Managing information sharing in online communities and marketplaces SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Managing information sharing in online communities and marketplaces
Companies can engage with many online social networks and communities to attract customers, disseminate product information, conduct research, and stimulate innovation. However, for these activities to be successful, it is key that consumers at these platforms trust each other and are willing to share their knowledge freely. The study presented in this article assesses what companies can do to encourage members of online communities and marketplaces to share information with others. For this purpose, a netnographic study was conducted of Etsy.com, an online marketplace for handcrafted and vintage products. The study revealed several key findings: companies can stimulate information sharing through activities that build trust and develop a norm of reciprocity; rules and guidelines are helpful to discourage abuse, but do little to stimulate sharing; and companies should give the right example by sharing knowledge themselves. The guidelines that were developed based on these findings can be used by companies that own or manage an online community as well as by those who intend to engage with one.
Authors :: Edward Boon, Leyland Pitt, Esmail Salehi-Sangari
Swot Analysis of "Managing information sharing in online communities and marketplaces" written by Edward Boon, Leyland Pitt, Esmail Salehi-Sangari includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sharing Stimulate facing as an external strategic factors. Some of the topics covered in Managing information sharing in online communities and marketplaces case study are - Strategic Management Strategies, Knowledge management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Managing information sharing in online communities and marketplaces casestudy better are - – geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, increasing commodity prices, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China,
technology disruption, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Managing information sharing in online communities and marketplaces
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Managing information sharing in online communities and marketplaces case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sharing Stimulate, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sharing Stimulate 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 Managing information sharing in online communities and marketplaces can be done for the following purposes –
1. Strategic planning using facts provided in Managing information sharing in online communities and marketplaces case study
2. Improving business portfolio management of Sharing Stimulate
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 Sharing Stimulate
Strengths Managing information sharing in online communities and marketplaces | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sharing Stimulate in Managing information sharing in online communities and marketplaces Harvard Business Review case study are -
High switching costs
– The high switching costs that Sharing Stimulate 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
– Sharing Stimulate has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sharing Stimulate 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.
Superior customer experience
– The customer experience strategy of Sharing Stimulate in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Sharing Stimulate is present in almost all the verticals within the industry. This has provided firm in Managing information sharing in online communities and marketplaces 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.
High brand equity
– Sharing Stimulate has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sharing Stimulate to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Sharing Stimulate digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sharing Stimulate 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.
Effective Research and Development (R&D)
– Sharing Stimulate 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 Managing information sharing in online communities and marketplaces - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Sharing Stimulate in the sector have low bargaining power. Managing information sharing in online communities and marketplaces has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sharing Stimulate to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Sharing Stimulate is one of the most innovative firm in sector. Manager in Managing information sharing in online communities and marketplaces Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Managing information sharing in online communities and marketplaces 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.
Sustainable margins compare to other players in Technology & Operations industry
– Managing information sharing in online communities and marketplaces firm has clearly differentiated products in the market place. This has enabled Sharing Stimulate to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Sharing Stimulate to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Sharing Stimulate 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 Managing information sharing in online communities and marketplaces HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Managing information sharing in online communities and marketplaces | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Managing information sharing in online communities and marketplaces are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Managing information sharing in online communities and marketplaces 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 Sharing Stimulate has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Managing information sharing in online communities and marketplaces 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 Managing information sharing in online communities and marketplaces can leverage the sales team experience to cultivate customer relationships as Sharing Stimulate is planning to shift buying processes online.
Lack of clear differentiation of Sharing Stimulate products
– To increase the profitability and margins on the products, Sharing Stimulate needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Sharing Stimulate 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 - Managing information sharing in online communities and marketplaces should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Sharing Stimulate 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 bargaining power of channel partners
– Because of the regulatory requirements, Edward Boon, Leyland Pitt, Esmail Salehi-Sangari suggests that, Sharing Stimulate 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.
Slow decision making process
– As mentioned earlier in the report, Sharing Stimulate 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. Sharing Stimulate 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.
Interest costs
– Compare to the competition, Sharing Stimulate 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.
Need for greater diversity
– Sharing Stimulate 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Managing information sharing in online communities and marketplaces, in the dynamic environment Sharing Stimulate has struggled to respond to the nimble upstart competition. Sharing Stimulate has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Managing information sharing in online communities and marketplaces, is just above the industry average. Sharing Stimulate 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.
Opportunities Managing information sharing in online communities and marketplaces | 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 Managing information sharing in online communities and marketplaces are -
Learning at scale
– Online learning technologies has now opened space for Sharing Stimulate to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Sharing Stimulate 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 Sharing Stimulate in the consumer business. Now Sharing Stimulate can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sharing Stimulate 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, Managing information sharing in online communities and marketplaces, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sharing Stimulate is facing challenges because of the dominance of functional experts in the organization. Managing information sharing in online communities and marketplaces 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.
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 Sharing Stimulate 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.
Better consumer reach
– The expansion of the 5G network will help Sharing Stimulate to increase its market reach. Sharing Stimulate 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.
Manufacturing automation
– Sharing Stimulate 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.
Leveraging digital technologies
– Sharing Stimulate 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.
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. Sharing Stimulate 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. Sharing Stimulate 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sharing Stimulate can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Sharing Stimulate can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sharing Stimulate can use these opportunities to build new business models that can help the communities that Sharing Stimulate operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Threats Managing information sharing in online communities and marketplaces External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Managing information sharing in online communities and marketplaces are -
High dependence on third party suppliers
– Sharing Stimulate 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Managing information sharing in online communities and marketplaces, Sharing Stimulate 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 .
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 Sharing Stimulate.
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.
Regulatory challenges
– Sharing Stimulate 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
– Sharing Stimulate 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
– Sharing Stimulate 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. Sharing Stimulate can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Sharing Stimulate business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sharing Stimulate with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Sharing Stimulate has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Sharing Stimulate 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sharing Stimulate 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 Managing information sharing in online communities and marketplaces .
Consumer confidence and its impact on Sharing Stimulate 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.
Weighted SWOT Analysis of Managing information sharing in online communities and marketplaces 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 Managing information sharing in online communities and marketplaces 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 Managing information sharing in online communities and marketplaces 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 Managing information sharing in online communities and marketplaces 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 Managing information sharing in online communities and marketplaces 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 Sharing Stimulate needs to make to build a sustainable competitive advantage.
