Free.fr - Internet for the BOP in France (B): A Model for Disruption SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Free.fr - Internet for the BOP in France (B): A Model for Disruption
Supplement to case IN1408. In 2002, the telecom industry in France witnessed changes in regulation of internet service providers. This enabled internet service provider Free.fr to challenge a crystalized competitive landscape using a combination of technology, business model innovation and focus on the bottom of the pyramid. The case describes the market environment, the strategy to the bottom of the pyramid and the impact of this market entry.
Swot Analysis of "Free.fr - Internet for the BOP in France (B): A Model for Disruption" written by Philip Parker, Mathieu Romary includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Free.fr Pyramid facing as an external strategic factors. Some of the topics covered in Free.fr - Internet for the BOP in France (B): A Model for Disruption case study are - Strategic Management Strategies, Internet, Marketing, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Free.fr - Internet for the BOP in France (B): A Model for Disruption casestudy better are - – there is backlash against globalization, increasing energy prices, there is increasing trade war between United States & China, increasing transportation and logistics costs, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%,
digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Free.fr - Internet for the BOP in France (B): A Model for Disruption
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Free.fr - Internet for the BOP in France (B): A Model for Disruption case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Free.fr Pyramid, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Free.fr Pyramid 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 Free.fr - Internet for the BOP in France (B): A Model for Disruption can be done for the following purposes –
1. Strategic planning using facts provided in Free.fr - Internet for the BOP in France (B): A Model for Disruption case study
2. Improving business portfolio management of Free.fr Pyramid
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 Free.fr Pyramid
Strengths Free.fr - Internet for the BOP in France (B): A Model for Disruption | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Free.fr Pyramid in Free.fr - Internet for the BOP in France (B): A Model for Disruption Harvard Business Review case study are -
Diverse revenue streams
– Free.fr Pyramid is present in almost all the verticals within the industry. This has provided firm in Free.fr - Internet for the BOP in France (B): A Model for Disruption 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.
Ability to lead change in Strategy & Execution field
– Free.fr Pyramid 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 Free.fr Pyramid in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Free.fr Pyramid 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.
Successful track record of launching new products
– Free.fr Pyramid has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Free.fr Pyramid 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.
Analytics focus
– Free.fr Pyramid 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 Philip Parker, Mathieu Romary 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.
Ability to recruit top talent
– Free.fr Pyramid is one of the leading recruiters in the industry. Managers in the Free.fr - Internet for the BOP in France (B): A Model for Disruption are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Free.fr Pyramid 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.
Organizational Resilience of Free.fr Pyramid
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Free.fr Pyramid does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– Free.fr - Internet for the BOP in France (B): A Model for Disruption firm has clearly differentiated products in the market place. This has enabled Free.fr Pyramid to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Free.fr Pyramid to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Free.fr Pyramid in the sector have low bargaining power. Free.fr - Internet for the BOP in France (B): A Model for Disruption has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Free.fr Pyramid to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Free.fr - Internet for the BOP in France (B): A Model for Disruption 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.
Strong track record of project management
– Free.fr Pyramid is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Free.fr - Internet for the BOP in France (B): A Model for Disruption | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Free.fr - Internet for the BOP in France (B): A Model for Disruption are -
Lack of clear differentiation of Free.fr Pyramid products
– To increase the profitability and margins on the products, Free.fr Pyramid needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Free.fr Pyramid 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Free.fr Pyramid is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Free.fr - Internet for the BOP in France (B): A Model for Disruption can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Free.fr - Internet for the BOP in France (B): A Model for Disruption, it seems that the employees of Free.fr Pyramid 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Free.fr Pyramid 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Free.fr - Internet for the BOP in France (B): A Model for Disruption, in the dynamic environment Free.fr Pyramid has struggled to respond to the nimble upstart competition. Free.fr Pyramid has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Free.fr - Internet for the BOP in France (B): A Model for Disruption 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 Free.fr Pyramid 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Free.fr - Internet for the BOP in France (B): A Model for Disruption 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 Free.fr Pyramid has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Free.fr - Internet for the BOP in France (B): A Model for Disruption, is just above the industry average. Free.fr Pyramid 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 Free.fr - Internet for the BOP in France (B): A Model for Disruption HBR case study mentions - Free.fr Pyramid 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.
Need for greater diversity
– Free.fr Pyramid 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.
Opportunities Free.fr - Internet for the BOP in France (B): A Model for Disruption | 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 Free.fr - Internet for the BOP in France (B): A Model for Disruption are -
Creating value in data economy
– The success of analytics program of Free.fr Pyramid has opened avenues for new revenue streams for the organization in the industry. This can help Free.fr Pyramid to build a more holistic ecosystem as suggested in the Free.fr - Internet for the BOP in France (B): A Model for Disruption case study. Free.fr Pyramid can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Free.fr Pyramid can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Free.fr Pyramid has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Free.fr Pyramid can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Free.fr Pyramid can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Free.fr Pyramid 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 Free.fr Pyramid to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Free.fr Pyramid is facing challenges because of the dominance of functional experts in the organization. Free.fr - Internet for the BOP in France (B): A Model for Disruption 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.
Learning at scale
– Online learning technologies has now opened space for Free.fr Pyramid 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.
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 Free.fr Pyramid 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.
Better consumer reach
– The expansion of the 5G network will help Free.fr Pyramid to increase its market reach. Free.fr Pyramid 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.
Leveraging digital technologies
– Free.fr Pyramid 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.
Buying journey improvements
– Free.fr Pyramid can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Free.fr - Internet for the BOP in France (B): A Model for Disruption 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Free.fr Pyramid can use these opportunities to build new business models that can help the communities that Free.fr Pyramid operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats Free.fr - Internet for the BOP in France (B): A Model for Disruption External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Free.fr - Internet for the BOP in France (B): A Model for Disruption are -
Increasing wage structure of Free.fr Pyramid
– 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 Free.fr Pyramid.
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. Free.fr Pyramid can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Free.fr Pyramid.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Stagnating economy with rate increase
– Free.fr Pyramid 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Free.fr - Internet for the BOP in France (B): A Model for Disruption, Free.fr Pyramid 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Free.fr Pyramid 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.
Regulatory challenges
– Free.fr Pyramid 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 Strategy & Execution industry regulations.
Consumer confidence and its impact on Free.fr Pyramid 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Free.fr Pyramid with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Free.fr Pyramid is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Free.fr Pyramid business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Free.fr Pyramid 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. Free.fr Pyramid can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of Free.fr - Internet for the BOP in France (B): A Model for Disruption 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 Free.fr - Internet for the BOP in France (B): A Model for Disruption 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 Free.fr - Internet for the BOP in France (B): A Model for Disruption 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 Free.fr - Internet for the BOP in France (B): A Model for Disruption 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 Free.fr - Internet for the BOP in France (B): A Model for Disruption 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 Free.fr Pyramid needs to make to build a sustainable competitive advantage.
