Wikimedia Foundation in 2015: Changing How Humans Share Knowledge SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Wikimedia Foundation in 2015: Changing How Humans Share Knowledge
The Wikimedia Foundation is responsible for supporting Wikipedia and various other projects through administration, technical and financial support. Since its founding, Wikipedia has changed the way people around the world research information by allowing individuals to document and write history in a collaborative and decentralized fashion. The case follows Lila Tretikov as she takes on her new role as the Executive Director of the Wikimedia Foundation, and how she and the organization have to balance fundraising, technology development and managing an organization through influence and strategy.
Authors :: Robert E. Siegel, Robert A. Burgelman, Arla Xhaxho
Swot Analysis of "Wikimedia Foundation in 2015: Changing How Humans Share Knowledge" written by Robert E. Siegel, Robert A. Burgelman, Arla Xhaxho includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wikimedia Wikipedia facing as an external strategic factors. Some of the topics covered in Wikimedia Foundation in 2015: Changing How Humans Share Knowledge case study are - Strategic Management Strategies, Government, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the Wikimedia Foundation in 2015: Changing How Humans Share Knowledge casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, technology disruption, geopolitical disruptions, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, increasing commodity prices,
challanges to central banks by blockchain based private currencies, increasing energy prices, etc
Introduction to SWOT Analysis of Wikimedia Foundation in 2015: Changing How Humans Share Knowledge
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Wikimedia Foundation in 2015: Changing How Humans Share Knowledge case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wikimedia Wikipedia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wikimedia Wikipedia 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 Wikimedia Foundation in 2015: Changing How Humans Share Knowledge can be done for the following purposes –
1. Strategic planning using facts provided in Wikimedia Foundation in 2015: Changing How Humans Share Knowledge case study
2. Improving business portfolio management of Wikimedia Wikipedia
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 Wikimedia Wikipedia
Strengths Wikimedia Foundation in 2015: Changing How Humans Share Knowledge | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wikimedia Wikipedia in Wikimedia Foundation in 2015: Changing How Humans Share Knowledge Harvard Business Review case study are -
Organizational Resilience of Wikimedia Wikipedia
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wikimedia Wikipedia does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Wikimedia Foundation in 2015: Changing How Humans Share Knowledge 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Wikimedia Wikipedia digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wikimedia Wikipedia 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.
Ability to lead change in Technology & Operations field
– Wikimedia Wikipedia 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 Wikimedia Wikipedia 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 Wikimedia Wikipedia 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.
Successful track record of launching new products
– Wikimedia Wikipedia has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Wikimedia Wikipedia 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.
Analytics focus
– Wikimedia Wikipedia 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 E. Siegel, Robert A. Burgelman, Arla Xhaxho 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.
Diverse revenue streams
– Wikimedia Wikipedia is present in almost all the verticals within the industry. This has provided firm in Wikimedia Foundation in 2015: Changing How Humans Share Knowledge 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.
Low bargaining power of suppliers
– Suppliers of Wikimedia Wikipedia in the sector have low bargaining power. Wikimedia Foundation in 2015: Changing How Humans Share Knowledge has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wikimedia Wikipedia to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Wikimedia Wikipedia is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Wikimedia Wikipedia is one of the most innovative firm in sector. Manager in Wikimedia Foundation in 2015: Changing How Humans Share Knowledge Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Wikimedia Wikipedia is one of the leading recruiters in the industry. Managers in the Wikimedia Foundation in 2015: Changing How Humans Share Knowledge are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Wikimedia Foundation in 2015: Changing How Humans Share Knowledge | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Wikimedia Foundation in 2015: Changing How Humans Share Knowledge are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wikimedia Wikipedia is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Wikimedia Foundation in 2015: Changing How Humans Share Knowledge can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Wikimedia Foundation in 2015: Changing How Humans Share Knowledge, in the dynamic environment Wikimedia Wikipedia has struggled to respond to the nimble upstart competition. Wikimedia Wikipedia has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Wikimedia Wikipedia is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Wikimedia Wikipedia needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Wikimedia Wikipedia to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Wikimedia Foundation in 2015: Changing How Humans Share Knowledge 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 Wikimedia Wikipedia has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Wikimedia Wikipedia 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. Wikimedia Wikipedia 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Wikimedia Foundation in 2015: Changing How Humans Share Knowledge, it seems that the employees of Wikimedia Wikipedia 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 Wikimedia Wikipedia products
– To increase the profitability and margins on the products, Wikimedia Wikipedia 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 Wikimedia Foundation in 2015: Changing How Humans Share Knowledge, is just above the industry average. Wikimedia Wikipedia 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 cash cycle compare to competitors
Wikimedia Wikipedia 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.
