Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles
Disruptive technologies tend to underperform on attributes that are considered as key attributes of incumbent technologies and require new value propositions to increase mainstream customer appeal. Yet, how do firms reconfigure their value proposition as a way to overcome the technological inferiority of disruptive technologies? This article conceptualizes and empirically investigates the process of value proposition reconfiguration. Based on evidence on the commercialization of electric vehicles, it explores the tactics firms use to reconfigure value propositions to increase market acceptance from mainstream customers. The article develops a framework showing three reconfiguration tactics: compensating, enhancing, and coupling tactics.
Swot Analysis of "Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles" written by Jonatan Pinkse, Rene Bohnsack includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Reconfiguration Tactics facing as an external strategic factors. Some of the topics covered in Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles case study are - Strategic Management Strategies, Disruptive innovation, Technology and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles casestudy better are - – geopolitical disruptions, wage bills are increasing, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, technology disruption, supply chains are disrupted by pandemic ,
central banks are concerned over increasing inflation, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Reconfiguration Tactics, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Reconfiguration Tactics 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 Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles can be done for the following purposes –
1. Strategic planning using facts provided in Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles case study
2. Improving business portfolio management of Reconfiguration Tactics
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Reconfiguration Tactics
Strengths Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Reconfiguration Tactics in Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Reconfiguration Tactics in the sector have low bargaining power. Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Reconfiguration Tactics to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Reconfiguration Tactics 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles firm has clearly differentiated products in the market place. This has enabled Reconfiguration Tactics to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Reconfiguration Tactics to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Reconfiguration Tactics 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 Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Reconfiguration Tactics 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 Jonatan Pinkse, Rene Bohnsack 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 Leadership & Managing People field
– Reconfiguration Tactics 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 Reconfiguration Tactics in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Reconfiguration Tactics has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Reconfiguration Tactics to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Reconfiguration Tactics 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 Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Reconfiguration Tactics is present in almost all the verticals within the industry. This has provided firm in Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Reconfiguration Tactics digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Reconfiguration Tactics 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.
Successful track record of launching new products
– Reconfiguration Tactics has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Reconfiguration Tactics 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
– Reconfiguration Tactics is one of the leading recruiters in the industry. Managers in the Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles are -
Aligning sales with marketing
– It come across in the case study Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles 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 Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles can leverage the sales team experience to cultivate customer relationships as Reconfiguration Tactics is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Reconfiguration Tactics is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Reconfiguration Tactics needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Reconfiguration Tactics to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles 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 Reconfiguration Tactics 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles 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 Reconfiguration Tactics has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Reconfiguration Tactics is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Reconfiguration Tactics 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 bargaining power of channel partners
– Because of the regulatory requirements, Jonatan Pinkse, Rene Bohnsack suggests that, Reconfiguration Tactics 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles, it seems that the employees of Reconfiguration Tactics 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.
Skills based hiring
– The stress on hiring functional specialists at Reconfiguration Tactics 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.
Slow to strategic competitive environment developments
– As Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles HBR case study mentions - Reconfiguration Tactics 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.
Lack of clear differentiation of Reconfiguration Tactics products
– To increase the profitability and margins on the products, Reconfiguration Tactics needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles | 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 Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Reconfiguration Tactics 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.
Better consumer reach
– The expansion of the 5G network will help Reconfiguration Tactics to increase its market reach. Reconfiguration Tactics 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.
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 Reconfiguration Tactics in the consumer business. Now Reconfiguration Tactics can target international markets with far fewer capital restrictions requirements than the existing system.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Reconfiguration Tactics can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Reconfiguration Tactics can develop new processes and procedures in Leadership & Managing People 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Reconfiguration Tactics 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. Reconfiguration Tactics 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.
Manufacturing automation
– Reconfiguration Tactics can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
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 Reconfiguration Tactics 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Reconfiguration Tactics in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Reconfiguration Tactics 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 Leadership & Managing People segment.
Loyalty marketing
– Reconfiguration Tactics 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Reconfiguration Tactics can use these opportunities to build new business models that can help the communities that Reconfiguration Tactics operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Reconfiguration Tactics can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles are -
Environmental challenges
– Reconfiguration Tactics 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. Reconfiguration Tactics can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Stagnating economy with rate increase
– Reconfiguration Tactics 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.
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 Reconfiguration Tactics.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Reconfiguration Tactics 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 Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles .
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.
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. Reconfiguration Tactics needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Reconfiguration Tactics 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 dependence on third party suppliers
– Reconfiguration Tactics 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 Reconfiguration Tactics business can come under increasing regulations regarding data privacy, data security, etc.
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.
Consumer confidence and its impact on Reconfiguration Tactics 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.
Regulatory challenges
– Reconfiguration Tactics 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 Leadership & Managing People industry regulations.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Reconfiguration Tactics can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles 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 Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles 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 Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles 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 Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles 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 Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles 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 Reconfiguration Tactics needs to make to build a sustainable competitive advantage.
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