Driving Towards a Disruption? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Driving Towards a Disruption?
As Clayton Christensen drove to the studio to deliver an online executive education class, he pondered the future of management education. How big a threat did online degree programs, corporate universities, and other innovations in the delivery of management training represent to the MBA program of the Harvard Business School or other residential programs? Certainly new innovations in the industry promised to deliver management education to a much broader audience at a far lower cost. Christensen had noted that many companies were less and less present in MBA recruiting, and he believed that companies' ability to train employees within the context of their jobs was quelling their desire for MBAs with less company-specific general management training. He wondered if the changes afoot represented a threat or an opportunity for the HBS MBA program. The case presents data on the HBS MBA program, including career and professional development statistics so that students are able to assess the cost of receiving an HBS MBA, and they are able to compare that cost to an online MBA program.
Swot Analysis of "Driving Towards a Disruption?" written by Willy Shih, Matthew Noble includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mba Christensen facing as an external strategic factors. Some of the topics covered in Driving Towards a Disruption? case study are - Strategic Management Strategies, Competitive strategy, Disruptive innovation, Entrepreneurship, Internet, Marketing, Social responsibility and Technology & Operations.
Some of the macro environment factors that can be used to understand the Driving Towards a Disruption? casestudy better are - – increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, increasing energy prices, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , technology disruption, there is backlash against globalization,
wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Driving Towards a Disruption?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Driving Towards a Disruption? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mba Christensen, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mba Christensen 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 Driving Towards a Disruption? can be done for the following purposes –
1. Strategic planning using facts provided in Driving Towards a Disruption? case study
2. Improving business portfolio management of Mba Christensen
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 Mba Christensen
Strengths Driving Towards a Disruption? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mba Christensen in Driving Towards a Disruption? Harvard Business Review case study are -
Successful track record of launching new products
– Mba Christensen has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mba Christensen 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.
Ability to recruit top talent
– Mba Christensen is one of the leading recruiters in the industry. Managers in the Driving Towards a Disruption? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Mba Christensen in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Mba Christensen has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Driving Towards a Disruption? 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.
Cross disciplinary teams
– Horizontal connected teams at the Mba Christensen 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.
High switching costs
– The high switching costs that Mba Christensen 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.
Low bargaining power of suppliers
– Suppliers of Mba Christensen in the sector have low bargaining power. Driving Towards a Disruption? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mba Christensen to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Technology & Operations field
– Mba Christensen 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 Mba Christensen 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
– Driving Towards a Disruption? firm has clearly differentiated products in the market place. This has enabled Mba Christensen to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Mba Christensen to invest into research and development (R&D) and innovation.
Innovation driven organization
– Mba Christensen is one of the most innovative firm in sector. Manager in Driving Towards a Disruption? 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 Driving Towards a Disruption? 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.
High brand equity
– Mba Christensen has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mba Christensen to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Driving Towards a Disruption? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Driving Towards a Disruption? are -
Interest costs
– Compare to the competition, Mba Christensen 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mba Christensen is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Driving Towards a Disruption? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Mba Christensen is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Mba Christensen needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mba Christensen to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Mba Christensen 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 - Driving Towards a Disruption? should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Driving Towards a Disruption? 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 Mba Christensen 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Driving Towards a Disruption? 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 Mba Christensen has relatively successful track record of launching new products.
Need for greater diversity
– Mba Christensen 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Driving Towards a Disruption?, it seems that the employees of Mba Christensen 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.
Aligning sales with marketing
– It come across in the case study Driving Towards a Disruption? 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 Driving Towards a Disruption? can leverage the sales team experience to cultivate customer relationships as Mba Christensen is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Driving Towards a Disruption?, is just above the industry average. Mba Christensen needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High bargaining power of channel partners
– Because of the regulatory requirements, Willy Shih, Matthew Noble suggests that, Mba Christensen 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.
Opportunities Driving Towards a Disruption? | 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 Driving Towards a Disruption? are -
Developing new processes and practices
– Mba Christensen 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.
Creating value in data economy
– The success of analytics program of Mba Christensen has opened avenues for new revenue streams for the organization in the industry. This can help Mba Christensen to build a more holistic ecosystem as suggested in the Driving Towards a Disruption? case study. Mba Christensen can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Mba Christensen 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 Mba Christensen to increase its market reach. Mba Christensen 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mba Christensen is facing challenges because of the dominance of functional experts in the organization. Driving Towards a Disruption? 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mba Christensen can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Mba Christensen 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. Mba Christensen 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.
Buying journey improvements
– Mba Christensen can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Driving Towards a Disruption? 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.
Leveraging digital technologies
– Mba Christensen 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mba Christensen 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. Mba Christensen can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Mba Christensen 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.
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 Mba Christensen in the consumer business. Now Mba Christensen can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Driving Towards a Disruption? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Driving Towards a Disruption? are -
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.
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 Mba Christensen in the Technology & Operations sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mba Christensen 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 Driving Towards a Disruption? .
High dependence on third party suppliers
– Mba Christensen 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.
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 Mba Christensen business can come under increasing regulations regarding data privacy, data security, etc.
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. Mba Christensen can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Mba Christensen
– 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 Mba Christensen.
Environmental challenges
– Mba Christensen 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. Mba Christensen can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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. Mba Christensen needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mba Christensen with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Mba Christensen 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 acceleration in Forth Industrial Revolution
– Mba Christensen has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Mba Christensen 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.
Shortening product life cycle
– it is one of the major threat that Mba Christensen is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Driving Towards a Disruption? 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 Driving Towards a Disruption? 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 Driving Towards a Disruption? 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 Driving Towards a Disruption? 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 Driving Towards a Disruption? 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 Mba Christensen needs to make to build a sustainable competitive advantage.