Interest costs
– Compare to the competition, Wikimedia Wikipedia 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 Wikimedia Foundation in 2015: Changing How Humans Share Knowledge 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 Wikimedia Foundation in 2015: Changing How Humans Share Knowledge can leverage the sales team experience to cultivate customer relationships as Wikimedia Wikipedia is planning to shift buying processes online.
Opportunities Wikimedia Foundation in 2015: Changing How Humans Share Knowledge | 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 Wikimedia Foundation in 2015: Changing How Humans Share Knowledge are -
Better consumer reach
– The expansion of the 5G network will help Wikimedia Wikipedia to increase its market reach. Wikimedia Wikipedia 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wikimedia Wikipedia is facing challenges because of the dominance of functional experts in the organization. Wikimedia Foundation in 2015: Changing How Humans Share Knowledge 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.
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. Wikimedia Wikipedia 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. Wikimedia Wikipedia 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.
Building a culture of innovation
– managers at Wikimedia Wikipedia 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.
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 Wikimedia Wikipedia 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.
Using analytics as competitive advantage
– Wikimedia Wikipedia 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 Wikimedia Foundation in 2015: Changing How Humans Share Knowledge - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Wikimedia Wikipedia 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. Wikimedia Wikipedia can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wikimedia Wikipedia can use these opportunities to build new business models that can help the communities that Wikimedia Wikipedia operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Wikimedia Wikipedia 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 Wikimedia Wikipedia in the consumer business. Now Wikimedia Wikipedia can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Wikimedia Wikipedia 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
– Wikimedia Wikipedia 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.
Developing new processes and practices
– Wikimedia Wikipedia 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.
Threats Wikimedia Foundation in 2015: Changing How Humans Share Knowledge External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Wikimedia Foundation in 2015: Changing How Humans Share Knowledge are -
Increasing wage structure of Wikimedia Wikipedia
– 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 Wikimedia Wikipedia.
High dependence on third party suppliers
– Wikimedia Wikipedia 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.
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 Wikimedia Wikipedia.
Stagnating economy with rate increase
– Wikimedia Wikipedia 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.
Environmental challenges
– Wikimedia Wikipedia 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. Wikimedia Wikipedia can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Regulatory challenges
– Wikimedia Wikipedia 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.
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. Wikimedia Wikipedia 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.
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. Wikimedia Wikipedia needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Wikimedia Wikipedia with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Consumer confidence and its impact on Wikimedia Wikipedia 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.
Technology acceleration in Forth Industrial Revolution
– Wikimedia Wikipedia has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Wikimedia Wikipedia 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.
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. Wikimedia Wikipedia can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Wikimedia Foundation in 2015: Changing How Humans Share Knowledge 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 Wikimedia Foundation in 2015: Changing How Humans Share Knowledge 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 Wikimedia Foundation in 2015: Changing How Humans Share Knowledge 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 Wikimedia Foundation in 2015: Changing How Humans Share Knowledge 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 Wikimedia Foundation in 2015: Changing How Humans Share Knowledge 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 Wikimedia Wikipedia needs to make to build a sustainable competitive advantage.