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Sofame Technologies Inc.: Reorganizing for Growth SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Sofame Technologies Inc.: Reorganizing for Growth


In late 2015, the chairman of Sofame Technologies Inc. (Sofame), a Montreal-based manufacturer and marketer of energy-recapture systems, faced a dilemma. The firm, which transformed the waste heat generated by hot water and exhaust gases into usable energy, had struggled for more than a decade as it coped with low gas prices and a failed carbon credits management subsidiary. Sofame had just been delisted from the stock market and was precariously close to bankruptcy. However, the chairman continued to see value in Sofame and was considering a restructuring plan that involved the acquisition of a New York-based boilermaker that could save the firm. In addition to the financial viability of the acquisition and the difficulty of raising funds, he also needed to consider other issues, including the fact that, as the chairman of a Canadian Crown corporation, he could not preside over a firm undergoing the bankruptcy process.

Authors :: Simon Parker, Ken Mark

Topics :: Leadership & Managing People

Tags :: Mergers & acquisitions, Reorganization, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Sofame Technologies Inc.: Reorganizing for Growth" written by Simon Parker, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sofame Chairman facing as an external strategic factors. Some of the topics covered in Sofame Technologies Inc.: Reorganizing for Growth case study are - Strategic Management Strategies, Mergers & acquisitions, Reorganization and Leadership & Managing People.


Some of the macro environment factors that can be used to understand the Sofame Technologies Inc.: Reorganizing for Growth casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, increasing household debt because of falling income levels, etc



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Introduction to SWOT Analysis of Sofame Technologies Inc.: Reorganizing for Growth


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sofame Technologies Inc.: Reorganizing for Growth case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sofame Chairman, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sofame Chairman 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 Sofame Technologies Inc.: Reorganizing for Growth can be done for the following purposes –
1. Strategic planning using facts provided in Sofame Technologies Inc.: Reorganizing for Growth case study
2. Improving business portfolio management of Sofame Chairman
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 Sofame Chairman




Strengths Sofame Technologies Inc.: Reorganizing for Growth | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Sofame Chairman in Sofame Technologies Inc.: Reorganizing for Growth Harvard Business Review case study are -

Operational resilience

– The operational resilience strategy in the Sofame Technologies Inc.: Reorganizing for Growth 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.

Analytics focus

– Sofame Chairman 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 Simon Parker, Ken Mark 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.

Diverse revenue streams

– Sofame Chairman is present in almost all the verticals within the industry. This has provided firm in Sofame Technologies Inc.: Reorganizing for Growth 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.

High brand equity

– Sofame Chairman has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sofame Chairman to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Ability to lead change in Leadership & Managing People field

– Sofame Chairman 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 Sofame Chairman in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

High switching costs

– The high switching costs that Sofame Chairman 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.

Training and development

– Sofame Chairman has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Sofame Technologies Inc.: Reorganizing for Growth 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.

Organizational Resilience of Sofame Chairman

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sofame Chairman does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Superior customer experience

– The customer experience strategy of Sofame Chairman in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Learning organization

- Sofame Chairman 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 Sofame Chairman is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Sofame Technologies Inc.: Reorganizing for Growth Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Effective Research and Development (R&D)

– Sofame Chairman 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 Sofame Technologies Inc.: Reorganizing for Growth - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Sustainable margins compare to other players in Leadership & Managing People industry

– Sofame Technologies Inc.: Reorganizing for Growth firm has clearly differentiated products in the market place. This has enabled Sofame Chairman to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Sofame Chairman to invest into research and development (R&D) and innovation.






Weaknesses Sofame Technologies Inc.: Reorganizing for Growth | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Sofame Technologies Inc.: Reorganizing for Growth are -

Products dominated business model

– Even though Sofame Chairman 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 - Sofame Technologies Inc.: Reorganizing for Growth should strive to include more intangible value offerings along with its core products and services.

