Sunrun in 2017: Net Metering in Nevada (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Sunrun in 2017: Net Metering in Nevada (B)
Supplement to case P93A. In 2015, the Nevada Public Utility Commission (PUC) passed a ruling that essentially eliminated net metering, dramatically reducing the compensation rate for home solar owners selling excess electricity back to the utility company. As a result, solar companies, including Sunrun, were forced to close down operations, severing 3,000 industry jobs. This case profiles the PUC's decision, and Sunrun's strategy in dealing with out-of-market forces in order to retain a sales presence in the state of Nevada.
Swot Analysis of "Sunrun in 2017: Net Metering in Nevada (B)" written by Steven Callander includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nevada Sunrun facing as an external strategic factors. Some of the topics covered in Sunrun in 2017: Net Metering in Nevada (B) case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Sunrun in 2017: Net Metering in Nevada (B) casestudy better are - – geopolitical disruptions, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, there is backlash against globalization, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Sunrun in 2017: Net Metering in Nevada (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sunrun in 2017: Net Metering in Nevada (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nevada Sunrun, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nevada Sunrun 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 Sunrun in 2017: Net Metering in Nevada (B) can be done for the following purposes –
1. Strategic planning using facts provided in Sunrun in 2017: Net Metering in Nevada (B) case study
2. Improving business portfolio management of Nevada Sunrun
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Nevada Sunrun
Strengths Sunrun in 2017: Net Metering in Nevada (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nevada Sunrun in Sunrun in 2017: Net Metering in Nevada (B) Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Nevada Sunrun in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Global Business industry
– Sunrun in 2017: Net Metering in Nevada (B) firm has clearly differentiated products in the market place. This has enabled Nevada Sunrun to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Nevada Sunrun to invest into research and development (R&D) and innovation.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Nevada Sunrun digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nevada Sunrun 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
– Nevada Sunrun is one of the leading recruiters in the industry. Managers in the Sunrun in 2017: Net Metering in Nevada (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.
Diverse revenue streams
– Nevada Sunrun is present in almost all the verticals within the industry. This has provided firm in Sunrun in 2017: Net Metering in Nevada (B) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High brand equity
– Nevada Sunrun has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nevada Sunrun to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Nevada Sunrun has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nevada Sunrun 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.
Highly skilled collaborators
– Nevada Sunrun 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 Sunrun in 2017: Net Metering in Nevada (B) 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 Nevada Sunrun in the sector have low bargaining power. Sunrun in 2017: Net Metering in Nevada (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nevada Sunrun to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Nevada Sunrun 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 Steven Callander 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.
Organizational Resilience of Nevada Sunrun
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Nevada Sunrun does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Nevada Sunrun is one of the most innovative firm in sector. Manager in Sunrun in 2017: Net Metering in Nevada (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Sunrun in 2017: Net Metering in Nevada (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sunrun in 2017: Net Metering in Nevada (B) are -
Interest costs
– Compare to the competition, Nevada Sunrun 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 strategic competitive environment developments
– As Sunrun in 2017: Net Metering in Nevada (B) HBR case study mentions - Nevada Sunrun 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.
Aligning sales with marketing
– It come across in the case study Sunrun in 2017: Net Metering in Nevada (B) 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 Sunrun in 2017: Net Metering in Nevada (B) can leverage the sales team experience to cultivate customer relationships as Nevada Sunrun is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Sunrun in 2017: Net Metering in Nevada (B), in the dynamic environment Nevada Sunrun has struggled to respond to the nimble upstart competition. Nevada Sunrun has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Sunrun in 2017: Net Metering in Nevada (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 Nevada Sunrun has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nevada Sunrun is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Sunrun in 2017: Net Metering in Nevada (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.
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 Nevada Sunrun supply chain. Even after few cautionary changes mentioned in the HBR case study - Sunrun in 2017: Net Metering in Nevada (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nevada Sunrun vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Nevada Sunrun 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Sunrun in 2017: Net Metering in Nevada (B), it seems that the employees of Nevada Sunrun 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Sunrun in 2017: Net Metering in Nevada (B), is just above the industry average. Nevada Sunrun 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.
Skills based hiring
– The stress on hiring functional specialists at Nevada Sunrun 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.
Opportunities Sunrun in 2017: Net Metering in Nevada (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 Sunrun in 2017: Net Metering in Nevada (B) are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nevada Sunrun can use these opportunities to build new business models that can help the communities that Nevada Sunrun operates in. Secondly it can use opportunities from government spending in Global Business sector.
Loyalty marketing
– Nevada Sunrun 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nevada Sunrun 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, Sunrun in 2017: Net Metering in Nevada (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Nevada Sunrun 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 Sunrun in 2017: Net Metering in Nevada (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nevada Sunrun to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Nevada Sunrun can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Nevada Sunrun 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 Nevada Sunrun to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nevada Sunrun is facing challenges because of the dominance of functional experts in the organization. Sunrun in 2017: Net Metering in Nevada (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.
Buying journey improvements
– Nevada Sunrun can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sunrun in 2017: Net Metering in Nevada (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.
Better consumer reach
– The expansion of the 5G network will help Nevada Sunrun to increase its market reach. Nevada Sunrun 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.
Manufacturing automation
– Nevada Sunrun can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Nevada Sunrun 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.
Leveraging digital technologies
– Nevada Sunrun 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.
Learning at scale
– Online learning technologies has now opened space for Nevada Sunrun to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Threats Sunrun in 2017: Net Metering in Nevada (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sunrun in 2017: Net Metering in Nevada (B) are -
Shortening product life cycle
– it is one of the major threat that Nevada Sunrun is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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 Nevada Sunrun in the Global Business sector and impact the bottomline of the organization.
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 Nevada Sunrun business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nevada Sunrun with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Nevada Sunrun has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Nevada Sunrun needs to keep up with the evolution of technology in the Global Business 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.
High dependence on third party suppliers
– Nevada Sunrun 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.
Consumer confidence and its impact on Nevada Sunrun 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.
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. Nevada Sunrun 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Sunrun in 2017: Net Metering in Nevada (B), Nevada Sunrun may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Regulatory challenges
– Nevada Sunrun 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 Global Business industry regulations.
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. Nevada Sunrun needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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 Nevada Sunrun.
Weighted SWOT Analysis of Sunrun in 2017: Net Metering in Nevada (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 Sunrun in 2017: Net Metering in Nevada (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 Sunrun in 2017: Net Metering in Nevada (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 Sunrun in 2017: Net Metering in Nevada (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 Sunrun in 2017: Net Metering in Nevada (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 Nevada Sunrun needs to make to build a sustainable competitive advantage.
