Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business
Mariam Naficy (Minted CEO) and Melissa Kim (Minted COO) have grown the company to become a leader in the online printed cards, independent design and art market segments. As the business has continued to scale they wrestle with simultaneously growing their existing business while also looking at expanding into new markets, all the while keeping their existing customer base engaged. The case highlights the difficult decisions management faces in deciding where to pursue growth opportunities when choices might be overly abundant.
Authors :: Sylvia Kuyel, Robert A. Burgelman, Robert E. Siegel
Swot Analysis of "Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business" written by Sylvia Kuyel, Robert A. Burgelman, Robert E. Siegel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Minted Mariam facing as an external strategic factors. Some of the topics covered in Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business case study are - Strategic Management Strategies, Internet and Technology & Operations.
Some of the macro environment factors that can be used to understand the Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business casestudy better are - – there is backlash against globalization, increasing commodity prices, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Minted Mariam, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Minted Mariam 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 Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business can be done for the following purposes –
1. Strategic planning using facts provided in Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business case study
2. Improving business portfolio management of Minted Mariam
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 Minted Mariam
Strengths Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Minted Mariam in Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business Harvard Business Review case study are -
Analytics focus
– Minted Mariam 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 Sylvia Kuyel, Robert A. Burgelman, Robert E. Siegel 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
– Minted Mariam 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 Minted Mariam in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Minted Mariam has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Minted Mariam 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.
Organizational Resilience of Minted Mariam
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Minted Mariam does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business 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.
Strong track record of project management
– Minted Mariam is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Minted Mariam 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.
Diverse revenue streams
– Minted Mariam is present in almost all the verticals within the industry. This has provided firm in Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business 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.
Learning organization
- Minted Mariam 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 Minted Mariam is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Minted Mariam 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 Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Minted Mariam in the sector have low bargaining power. Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Minted Mariam to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Technology & Operations industry
– Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business firm has clearly differentiated products in the market place. This has enabled Minted Mariam to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Minted Mariam to invest into research and development (R&D) and innovation.
Weaknesses Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business are -
Interest costs
– Compare to the competition, Minted Mariam 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.
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 Minted Mariam supply chain. Even after few cautionary changes mentioned in the HBR case study - Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Minted Mariam vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business HBR case study mentions - Minted Mariam takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High cash cycle compare to competitors
Minted Mariam 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Minted Mariam is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Sylvia Kuyel, Robert A. Burgelman, Robert E. Siegel suggests that, Minted Mariam 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.
No frontier risks strategy
– After analyzing the HBR case study Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business, 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business 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 Minted Mariam has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business 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 Minted Mariam 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Minted Mariam 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.
Lack of clear differentiation of Minted Mariam products
– To increase the profitability and margins on the products, Minted Mariam needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business | 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 Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Minted Mariam can use these opportunities to build new business models that can help the communities that Minted Mariam operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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. Minted Mariam can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Minted Mariam 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 Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Minted Mariam to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Minted Mariam in the consumer business. Now Minted Mariam 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, Minted Mariam 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, Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Minted Mariam has opened avenues for new revenue streams for the organization in the industry. This can help Minted Mariam to build a more holistic ecosystem as suggested in the Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business case study. Minted Mariam can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Minted Mariam 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 Minted Mariam to hire the very best people irrespective of their geographical location.
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 Minted Mariam 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Minted Mariam can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Minted Mariam can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business 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.
Developing new processes and practices
– Minted Mariam 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.
Manufacturing automation
– Minted Mariam 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.
Loyalty marketing
– Minted Mariam 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.
Threats Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business are -
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. Minted Mariam will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Minted Mariam needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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. Minted Mariam can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Minted Mariam 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Minted Mariam 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.
Shortening product life cycle
– it is one of the major threat that Minted Mariam is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Minted Mariam has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Minted Mariam 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Minted Mariam with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Minted Mariam business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Minted Mariam 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 Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business, Minted Mariam 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 .
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.
Environmental challenges
– Minted Mariam 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. Minted Mariam can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Weighted SWOT Analysis of Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business 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 Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business 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 Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business 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 Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business 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 Minted in 2014: Scaling and Scoping a Crowdsourcing Design Business 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 Minted Mariam needs to make to build a sustainable competitive advantage.