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 Sofame Chairman supply chain. Even after few cautionary changes mentioned in the HBR case study - Sofame Technologies Inc.: Reorganizing for Growth, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sofame Chairman vulnerable to further global disruptions in South East Asia.

Need for greater diversity

– Sofame Chairman 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.

No frontier risks strategy

– After analyzing the HBR case study Sofame Technologies Inc.: Reorganizing for Growth, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Sofame Chairman 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.

Low market penetration in new markets

– Outside its home market of Sofame Chairman, firm in the HBR case study Sofame Technologies Inc.: Reorganizing for Growth needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Sofame Technologies Inc.: Reorganizing for Growth, is just above the industry average. Sofame Chairman 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.

Slow to strategic competitive environment developments

– As Sofame Technologies Inc.: Reorganizing for Growth HBR case study mentions - Sofame Chairman 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Sofame Chairman is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Sofame Technologies Inc.: Reorganizing for Growth 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, Sofame Chairman 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.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Sofame Technologies Inc.: Reorganizing for Growth, it seems that the employees of Sofame Chairman 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.




Opportunities Sofame Technologies Inc.: Reorganizing for Growth | 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 Sofame Technologies Inc.: Reorganizing for Growth are -

Redefining models of collaboration and team work

– As explained in the weaknesses section, Sofame Chairman is facing challenges because of the dominance of functional experts in the organization. Sofame Technologies Inc.: Reorganizing for Growth 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.

Creating value in data economy

– The success of analytics program of Sofame Chairman has opened avenues for new revenue streams for the organization in the industry. This can help Sofame Chairman to build a more holistic ecosystem as suggested in the Sofame Technologies Inc.: Reorganizing for Growth case study. Sofame Chairman can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Leveraging digital technologies

– Sofame Chairman 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.

Manufacturing automation

– Sofame Chairman 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sofame Chairman can use these opportunities to build new business models that can help the communities that Sofame Chairman operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.

Using analytics as competitive advantage

– Sofame Chairman 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 Sofame Technologies Inc.: Reorganizing for Growth - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sofame Chairman to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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. Sofame Chairman 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. Sofame Chairman 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Sofame Chairman can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Sofame Technologies Inc.: Reorganizing for Growth, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Loyalty marketing

– Sofame Chairman 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.

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 Sofame Chairman in the consumer business. Now Sofame Chairman can target international markets with far fewer capital restrictions requirements than the existing system.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Sofame Chairman 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

– Sofame Chairman 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.

Learning at scale

– Online learning technologies has now opened space for Sofame Chairman 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.




Threats Sofame Technologies Inc.: Reorganizing for Growth External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Sofame Technologies Inc.: Reorganizing for Growth are -

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 Sofame Chairman business can come under increasing regulations regarding data privacy, data security, etc.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Sofame Chairman 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 Sofame Technologies Inc.: Reorganizing for Growth .

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. Sofame Chairman needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.

High dependence on third party suppliers

– Sofame Chairman 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.

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 Sofame Chairman.

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 Sofame Chairman in the Leadership & Managing People sector and impact the bottomline of the organization.

Consumer confidence and its impact on Sofame Chairman 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

– Sofame Chairman 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.

Environmental challenges

– Sofame Chairman 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. Sofame Chairman can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.

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. Sofame Chairman 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sofame Chairman with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Technology acceleration in Forth Industrial Revolution

– Sofame Chairman has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Sofame Chairman needs to keep up with the evolution of technology in the Leadership & Managing People 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.




Weighted SWOT Analysis of Sofame Technologies Inc.: Reorganizing for Growth 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 Sofame Technologies Inc.: Reorganizing for Growth 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 Sofame Technologies Inc.: Reorganizing for Growth 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 Sofame Technologies Inc.: Reorganizing for Growth 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 Sofame Technologies Inc.: Reorganizing for Growth 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 Sofame Chairman needs to make to build a sustainable competitive advantage.



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