Prototyping a Scalable Smart Village (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Prototyping a Scalable Smart Village (B)
The (A) case focuses on the development of a Smart Village in Mori, Andhra Pradesh (AP), India. The Chief Minister of the state, N. Chandrababu Naidu, has recently completed a series of visits to rural villages in his state of 60 million residents, 35 million of whom live in rural areas. CM Naidu seeks to create a new policy mechanism to address the many unmet needs of his constituents in AP. He decided to launch an experiment called Smart Villages. The case describes the many unmet needs of rural villagers in India, and also discusses some of the approaches that the Chief Minister had tried in an earlier period, before his party lost power. Back in office as Chief Minister, he is now motivated to try something new. In the (B) case, after a successful pilot in Mori, the learnings were extended to 472 Andhra Pradesh villages, commissioned by the Chief Minister Naidu of Andhra Pradesh, India. Over 500 village local ambassadors were trained by UC Berkeley-trained fellow to do house-to-house surveys for data collection and analysis. Various technologies were pivoted in selected villages using open innovation research to develop business models through co-innovation process, with input from with people on ground, startups, large firms, and government. Many lessons were learned through this process for further study to perfect frameworks and scalable business models. Particular attention was given to critical areas for improved health, farming, cottage industries, artisan products and commercial innovation through scalable platforms and global access. Formidable challenges include: logistics, government programs, and geographical and cultural impediments.
Swot Analysis of "Prototyping a Scalable Smart Village (B)" written by Solomon Darwin, Henry W. Chesbrough includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Naidu Villages facing as an external strategic factors. Some of the topics covered in Prototyping a Scalable Smart Village (B) case study are - Strategic Management Strategies, Emerging markets, Entrepreneurship, Government, Growth strategy, Innovation and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Prototyping a Scalable Smart Village (B) casestudy better are - – talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization,
increasing energy prices, wage bills are increasing, etc
Introduction to SWOT Analysis of Prototyping a Scalable Smart Village (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Prototyping a Scalable Smart Village (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Naidu Villages, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Naidu Villages 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 Prototyping a Scalable Smart Village (B) can be done for the following purposes –
1. Strategic planning using facts provided in Prototyping a Scalable Smart Village (B) case study
2. Improving business portfolio management of Naidu Villages
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 Naidu Villages
Strengths Prototyping a Scalable Smart Village (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Naidu Villages in Prototyping a Scalable Smart Village (B) Harvard Business Review case study are -
Training and development
– Naidu Villages has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Prototyping a Scalable Smart Village (B) 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.
Low bargaining power of suppliers
– Suppliers of Naidu Villages in the sector have low bargaining power. Prototyping a Scalable Smart Village (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Naidu Villages to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Naidu Villages 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.
Innovation driven organization
– Naidu Villages is one of the most innovative firm in sector. Manager in Prototyping a Scalable Smart Village (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Naidu Villages 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 Solomon Darwin, Henry W. Chesbrough 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.
Successful track record of launching new products
– Naidu Villages has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Naidu Villages 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.
Learning organization
- Naidu Villages 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 Naidu Villages is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Prototyping a Scalable Smart Village (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Naidu Villages digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Naidu Villages 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.
Ability to recruit top talent
– Naidu Villages is one of the leading recruiters in the industry. Managers in the Prototyping a Scalable Smart Village (B) 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
– Naidu Villages is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Naidu Villages has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Naidu Villages to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Prototyping a Scalable Smart Village (B) firm has clearly differentiated products in the market place. This has enabled Naidu Villages to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Naidu Villages to invest into research and development (R&D) and innovation.
Weaknesses Prototyping a Scalable Smart Village (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Prototyping a Scalable Smart Village (B) are -
High operating costs
– Compare to the competitors, firm in the HBR case study Prototyping a Scalable Smart Village (B) 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 Naidu Villages 's lucrative customers.
Interest costs
– Compare to the competition, Naidu Villages 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 Prototyping a Scalable Smart Village (B), in the dynamic environment Naidu Villages has struggled to respond to the nimble upstart competition. Naidu Villages has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Naidu Villages 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Naidu Villages 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.
Slow to strategic competitive environment developments
– As Prototyping a Scalable Smart Village (B) HBR case study mentions - Naidu Villages 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.
High cash cycle compare to competitors
Naidu Villages has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Low market penetration in new markets
– Outside its home market of Naidu Villages, firm in the HBR case study Prototyping a Scalable Smart Village (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Prototyping a Scalable Smart Village (B) 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 Naidu Villages has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Prototyping a Scalable Smart Village (B), is just above the industry average. Naidu Villages 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Naidu Villages is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Prototyping a Scalable Smart Village (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Prototyping a Scalable Smart Village (B) | 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 Prototyping a Scalable Smart Village (B) are -
Developing new processes and practices
– Naidu Villages can develop new processes and procedures in Innovation & Entrepreneurship 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Naidu Villages can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Naidu Villages 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.
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 Naidu Villages in the consumer business. Now Naidu Villages can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Naidu Villages 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Naidu Villages can use these opportunities to build new business models that can help the communities that Naidu Villages operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
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. Naidu Villages 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. Naidu Villages 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.
Using analytics as competitive advantage
– Naidu Villages 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 Prototyping a Scalable Smart Village (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Naidu Villages to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Naidu Villages has opened avenues for new revenue streams for the organization in the industry. This can help Naidu Villages to build a more holistic ecosystem as suggested in the Prototyping a Scalable Smart Village (B) case study. Naidu Villages can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Naidu Villages can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Prototyping a Scalable Smart Village (B) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Naidu Villages 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.
Learning at scale
– Online learning technologies has now opened space for Naidu Villages 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Naidu Villages is facing challenges because of the dominance of functional experts in the organization. Prototyping a Scalable Smart Village (B) 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.
Threats Prototyping a Scalable Smart Village (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Prototyping a Scalable Smart Village (B) are -
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. Naidu Villages can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Naidu Villages 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 Prototyping a Scalable Smart Village (B) .
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 Naidu Villages.
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. Naidu Villages needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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.
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. Naidu Villages 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.
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 Naidu Villages in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Environmental challenges
– Naidu Villages 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. Naidu Villages can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
High dependence on third party suppliers
– Naidu Villages 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.
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.
Regulatory challenges
– Naidu Villages 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 Innovation & Entrepreneurship industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Naidu Villages with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Naidu Villages
– 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 Naidu Villages.
Weighted SWOT Analysis of Prototyping a Scalable Smart Village (B) 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 Prototyping a Scalable Smart Village (B) 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 Prototyping a Scalable Smart Village (B) 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 Prototyping a Scalable Smart Village (B) 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 Prototyping a Scalable Smart Village (B) 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 Naidu Villages needs to make to build a sustainable competitive advantage.
