Launching and Steering a Green IT Company: The Case of GreenField Software SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Launching and Steering a Green IT Company: The Case of GreenField Software
This teaching case discusses the challenges facing GreenField Software (GFS), a start-up company offering software products and services to support sustainability. The case describes the start-up process, the crafting of the firm's strategy and structure, and the development of its products and services in the emerging 'green Information Technology (IT)' industry. It follows the key decisions made by the CEO and his executive team as they navigate a shifting and increasingly competitive marketplace. As GFS approaches the 2-year anniversary of its launch, the team must decide several key issues. These include whether to market their product as a business continuity solution or as a 'green IT' solution; what intellectual property will differentiate them from the competition; and how to respond to the changing needs of the marketplace.
Swot Analysis of "Launching and Steering a Green IT Company: The Case of GreenField Software" written by Thomas Abraham includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gfs Greenfield facing as an external strategic factors. Some of the topics covered in Launching and Steering a Green IT Company: The Case of GreenField Software case study are - Strategic Management Strategies, Manufacturing, Risk management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Launching and Steering a Green IT Company: The Case of GreenField Software casestudy better are - – challanges to central banks by blockchain based private 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%, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , there is backlash against globalization,
talent flight as more people leaving formal jobs, increasing energy prices, etc
Introduction to SWOT Analysis of Launching and Steering a Green IT Company: The Case of GreenField Software
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Launching and Steering a Green IT Company: The Case of GreenField Software case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gfs Greenfield, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gfs Greenfield 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 Launching and Steering a Green IT Company: The Case of GreenField Software can be done for the following purposes –
1. Strategic planning using facts provided in Launching and Steering a Green IT Company: The Case of GreenField Software case study
2. Improving business portfolio management of Gfs Greenfield
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 Gfs Greenfield
Strengths Launching and Steering a Green IT Company: The Case of GreenField Software | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gfs Greenfield in Launching and Steering a Green IT Company: The Case of GreenField Software Harvard Business Review case study are -
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Gfs Greenfield digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gfs Greenfield 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.
Low bargaining power of suppliers
– Suppliers of Gfs Greenfield in the sector have low bargaining power. Launching and Steering a Green IT Company: The Case of GreenField Software has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gfs Greenfield to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Gfs Greenfield is one of the most innovative firm in sector. Manager in Launching and Steering a Green IT Company: The Case of GreenField Software Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Gfs Greenfield has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gfs Greenfield to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Gfs Greenfield 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 Gfs Greenfield 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.
Operational resilience
– The operational resilience strategy in the Launching and Steering a Green IT Company: The Case of GreenField Software 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.
Analytics focus
– Gfs Greenfield 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 Thomas Abraham 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.
Ability to lead change in Technology & Operations field
– Gfs Greenfield 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 Gfs Greenfield in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Gfs Greenfield
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gfs Greenfield does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Gfs Greenfield 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 Launching and Steering a Green IT Company: The Case of GreenField Software - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Gfs Greenfield has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Launching and Steering a Green IT Company: The Case of GreenField Software 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.
Weaknesses Launching and Steering a Green IT Company: The Case of GreenField Software | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Launching and Steering a Green IT Company: The Case of GreenField Software are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Launching and Steering a Green IT Company: The Case of GreenField Software, is just above the industry average. Gfs Greenfield 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.
Need for greater diversity
– Gfs Greenfield 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.
Lack of clear differentiation of Gfs Greenfield products
– To increase the profitability and margins on the products, Gfs Greenfield needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Gfs Greenfield supply chain. Even after few cautionary changes mentioned in the HBR case study - Launching and Steering a Green IT Company: The Case of GreenField Software, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gfs Greenfield vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Gfs Greenfield 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.
No frontier risks strategy
– After analyzing the HBR case study Launching and Steering a Green IT Company: The Case of GreenField Software, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High cash cycle compare to competitors
Gfs Greenfield 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 bargaining power of channel partners
– Because of the regulatory requirements, Thomas Abraham suggests that, Gfs Greenfield 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Launching and Steering a Green IT Company: The Case of GreenField Software, in the dynamic environment Gfs Greenfield has struggled to respond to the nimble upstart competition. Gfs Greenfield has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Launching and Steering a Green IT Company: The Case of GreenField Software 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 Launching and Steering a Green IT Company: The Case of GreenField Software can leverage the sales team experience to cultivate customer relationships as Gfs Greenfield is planning to shift buying processes online.
Products dominated business model
– Even though Gfs Greenfield 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 - Launching and Steering a Green IT Company: The Case of GreenField Software should strive to include more intangible value offerings along with its core products and services.
Opportunities Launching and Steering a Green IT Company: The Case of GreenField Software | 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 Launching and Steering a Green IT Company: The Case of GreenField Software are -
Using analytics as competitive advantage
– Gfs Greenfield 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 Launching and Steering a Green IT Company: The Case of GreenField Software - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gfs Greenfield to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Gfs Greenfield 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 Gfs Greenfield to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Gfs Greenfield 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.
Developing new processes and practices
– Gfs Greenfield 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.
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 Gfs Greenfield in the consumer business. Now Gfs Greenfield can target international markets with far fewer capital restrictions requirements than the existing system.
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. Gfs Greenfield can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Gfs Greenfield has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Leveraging digital technologies
– Gfs Greenfield 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.
Buying journey improvements
– Gfs Greenfield can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Launching and Steering a Green IT Company: The Case of GreenField Software 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.
Building a culture of innovation
– managers at Gfs Greenfield 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gfs Greenfield 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.
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 Gfs Greenfield 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gfs Greenfield 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, Launching and Steering a Green IT Company: The Case of GreenField Software, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Launching and Steering a Green IT Company: The Case of GreenField Software External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Launching and Steering a Green IT Company: The Case of GreenField Software are -
Increasing wage structure of Gfs Greenfield
– 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 Gfs Greenfield.
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. Gfs Greenfield can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Gfs Greenfield has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Gfs Greenfield 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.
Environmental challenges
– Gfs Greenfield 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. Gfs Greenfield can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Regulatory challenges
– Gfs Greenfield 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.
Stagnating economy with rate increase
– Gfs Greenfield 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gfs Greenfield with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Gfs Greenfield 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Launching and Steering a Green IT Company: The Case of GreenField Software, Gfs Greenfield 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 .
High dependence on third party suppliers
– Gfs Greenfield 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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Gfs Greenfield in the Technology & Operations sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Gfs Greenfield 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.
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.
Weighted SWOT Analysis of Launching and Steering a Green IT Company: The Case of GreenField Software 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 Launching and Steering a Green IT Company: The Case of GreenField Software 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 Launching and Steering a Green IT Company: The Case of GreenField Software 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 Launching and Steering a Green IT Company: The Case of GreenField Software 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 Launching and Steering a Green IT Company: The Case of GreenField Software 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 Gfs Greenfield needs to make to build a sustainable competitive advantage.
