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Engaging with Startups to Enhance Corporate Innovation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Engaging with Startups to Enhance Corporate Innovation


When it comes to agility, startups have an edge over large corporations-whereas large corporations sit on resources which startups can only dream of. The combination of entrepreneurial activity with corporate ability seems like a perfect match, but often goes unused. This article examines how large corporations from the tech industry have begun to tap into entrepreneurial innovation from startups. Prominent examples are used to inductively derive a set of four models commonly used to engage with startups and to describe their characteristics, challenges, and rationales. While corporate equity is the key mechanism behind more established models, newer approaches replace equity with shared technology to connect both worlds with fewer organizational costs. This article presents a typology of corporate mechanisms to engage with startups that balance speed and agility against control and strategic direction, to map the ways companies can bridge the gap between themselves and the startup world.

Authors :: Tobias Weiblen, Henry W. Chesbrough

Topics :: Technology & Operations

Tags :: Joint ventures, Managing organizations, Technology, Venture capital, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Engaging with Startups to Enhance Corporate Innovation" written by Tobias Weiblen, Henry W. Chesbrough includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Startups Corporations facing as an external strategic factors. Some of the topics covered in Engaging with Startups to Enhance Corporate Innovation case study are - Strategic Management Strategies, Joint ventures, Managing organizations, Technology, Venture capital and Technology & Operations.


Some of the macro environment factors that can be used to understand the Engaging with Startups to Enhance Corporate Innovation casestudy better are - – there is backlash against globalization, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, etc



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Introduction to SWOT Analysis of Engaging with Startups to Enhance Corporate Innovation


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




Strengths Engaging with Startups to Enhance Corporate Innovation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Startups Corporations in Engaging with Startups to Enhance Corporate Innovation Harvard Business Review case study are -

Highly skilled collaborators

– Startups Corporations 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 Engaging with Startups to Enhance Corporate Innovation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Superior customer experience

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

Successful track record of launching new products

– Startups Corporations has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Startups Corporations 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.

Strong track record of project management

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

Learning organization

- Startups Corporations 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 Startups Corporations is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Engaging with Startups to Enhance Corporate Innovation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Low bargaining power of suppliers

– Suppliers of Startups Corporations in the sector have low bargaining power. Engaging with Startups to Enhance Corporate Innovation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Startups Corporations to manage not only supply disruptions but also source products at highly competitive prices.

Organizational Resilience of Startups Corporations

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

Ability to lead change in Technology & Operations field

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

Digital Transformation in Technology & Operations segment

- digital transformation varies from industry to industry. For Startups Corporations digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Startups Corporations 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.

Training and development

– Startups Corporations has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Engaging with Startups to Enhance Corporate Innovation 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.

Diverse revenue streams

– Startups Corporations is present in almost all the verticals within the industry. This has provided firm in Engaging with Startups to Enhance Corporate Innovation 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.

Operational resilience

– The operational resilience strategy in the Engaging with Startups to Enhance Corporate Innovation 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.






Weaknesses Engaging with Startups to Enhance Corporate Innovation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Engaging with Startups to Enhance Corporate Innovation are -

Capital Spending Reduction

– Even during the low interest decade, Startups Corporations 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 Engaging with Startups to Enhance Corporate Innovation, it seems that the employees of Startups Corporations 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 Startups Corporations, firm in the HBR case study Engaging with Startups to Enhance Corporate Innovation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

High bargaining power of channel partners

– Because of the regulatory requirements, Tobias Weiblen, Henry W. Chesbrough suggests that, Startups Corporations 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.

Increasing silos among functional specialists

– The organizational structure of Startups Corporations is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Startups Corporations needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Startups Corporations to focus more on services rather than just following the product oriented approach.

Skills based hiring

– The stress on hiring functional specialists at Startups Corporations has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

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 Startups Corporations supply chain. Even after few cautionary changes mentioned in the HBR case study - Engaging with Startups to Enhance Corporate Innovation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Startups Corporations vulnerable to further global disruptions in South East Asia.

Lack of clear differentiation of Startups Corporations products

– To increase the profitability and margins on the products, Startups Corporations 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 Engaging with Startups to Enhance Corporate Innovation, is just above the industry average. Startups Corporations 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

Startups Corporations 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.

High operating costs

– Compare to the competitors, firm in the HBR case study Engaging with Startups to Enhance Corporate Innovation 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 Startups Corporations 's lucrative customers.




Opportunities Engaging with Startups to Enhance Corporate Innovation | 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 Engaging with Startups to Enhance Corporate Innovation 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. Startups Corporations 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. Startups Corporations 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.

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 Startups Corporations 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.

Manufacturing automation

– Startups Corporations 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.

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. Startups Corporations can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Building a culture of innovation

– managers at Startups Corporations 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Startups Corporations can use these opportunities to build new business models that can help the communities that Startups Corporations operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Startups Corporations 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, Engaging with Startups to Enhance Corporate Innovation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Remote work and new talent hiring opportunities

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

Better consumer reach

– The expansion of the 5G network will help Startups Corporations to increase its market reach. Startups Corporations 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Startups Corporations 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

– Startups Corporations 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 Engaging with Startups to Enhance Corporate Innovation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Startups Corporations to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Reforming the budgeting process

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

Low interest rates

– Even though inflation is raising its head in most developed economies, Startups Corporations 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.




Threats Engaging with Startups to Enhance Corporate Innovation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Engaging with Startups to Enhance Corporate Innovation are -

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. Startups Corporations 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 Startups Corporations

– 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 Startups Corporations.

Shortening product life cycle

– it is one of the major threat that Startups Corporations is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Regulatory challenges

– Startups Corporations 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 dependence on third party suppliers

– Startups Corporations 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.

Stagnating economy with rate increase

– Startups Corporations 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.

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 Engaging with Startups to Enhance Corporate Innovation, Startups Corporations 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 .

Consumer confidence and its impact on Startups Corporations 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.

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 international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Startups Corporations 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 Engaging with Startups to Enhance Corporate Innovation .

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 Startups Corporations business can come under increasing regulations regarding data privacy, data security, etc.

Environmental challenges

– Startups Corporations 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. Startups Corporations can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.




Weighted SWOT Analysis of Engaging with Startups to Enhance Corporate Innovation 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 Engaging with Startups to Enhance Corporate Innovation 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 Engaging with Startups to Enhance Corporate Innovation 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 Engaging with Startups to Enhance Corporate Innovation 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 Engaging with Startups to Enhance Corporate Innovation 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 Startups Corporations needs to make to build a sustainable competitive advantage.



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