Swot Analysis of "Floodgate: On the Hunt for "ThunderLizards"" written by Rory McDonald, Alix Burke, Emma Franking, Nicole Tempest includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Floodgate Thunderlizards facing as an external strategic factors. Some of the topics covered in Floodgate: On the Hunt for "ThunderLizards" case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the Floodgate: On the Hunt for "ThunderLizards" casestudy better are - – there is backlash against globalization, increasing energy prices, increasing commodity prices, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%,
cloud computing is disrupting traditional business models, wage bills are increasing, etc
Introduction to SWOT Analysis of Floodgate: On the Hunt for "ThunderLizards"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Floodgate: On the Hunt for "ThunderLizards" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Floodgate Thunderlizards, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Floodgate Thunderlizards 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 Floodgate: On the Hunt for "ThunderLizards" can be done for the following purposes –
1. Strategic planning using facts provided in Floodgate: On the Hunt for "ThunderLizards" case study
2. Improving business portfolio management of Floodgate Thunderlizards
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 Floodgate Thunderlizards
Strengths Floodgate: On the Hunt for "ThunderLizards" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Floodgate Thunderlizards in Floodgate: On the Hunt for "ThunderLizards" Harvard Business Review case study are -
Training and development
– Floodgate Thunderlizards has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Floodgate: On the Hunt for "ThunderLizards" 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.
High switching costs
– The high switching costs that Floodgate Thunderlizards 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.
Cross disciplinary teams
– Horizontal connected teams at the Floodgate Thunderlizards are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Highly skilled collaborators
– Floodgate Thunderlizards 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 Floodgate: On the Hunt for "ThunderLizards" HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Floodgate Thunderlizards has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Floodgate Thunderlizards to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Technology & Operations field
– Floodgate Thunderlizards 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 Floodgate Thunderlizards in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Technology & Operations industry
– Floodgate: On the Hunt for "ThunderLizards" firm has clearly differentiated products in the market place. This has enabled Floodgate Thunderlizards to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Floodgate Thunderlizards to invest into research and development (R&D) and innovation.
Innovation driven organization
– Floodgate Thunderlizards is one of the most innovative firm in sector. Manager in Floodgate: On the Hunt for "ThunderLizards" Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Floodgate Thunderlizards has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Floodgate Thunderlizards has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Operational resilience
– The operational resilience strategy in the Floodgate: On the Hunt for "ThunderLizards" 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
– Floodgate Thunderlizards 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 Rory McDonald, Alix Burke, Emma Franking, Nicole Tempest 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.
Learning organization
- Floodgate Thunderlizards 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 Floodgate Thunderlizards is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Floodgate: On the Hunt for "ThunderLizards" Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Floodgate: On the Hunt for "ThunderLizards" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Floodgate: On the Hunt for "ThunderLizards" are -
High cash cycle compare to competitors
Floodgate Thunderlizards 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Floodgate: On the Hunt for "ThunderLizards" 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 Floodgate Thunderlizards has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Floodgate Thunderlizards, firm in the HBR case study Floodgate: On the Hunt for "ThunderLizards" needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Floodgate Thunderlizards is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Floodgate: On the Hunt for "ThunderLizards" can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Floodgate Thunderlizards 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.
Increasing silos among functional specialists
– The organizational structure of Floodgate Thunderlizards is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Floodgate Thunderlizards needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Floodgate Thunderlizards to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Floodgate Thunderlizards 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.
No frontier risks strategy
– After analyzing the HBR case study Floodgate: On the Hunt for "ThunderLizards", 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Floodgate: On the Hunt for "ThunderLizards", it seems that the employees of Floodgate Thunderlizards 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.
Slow decision making process
– As mentioned earlier in the report, Floodgate Thunderlizards 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. Floodgate Thunderlizards 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.
Aligning sales with marketing
– It come across in the case study Floodgate: On the Hunt for "ThunderLizards" 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 Floodgate: On the Hunt for "ThunderLizards" can leverage the sales team experience to cultivate customer relationships as Floodgate Thunderlizards is planning to shift buying processes online.
Opportunities Floodgate: On the Hunt for "ThunderLizards" | 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 Floodgate: On the Hunt for "ThunderLizards" are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Floodgate Thunderlizards can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Floodgate Thunderlizards has opened avenues for new revenue streams for the organization in the industry. This can help Floodgate Thunderlizards to build a more holistic ecosystem as suggested in the Floodgate: On the Hunt for "ThunderLizards" case study. Floodgate Thunderlizards can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Floodgate Thunderlizards 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 Floodgate: On the Hunt for "ThunderLizards" - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Floodgate Thunderlizards to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Floodgate Thunderlizards can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Floodgate: On the Hunt for "ThunderLizards" 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.
Better consumer reach
– The expansion of the 5G network will help Floodgate Thunderlizards to increase its market reach. Floodgate Thunderlizards 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 Floodgate Thunderlizards 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.
Building a culture of innovation
– managers at Floodgate Thunderlizards 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, Floodgate Thunderlizards 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.
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. Floodgate Thunderlizards 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
– Floodgate Thunderlizards 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 Floodgate Thunderlizards 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, Floodgate Thunderlizards 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, Floodgate: On the Hunt for "ThunderLizards", to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Floodgate Thunderlizards 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.
Threats Floodgate: On the Hunt for "ThunderLizards" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Floodgate: On the Hunt for "ThunderLizards" are -
Increasing wage structure of Floodgate Thunderlizards
– 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 Floodgate Thunderlizards.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Floodgate Thunderlizards with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Floodgate Thunderlizards 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Floodgate: On the Hunt for "ThunderLizards", Floodgate Thunderlizards 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Floodgate Thunderlizards 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
– Floodgate Thunderlizards 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.
Environmental challenges
– Floodgate Thunderlizards 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. Floodgate Thunderlizards can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Floodgate Thunderlizards.
Stagnating economy with rate increase
– Floodgate Thunderlizards 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 acceleration in Forth Industrial Revolution
– Floodgate Thunderlizards has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Floodgate Thunderlizards 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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Floodgate Thunderlizards 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 Floodgate: On the Hunt for "ThunderLizards" .
Weighted SWOT Analysis of Floodgate: On the Hunt for "ThunderLizards" 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 Floodgate: On the Hunt for "ThunderLizards" 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 Floodgate: On the Hunt for "ThunderLizards" 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 Floodgate: On the Hunt for "ThunderLizards" 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 Floodgate: On the Hunt for "ThunderLizards" 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 Floodgate Thunderlizards needs to make to build a sustainable competitive advantage.