Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
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Case Study Description of Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation
Accounts of the copyright industries in national reports suggest that strong intellectual property (IP) rights support creative firms. However, mounting evidence from sectors such as video game production and 3-D printing indicate that business models based on open IP can also be profitable. This study investigates the relationship between IP protection and value capture for creative industry firms engaged in collective/open innovation activities. A sample of 22 businesses interviewed in this study did not require exclusive ownership of creative materials but instead employed a range of strategies to compete and capture value. Benefits for some firms resemble those for participants in private-collective innovation (PCI), originally observed in open-source software development. Advantages of PCI include the ability to commercialize user improvements and a reduction in transaction costs related to seeking and obtaining permission to innovate existing ideas. Some creative firms in this study were able to generate and capture value from PCI in two directions, upstream and downstream. These dynamics offer a mechanism to understand and articulate the value of openness for creative industries policy and management of creative organizations.
Swot Analysis of "Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation" written by Kristofer Erickson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Creative Pci facing as an external strategic factors. Some of the topics covered in Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation case study are - Strategic Management Strategies, Intellectual property and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , increasing commodity prices, challanges to central banks by blockchain based private currencies, there is backlash against globalization, increasing transportation and logistics costs,
central banks are concerned over increasing inflation, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Creative Pci, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Creative Pci 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 Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation can be done for the following purposes –
1. Strategic planning using facts provided in Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation case study
2. Improving business portfolio management of Creative Pci
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 Creative Pci
Strengths Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Creative Pci in Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation Harvard Business Review case study are -
High switching costs
– The high switching costs that Creative Pci 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.
Effective Research and Development (R&D)
– Creative Pci 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 Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Creative Pci
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Creative Pci does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Creative Pci is present in almost all the verticals within the industry. This has provided firm in Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation 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.
Innovation driven organization
– Creative Pci is one of the most innovative firm in sector. Manager in Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Creative Pci 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 Creative Pci is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation firm has clearly differentiated products in the market place. This has enabled Creative Pci to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Creative Pci to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation 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.
Analytics focus
– Creative Pci 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 Kristofer Erickson 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 lead change in Innovation & Entrepreneurship field
– Creative Pci 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 Creative Pci 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 Creative Pci 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.
Superior customer experience
– The customer experience strategy of Creative Pci in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation are -
Capital Spending Reduction
– Even during the low interest decade, Creative Pci 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Creative Pci 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.
Lack of clear differentiation of Creative Pci products
– To increase the profitability and margins on the products, Creative Pci needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation HBR case study mentions - Creative Pci 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation 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 Creative Pci has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Creative Pci, firm in the HBR case study Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation 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 Creative Pci 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Kristofer Erickson suggests that, Creative Pci is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Skills based hiring
– The stress on hiring functional specialists at Creative Pci 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation, is just above the industry average. Creative Pci 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, Creative Pci is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation 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 Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation | 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 Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation are -
Creating value in data economy
– The success of analytics program of Creative Pci has opened avenues for new revenue streams for the organization in the industry. This can help Creative Pci to build a more holistic ecosystem as suggested in the Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation case study. Creative Pci can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Creative Pci can use these opportunities to build new business models that can help the communities that Creative Pci operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Leveraging digital technologies
– Creative Pci 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Creative Pci is facing challenges because of the dominance of functional experts in the organization. Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation 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.
Building a culture of innovation
– managers at Creative Pci 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.
Using analytics as competitive advantage
– Creative Pci 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 Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Creative Pci to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Creative Pci to increase its market reach. Creative Pci 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.
Learning at scale
– Online learning technologies has now opened space for Creative Pci 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 Creative Pci 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.
Buying journey improvements
– Creative Pci can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation 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.
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. Creative Pci can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Creative Pci 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. Creative Pci 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.
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 Creative Pci in the consumer business. Now Creative Pci can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation, Creative Pci may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
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 Creative Pci business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Creative Pci is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Creative Pci 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 Creative Pci in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Increasing wage structure of Creative Pci
– 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 Creative Pci.
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. Creative Pci 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 Creative Pci.
Consumer confidence and its impact on Creative Pci demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
High 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. Creative Pci needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Creative Pci 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 Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Creative Pci with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Creative Pci 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.
Weighted SWOT Analysis of Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation 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 Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation 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 Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation 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 Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation 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 Can Creative Firms Thrive Without Copyright? Value Generation and Capture from Private-Collective Innovation 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 Creative Pci needs to make to build a sustainable competitive advantage.
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