John Q. Inventor and the Cardboard Snowplow SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of John Q. Inventor and the Cardboard Snowplow
The Cardboard Snowplow tells the story of an inventor who has a novel idea that he believes represents a business opportunity. In response to this story, students are asked to summarize the problem (the high cost and physical exertion of clearing snow) and proposed solution (a corrugated cardboard snowplow). They are asked to (1) assess the solution's likely potential as a business opportunity; (2) identify what they perceive as the most likely sources of business launch vulnerability; and (3) propose potential tests that might inform a data-driven "go / no go" decision. Finally, they are told the true story of the cardboard snowplow - a story that motivates thoughtful discussion about not solely the perils of making assumptive leaps when assessing opportunities, but also the important pre-start questions that people sometimes forget to ask. The case is designed to (1) introduce or review the various component parts of a new business concept; (2) expose students to feasibility screening; and (3) begin breaking the habit of using subjective, assumption-driven, personal opinions in evaluating new ideas.
Swot Analysis of "John Q. Inventor and the Cardboard Snowplow" written by Elissa Grossman, David Grossman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Snowplow Cardboard facing as an external strategic factors. Some of the topics covered in John Q. Inventor and the Cardboard Snowplow case study are - Strategic Management Strategies, Innovation, Market research and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the John Q. Inventor and the Cardboard Snowplow casestudy better are - – supply chains are disrupted by pandemic , geopolitical disruptions, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, there is backlash against globalization, increasing government debt because of Covid-19 spendings,
talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of John Q. Inventor and the Cardboard Snowplow
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in John Q. Inventor and the Cardboard Snowplow case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Snowplow Cardboard, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Snowplow Cardboard 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 John Q. Inventor and the Cardboard Snowplow can be done for the following purposes –
1. Strategic planning using facts provided in John Q. Inventor and the Cardboard Snowplow case study
2. Improving business portfolio management of Snowplow Cardboard
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Snowplow Cardboard
Strengths John Q. Inventor and the Cardboard Snowplow | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Snowplow Cardboard in John Q. Inventor and the Cardboard Snowplow Harvard Business Review case study are -
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– John Q. Inventor and the Cardboard Snowplow firm has clearly differentiated products in the market place. This has enabled Snowplow Cardboard to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Snowplow Cardboard to invest into research and development (R&D) and innovation.
Learning organization
- Snowplow Cardboard 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 Snowplow Cardboard is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in John Q. Inventor and the Cardboard Snowplow Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Snowplow Cardboard
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Snowplow Cardboard does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Snowplow Cardboard has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in John Q. Inventor and the Cardboard Snowplow 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.
Operational resilience
– The operational resilience strategy in the John Q. Inventor and the Cardboard Snowplow 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.
Successful track record of launching new products
– Snowplow Cardboard has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Snowplow Cardboard 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.
Highly skilled collaborators
– Snowplow Cardboard 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 John Q. Inventor and the Cardboard Snowplow HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Snowplow Cardboard is present in almost all the verticals within the industry. This has provided firm in John Q. Inventor and the Cardboard Snowplow 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.
Effective Research and Development (R&D)
– Snowplow Cardboard 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 John Q. Inventor and the Cardboard Snowplow - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Snowplow Cardboard 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 brand equity
– Snowplow Cardboard has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Snowplow Cardboard to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Snowplow Cardboard digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Snowplow Cardboard 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.
Weaknesses John Q. Inventor and the Cardboard Snowplow | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of John Q. Inventor and the Cardboard Snowplow are -
Interest costs
– Compare to the competition, Snowplow Cardboard 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study John Q. Inventor and the Cardboard Snowplow, in the dynamic environment Snowplow Cardboard has struggled to respond to the nimble upstart competition. Snowplow Cardboard has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Snowplow Cardboard is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study John Q. Inventor and the Cardboard Snowplow can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study John Q. Inventor and the Cardboard Snowplow, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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 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 Snowplow Cardboard supply chain. Even after few cautionary changes mentioned in the HBR case study - John Q. Inventor and the Cardboard Snowplow, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Snowplow Cardboard vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Snowplow Cardboard is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Snowplow Cardboard needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Snowplow Cardboard to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Snowplow Cardboard, firm in the HBR case study John Q. Inventor and the Cardboard Snowplow needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study John Q. Inventor and the Cardboard Snowplow 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 Snowplow Cardboard 's lucrative customers.
Lack of clear differentiation of Snowplow Cardboard products
– To increase the profitability and margins on the products, Snowplow Cardboard needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Snowplow Cardboard has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Workers concerns about automation
– As automation is fast increasing in the segment, Snowplow Cardboard 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.
Opportunities John Q. Inventor and the Cardboard Snowplow | 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 John Q. Inventor and the Cardboard Snowplow are -
Loyalty marketing
– Snowplow Cardboard 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.
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. Snowplow Cardboard can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Snowplow Cardboard 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.
Building a culture of innovation
– managers at Snowplow Cardboard 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 Innovation & Entrepreneurship segment.
Better consumer reach
– The expansion of the 5G network will help Snowplow Cardboard to increase its market reach. Snowplow Cardboard 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.
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 Snowplow Cardboard 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.
Manufacturing automation
– Snowplow Cardboard can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Snowplow Cardboard is facing challenges because of the dominance of functional experts in the organization. John Q. Inventor and the Cardboard Snowplow 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.
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 Snowplow Cardboard in the consumer business. Now Snowplow Cardboard can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Snowplow Cardboard 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. Snowplow Cardboard 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.
Learning at scale
– Online learning technologies has now opened space for Snowplow Cardboard to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Using analytics as competitive advantage
– Snowplow Cardboard 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 John Q. Inventor and the Cardboard Snowplow - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Snowplow Cardboard to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Snowplow Cardboard in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Threats John Q. Inventor and the Cardboard Snowplow External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study John Q. Inventor and the Cardboard Snowplow are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Snowplow Cardboard 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 John Q. Inventor and the Cardboard Snowplow .
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.
Stagnating economy with rate increase
– Snowplow Cardboard 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.
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. Snowplow Cardboard 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.
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 Snowplow Cardboard.
Consumer confidence and its impact on Snowplow Cardboard 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.
Environmental challenges
– Snowplow Cardboard 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. Snowplow Cardboard can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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 Snowplow Cardboard in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Snowplow Cardboard 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
– Snowplow Cardboard 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.
Increasing wage structure of Snowplow Cardboard
– 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 Snowplow Cardboard.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Snowplow Cardboard in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
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 Snowplow Cardboard business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of John Q. Inventor and the Cardboard Snowplow 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 John Q. Inventor and the Cardboard Snowplow 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 John Q. Inventor and the Cardboard Snowplow 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 John Q. Inventor and the Cardboard Snowplow 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 John Q. Inventor and the Cardboard Snowplow 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 Snowplow Cardboard needs to make to build a sustainable competitive advantage.
