How to Hook Knowledge When Angling for Innovation: Learning Through Licensing SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of How to Hook Knowledge When Angling for Innovation: Learning Through Licensing
To innovate today, there's no escaping the fact that firms will have to learn how to locate and extract valuable knowledge from beyond the boundaries of their own firm, sector or industry. But how do you venture outside your firm's boundaries, perhaps even allying with rivals, without giving away your own competitive advantage? Licensing knowledge through strategic alliances is one way to do it. But the author sees at least three necessary preconditions for making such arrangements work. Licensing may avoid some of the downsides of M&As, but you need to protect yourself from getting taken advantage of by partners. In a world of disruption, R&D alliances may hold the key to long-term growth and survival.
Swot Analysis of "How to Hook Knowledge When Angling for Innovation: Learning Through Licensing" written by Solon Moreira includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Licensing Knowledge facing as an external strategic factors. Some of the topics covered in How to Hook Knowledge When Angling for Innovation: Learning Through Licensing case study are - Strategic Management Strategies, Innovation, Intellectual property, Knowledge management, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the How to Hook Knowledge When Angling for Innovation: Learning Through Licensing casestudy better are - – there is backlash against globalization, supply chains are disrupted by pandemic , wage bills are increasing, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, technology disruption,
increasing household debt because of falling income levels, increasing energy prices, etc
Introduction to SWOT Analysis of How to Hook Knowledge When Angling for Innovation: Learning Through Licensing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in How to Hook Knowledge When Angling for Innovation: Learning Through Licensing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Licensing Knowledge, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Licensing Knowledge 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 How to Hook Knowledge When Angling for Innovation: Learning Through Licensing can be done for the following purposes –
1. Strategic planning using facts provided in How to Hook Knowledge When Angling for Innovation: Learning Through Licensing case study
2. Improving business portfolio management of Licensing Knowledge
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Licensing Knowledge
Strengths How to Hook Knowledge When Angling for Innovation: Learning Through Licensing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Licensing Knowledge in How to Hook Knowledge When Angling for Innovation: Learning Through Licensing Harvard Business Review case study are -
Analytics focus
– Licensing Knowledge 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 Solon Moreira 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Licensing Knowledge digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Licensing Knowledge 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.
Strong track record of project management
– Licensing Knowledge is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– How to Hook Knowledge When Angling for Innovation: Learning Through Licensing firm has clearly differentiated products in the market place. This has enabled Licensing Knowledge to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Licensing Knowledge to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Licensing Knowledge 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 How to Hook Knowledge When Angling for Innovation: Learning Through Licensing - 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 Licensing Knowledge 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
– Licensing Knowledge is one of the most innovative firm in sector. Manager in How to Hook Knowledge When Angling for Innovation: Learning Through Licensing Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Licensing Knowledge
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Licensing Knowledge does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Licensing Knowledge 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 Licensing Knowledge in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Licensing Knowledge 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 How to Hook Knowledge When Angling for Innovation: Learning Through Licensing HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Licensing Knowledge in the sector have low bargaining power. How to Hook Knowledge When Angling for Innovation: Learning Through Licensing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Licensing Knowledge to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Licensing Knowledge has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Licensing Knowledge 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.
Weaknesses How to Hook Knowledge When Angling for Innovation: Learning Through Licensing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of How to Hook Knowledge When Angling for Innovation: Learning Through Licensing are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study How to Hook Knowledge When Angling for Innovation: Learning Through Licensing, in the dynamic environment Licensing Knowledge has struggled to respond to the nimble upstart competition. Licensing Knowledge has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Licensing Knowledge 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 - How to Hook Knowledge When Angling for Innovation: Learning Through Licensing should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Licensing Knowledge has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Need for greater diversity
– Licensing Knowledge 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.
Capital Spending Reduction
– Even during the low interest decade, Licensing Knowledge 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.
No frontier risks strategy
– After analyzing the HBR case study How to Hook Knowledge When Angling for Innovation: Learning Through Licensing, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Licensing Knowledge is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study How to Hook Knowledge When Angling for Innovation: Learning Through Licensing can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Licensing Knowledge products
– To increase the profitability and margins on the products, Licensing Knowledge needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Licensing Knowledge 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.
Slow decision making process
– As mentioned earlier in the report, Licensing Knowledge 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. Licensing Knowledge 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.
Low market penetration in new markets
– Outside its home market of Licensing Knowledge, firm in the HBR case study How to Hook Knowledge When Angling for Innovation: Learning Through Licensing needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities How to Hook Knowledge When Angling for Innovation: Learning Through Licensing | 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 How to Hook Knowledge When Angling for Innovation: Learning Through Licensing are -
Loyalty marketing
– Licensing Knowledge 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Licensing Knowledge 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. Licensing Knowledge can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Manufacturing automation
– Licensing Knowledge can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Building a culture of innovation
– managers at Licensing Knowledge 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 Strategy & Execution segment.
Creating value in data economy
– The success of analytics program of Licensing Knowledge has opened avenues for new revenue streams for the organization in the industry. This can help Licensing Knowledge to build a more holistic ecosystem as suggested in the How to Hook Knowledge When Angling for Innovation: Learning Through Licensing case study. Licensing Knowledge can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Licensing Knowledge is facing challenges because of the dominance of functional experts in the organization. How to Hook Knowledge When Angling for Innovation: Learning Through Licensing 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Licensing Knowledge 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, How to Hook Knowledge When Angling for Innovation: Learning Through Licensing, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Licensing Knowledge can use these opportunities to build new business models that can help the communities that Licensing Knowledge operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Licensing Knowledge 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 Licensing Knowledge to hire the very best people irrespective of their geographical location.
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 Licensing Knowledge in the consumer business. Now Licensing Knowledge can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Licensing Knowledge can develop new processes and procedures in Strategy & Execution 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 Licensing Knowledge can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Licensing Knowledge 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.
Threats How to Hook Knowledge When Angling for Innovation: Learning Through Licensing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study How to Hook Knowledge When Angling for Innovation: Learning Through Licensing are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Licensing Knowledge in the Strategy & Execution industry. The Strategy & Execution 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study How to Hook Knowledge When Angling for Innovation: Learning Through Licensing, Licensing Knowledge may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Licensing Knowledge with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Licensing Knowledge 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.
Increasing wage structure of Licensing Knowledge
– 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 Licensing Knowledge.
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 Licensing Knowledge in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Licensing Knowledge is facing in Strategy & Execution 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 Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Licensing Knowledge 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, Licensing Knowledge 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 How to Hook Knowledge When Angling for Innovation: Learning Through Licensing .
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 Licensing Knowledge business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Licensing Knowledge 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.
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. Licensing Knowledge needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Licensing Knowledge 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.
Weighted SWOT Analysis of How to Hook Knowledge When Angling for Innovation: Learning Through Licensing 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 How to Hook Knowledge When Angling for Innovation: Learning Through Licensing 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 How to Hook Knowledge When Angling for Innovation: Learning Through Licensing 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 How to Hook Knowledge When Angling for Innovation: Learning Through Licensing 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 How to Hook Knowledge When Angling for Innovation: Learning Through Licensing 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 Licensing Knowledge needs to make to build a sustainable competitive advantage.
