From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry
There is undoubtedly hype around drones and their applications for private and professional users. Based on a brief overview of the development of the drone industry in recent years, this article examines the co-evolution of drone technology and the entrepreneurial activity linked to it. Our results highlight the industry emergence described as concept validation, including product as well as market growth with different phases of technological meaning change. We argue that further steps are needed to develop drones from nice toys to professional tools-from photography and filming applications to inspection services and large cargo logistics. For innovation managers and entrepreneurs, we describe what triggers the emergence of a technology and attracts the needed actors to unleash its transformative potential. Our research is based on industry reports, news, and market studies as well as interviews with four industry actors.
Swot Analysis of "From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry" written by Ferran Giones, Alexander Brem includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Drone Drones facing as an external strategic factors. Some of the topics covered in From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry case study are - Strategic Management Strategies, Entrepreneurship, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, geopolitical disruptions, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, increasing government debt because of Covid-19 spendings,
supply chains are disrupted by pandemic , wage bills are increasing, etc
Introduction to SWOT Analysis of From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Drone Drones, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Drone Drones 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 From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry can be done for the following purposes –
1. Strategic planning using facts provided in From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry case study
2. Improving business portfolio management of Drone Drones
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 Drone Drones
Strengths From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Drone Drones in From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Drone Drones in the sector have low bargaining power. From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Drone Drones to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Technology & Operations field
– Drone Drones 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 Drone Drones in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Drone Drones
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Drone Drones does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Drone Drones 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 From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Drone Drones has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry 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.
Ability to recruit top talent
– Drone Drones is one of the leading recruiters in the industry. Managers in the From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Drone Drones 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 Drone Drones is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Drone Drones is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry 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.
Cross disciplinary teams
– Horizontal connected teams at the Drone Drones 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Drone Drones digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Drone Drones 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.
High switching costs
– The high switching costs that Drone Drones 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.
Weaknesses From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry are -
Increasing silos among functional specialists
– The organizational structure of Drone Drones is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Drone Drones needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Drone Drones to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry 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 From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry can leverage the sales team experience to cultivate customer relationships as Drone Drones is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry 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 Drone Drones 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry, in the dynamic environment Drone Drones has struggled to respond to the nimble upstart competition. Drone Drones has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry, it seems that the employees of Drone Drones 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 to strategic competitive environment developments
– As From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry HBR case study mentions - Drone Drones 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.
Skills based hiring
– The stress on hiring functional specialists at Drone Drones 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, Ferran Giones, Alexander Brem suggests that, Drone Drones 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.
High cash cycle compare to competitors
Drone Drones 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Drone Drones needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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 Drone Drones supply chain. Even after few cautionary changes mentioned in the HBR case study - From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Drone Drones vulnerable to further global disruptions in South East Asia.
Opportunities From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry | 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 From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry are -
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 Drone Drones 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 Drone Drones can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Drone Drones 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Drone Drones can use these opportunities to build new business models that can help the communities that Drone Drones operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Drone Drones is facing challenges because of the dominance of functional experts in the organization. From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Drone Drones 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.
Creating value in data economy
– The success of analytics program of Drone Drones has opened avenues for new revenue streams for the organization in the industry. This can help Drone Drones to build a more holistic ecosystem as suggested in the From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry case study. Drone Drones can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Drone Drones to increase its market reach. Drone Drones 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.
Buying journey improvements
– Drone Drones can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Drone Drones 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.
Using analytics as competitive advantage
– Drone Drones 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 From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Drone Drones to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Drone Drones 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.
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. Drone Drones can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry are -
Technology acceleration in Forth Industrial Revolution
– Drone Drones has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Drone Drones 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.
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. Drone Drones can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Drone Drones with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Drone Drones.
Consumer confidence and its impact on Drone Drones 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry, Drone Drones 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 .
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 Drone Drones in the Technology & Operations sector and impact the bottomline of the organization.
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. Drone Drones needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Drone Drones 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.
Environmental challenges
– Drone Drones 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. Drone Drones can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing wage structure of Drone Drones
– 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 Drone Drones.
Weighted SWOT Analysis of From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry 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 From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry 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 From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry 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 From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry 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 From Toys to Tools: The Co-Evolution of Technological and Entrepreneurial Developments in the Drone Industry 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 Drone Drones needs to make to build a sustainable competitive advantage.
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