 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.
High dependence on third party suppliers
– Foiling Boat 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.
Technology acceleration in Forth Industrial Revolution
– Foiling Boat has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Foiling Boat 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.
Weighted SWOT Analysis of America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) 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 America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) 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 America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) 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 America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) 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 America's Cup in 2013: Oracle Team USA vs. Emirates Team New Zealand (A) 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 Foiling Boat needs to make to build a sustainable competitive advantage.