RSSWorks Inc. - An Early Stage Investment SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of RSSWorks Inc. - An Early Stage Investment
RSSWorks Inc. represents a very early stage funding opportunity - the business model has not been decided. The case provides an introduction to the thinking behind seeking first external funding for an early stage founder-funded company. Students will gain an overview of how a very early stage company gets going and begins to operate by exploring the funding options open to a company at this early stage, considering the needs and wants of the founders and the potential funders, and assessing a company at this early stage. The case also introduces the notion of an ecosystem for technology companies and its role in the success or failure of early stage companies, and the idea of launching "on the cheap."
Swot Analysis of "RSSWorks Inc. - An Early Stage Investment" written by Stewart Thornhill, Tevya Rosenberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Stage Rssworks facing as an external strategic factors. Some of the topics covered in RSSWorks Inc. - An Early Stage Investment case study are - Strategic Management Strategies, Marketing and Finance & Accounting.
Some of the macro environment factors that can be used to understand the RSSWorks Inc. - An Early Stage Investment casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, central banks are concerned over increasing inflation,
increasing energy prices, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of RSSWorks Inc. - An Early Stage Investment
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in RSSWorks Inc. - An Early Stage Investment case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Stage Rssworks, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Stage Rssworks 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 RSSWorks Inc. - An Early Stage Investment can be done for the following purposes –
1. Strategic planning using facts provided in RSSWorks Inc. - An Early Stage Investment case study
2. Improving business portfolio management of Stage Rssworks
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Stage Rssworks
Strengths RSSWorks Inc. - An Early Stage Investment | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Stage Rssworks in RSSWorks Inc. - An Early Stage Investment Harvard Business Review case study are -
Ability to recruit top talent
– Stage Rssworks is one of the leading recruiters in the industry. Managers in the RSSWorks Inc. - An Early Stage Investment are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Stage Rssworks is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Stage Rssworks is present in almost all the verticals within the industry. This has provided firm in RSSWorks Inc. - An Early Stage Investment 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 Finance & Accounting segment
- digital transformation varies from industry to industry. For Stage Rssworks digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Stage Rssworks 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.
Effective Research and Development (R&D)
– Stage Rssworks 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 RSSWorks Inc. - An Early Stage Investment - 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 Finance & Accounting industry
– RSSWorks Inc. - An Early Stage Investment firm has clearly differentiated products in the market place. This has enabled Stage Rssworks to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Stage Rssworks to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Stage Rssworks in the sector have low bargaining power. RSSWorks Inc. - An Early Stage Investment has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Stage Rssworks to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Stage Rssworks 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 RSSWorks Inc. - An Early Stage Investment HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Stage Rssworks are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High switching costs
– The high switching costs that Stage Rssworks 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.
Successful track record of launching new products
– Stage Rssworks has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Stage Rssworks 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.
Superior customer experience
– The customer experience strategy of Stage Rssworks in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses RSSWorks Inc. - An Early Stage Investment | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of RSSWorks Inc. - An Early Stage Investment are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Stage Rssworks is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study RSSWorks Inc. - An Early Stage Investment can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Stage Rssworks 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.
High operating costs
– Compare to the competitors, firm in the HBR case study RSSWorks Inc. - An Early Stage Investment 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 Stage Rssworks 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study RSSWorks Inc. - An Early Stage Investment, is just above the industry average. Stage Rssworks 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 decision making process
– As mentioned earlier in the report, Stage Rssworks has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Stage Rssworks even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study RSSWorks Inc. - An Early Stage Investment, it seems that the employees of Stage Rssworks 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.
Interest costs
– Compare to the competition, Stage Rssworks 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.
Aligning sales with marketing
– It come across in the case study RSSWorks Inc. - An Early Stage Investment 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 RSSWorks Inc. - An Early Stage Investment can leverage the sales team experience to cultivate customer relationships as Stage Rssworks is planning to shift buying processes online.
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 Stage Rssworks supply chain. Even after few cautionary changes mentioned in the HBR case study - RSSWorks Inc. - An Early Stage Investment, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Stage Rssworks vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study RSSWorks Inc. - An Early Stage Investment, in the dynamic environment Stage Rssworks has struggled to respond to the nimble upstart competition. Stage Rssworks has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Stage Rssworks products
– To increase the profitability and margins on the products, Stage Rssworks needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities RSSWorks Inc. - An Early Stage Investment | 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 RSSWorks Inc. - An Early Stage Investment are -
Building a culture of innovation
– managers at Stage Rssworks 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 Finance & Accounting segment.
Creating value in data economy
– The success of analytics program of Stage Rssworks has opened avenues for new revenue streams for the organization in the industry. This can help Stage Rssworks to build a more holistic ecosystem as suggested in the RSSWorks Inc. - An Early Stage Investment case study. Stage Rssworks can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Stage Rssworks can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Stage Rssworks to increase its market reach. Stage Rssworks 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 Stage Rssworks in the consumer business. Now Stage Rssworks can target international markets with far fewer capital restrictions requirements than the existing system.
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 Stage Rssworks 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Stage Rssworks can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Stage Rssworks 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, RSSWorks Inc. - An Early Stage Investment, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Stage Rssworks 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Stage Rssworks to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Stage Rssworks to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Stage Rssworks 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Stage Rssworks in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Stage Rssworks can use these opportunities to build new business models that can help the communities that Stage Rssworks operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Threats RSSWorks Inc. - An Early Stage Investment External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study RSSWorks Inc. - An Early Stage Investment are -
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 Stage Rssworks in the Finance & Accounting sector and impact the bottomline 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 RSSWorks Inc. - An Early Stage Investment, Stage Rssworks may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Stage Rssworks in the Finance & Accounting industry. The Finance & Accounting 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.
Regulatory challenges
– Stage Rssworks 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 Finance & Accounting industry regulations.
Increasing wage structure of Stage Rssworks
– 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 Stage Rssworks.
Consumer confidence and its impact on Stage Rssworks 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.
High dependence on third party suppliers
– Stage Rssworks 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.
Environmental challenges
– Stage Rssworks 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. Stage Rssworks can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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.
Shortening product life cycle
– it is one of the major threat that Stage Rssworks is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Stage Rssworks can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Stage Rssworks has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Stage Rssworks needs to keep up with the evolution of technology in the Finance & Accounting 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.
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 Stage Rssworks business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of RSSWorks Inc. - An Early Stage Investment 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 RSSWorks Inc. - An Early Stage Investment 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 RSSWorks Inc. - An Early Stage Investment 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 RSSWorks Inc. - An Early Stage Investment 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 RSSWorks Inc. - An Early Stage Investment 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 Stage Rssworks needs to make to build a sustainable competitive advantage.