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Building Smart Neighborhoods at Bouygues SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Building Smart Neighborhoods at Bouygues


Can a consortium of 16 organizations, including multinational corporations, local government agencies, and startups, turn a run-down Paris suburb into a "smart" (ecologically viable, high-tech, livable) neighborhood? This case explores how Bouygues Immobilier led such a project involving Alstom, Bouygues Energies & Services, Bouygues Telecom, EDF (Electricity of France), ERDF (Electricity Distribution Grid of France), Microsoft, Schneider Electric, Steria, and Total in Issy-les-Moulineaux (France). The enormous scope and diversity of the project is presented as well as the teaming strategies and governance model that facilitated its success. IssyGridA? earned the "Golden Issy" and "Grand Paris," among other awards, for its innovation and performance.

Authors :: Amy C. Edmondson, Bertrand Moingeon, Guo Bai, Jean-Francois Harvey

Topics :: Technology & Operations

Tags :: Corporate governance, Creativity, Government, Innovation, IT, Leading teams, Organizational culture, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Building Smart Neighborhoods at Bouygues" written by Amy C. Edmondson, Bertrand Moingeon, Guo Bai, Jean-Francois Harvey includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bouygues Issy facing as an external strategic factors. Some of the topics covered in Building Smart Neighborhoods at Bouygues case study are - Strategic Management Strategies, Corporate governance, Creativity, Government, Innovation, IT, Leading teams, Organizational culture and Technology & Operations.


Some of the macro environment factors that can be used to understand the Building Smart Neighborhoods at Bouygues casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , increasing transportation and logistics costs, increasing energy prices, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc



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Introduction to SWOT Analysis of Building Smart Neighborhoods at Bouygues


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




Strengths Building Smart Neighborhoods at Bouygues | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Bouygues Issy in Building Smart Neighborhoods at Bouygues Harvard Business Review case study are -

Learning organization

- Bouygues Issy 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 Bouygues Issy is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Building Smart Neighborhoods at Bouygues Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Effective Research and Development (R&D)

– Bouygues Issy 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 Building Smart Neighborhoods at Bouygues - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Diverse revenue streams

– Bouygues Issy is present in almost all the verticals within the industry. This has provided firm in Building Smart Neighborhoods at Bouygues case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Ability to lead change in Technology & Operations field

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

Ability to recruit top talent

– Bouygues Issy is one of the leading recruiters in the industry. Managers in the Building Smart Neighborhoods at Bouygues are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Sustainable margins compare to other players in Technology & Operations industry

– Building Smart Neighborhoods at Bouygues firm has clearly differentiated products in the market place. This has enabled Bouygues Issy to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Bouygues Issy to invest into research and development (R&D) and innovation.

Strong track record of project management

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

Low bargaining power of suppliers

– Suppliers of Bouygues Issy in the sector have low bargaining power. Building Smart Neighborhoods at Bouygues has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bouygues Issy to manage not only supply disruptions but also source products at highly competitive prices.

Superior customer experience

– The customer experience strategy of Bouygues Issy in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

High switching costs

– The high switching costs that Bouygues Issy 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.

Innovation driven organization

– Bouygues Issy is one of the most innovative firm in sector. Manager in Building Smart Neighborhoods at Bouygues 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 Bouygues Issy

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bouygues Issy does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.






Weaknesses Building Smart Neighborhoods at Bouygues | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Building Smart Neighborhoods at Bouygues are -

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Building Smart Neighborhoods at Bouygues 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 Bouygues Issy has relatively successful track record of launching new products.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Building Smart Neighborhoods at Bouygues, it seems that the employees of Bouygues Issy 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.

Lack of clear differentiation of Bouygues Issy products

– To increase the profitability and margins on the products, Bouygues Issy needs to provide more differentiated products than what it is currently offering in the marketplace.

Aligning sales with marketing

– It come across in the case study Building Smart Neighborhoods at Bouygues 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 Building Smart Neighborhoods at Bouygues can leverage the sales team experience to cultivate customer relationships as Bouygues Issy is planning to shift buying processes online.

Interest costs

– Compare to the competition, Bouygues Issy 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 operating costs

– Compare to the competitors, firm in the HBR case study Building Smart Neighborhoods at Bouygues 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 Bouygues Issy 's lucrative customers.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Building Smart Neighborhoods at Bouygues, is just above the industry average. Bouygues Issy 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bouygues Issy is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Building Smart Neighborhoods at Bouygues can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Low market penetration in new markets

– Outside its home market of Bouygues Issy, firm in the HBR case study Building Smart Neighborhoods at Bouygues needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Need for greater diversity

– Bouygues Issy 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.

Products dominated business model

– Even though Bouygues Issy 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 - Building Smart Neighborhoods at Bouygues should strive to include more intangible value offerings along with its core products and services.




Opportunities Building Smart Neighborhoods at Bouygues | 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 Building Smart Neighborhoods at Bouygues are -

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. Bouygues Issy 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. Bouygues Issy 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.

Buying journey improvements

– Bouygues Issy can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Building Smart Neighborhoods at Bouygues 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.

Remote work and new talent hiring opportunities

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

Building a culture of innovation

– managers at Bouygues Issy can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Bouygues Issy can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Bouygues Issy 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.

Using analytics as competitive advantage

– Bouygues Issy 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 Building Smart Neighborhoods at Bouygues - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bouygues Issy 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. Bouygues Issy can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Manufacturing automation

– Bouygues Issy 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, Bouygues Issy is facing challenges because of the dominance of functional experts in the organization. Building Smart Neighborhoods at Bouygues 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.

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

Leveraging digital technologies

– Bouygues Issy 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.

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 Bouygues Issy 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 Building Smart Neighborhoods at Bouygues External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Building Smart Neighborhoods at Bouygues are -

Consumer confidence and its impact on Bouygues Issy 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.

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

Increasing wage structure of Bouygues Issy

– 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 Bouygues Issy.

Trade war between China and United States

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

Regulatory challenges

– Bouygues Issy 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.

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

Technology acceleration in Forth Industrial Revolution

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

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 Bouygues Issy.

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 Bouygues Issy business can come under increasing regulations regarding data privacy, data security, etc.

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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Building Smart Neighborhoods at Bouygues, Bouygues Issy 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 .

Stagnating economy with rate increase

– Bouygues Issy 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.




Weighted SWOT Analysis of Building Smart Neighborhoods at Bouygues 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 Building Smart Neighborhoods at Bouygues 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 Building Smart Neighborhoods at Bouygues 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 Building Smart Neighborhoods at Bouygues 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 Building Smart Neighborhoods at Bouygues 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 Bouygues Issy needs to make to build a sustainable competitive advantage.



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