New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study SWOT Analysis Solution
Case Study Description of New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions
A corporation that employs an "outside-in" startup program needs to screen a large number of potential startups and assess each time: What is the value of the startup's offering to our business, and what resources and support will the startup need so we can actually obtain its offering? However, many startups are not very good at communicating their customer value proposition in a way that helps the customer firm making such assessments. This article recommends that startups construct two sequential value propositions. The Innovative Offering Value Proposition communicates how the startup's offering creates superior value for the customer. It answers the question: What is extraordinary about the startup's offering that will enable the customer to solve a significant problem it has or achieve a top priority it has? The Leveraging Assistance Value Proposition conveys what the customer firm will get in return for providing support and resources to the startup. It answers the question: What will make it worthwhile from the customer's perspective to support the startup to realize its innovative offering?
Authors :: Marc Wouters, James C. Anderson, Markus Kirchberger
Swot Analysis of "New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions" written by Marc Wouters, James C. Anderson, Markus Kirchberger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Startup's Startups facing as an external strategic factors. Some of the topics covered in New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions case study are - Strategic Management Strategies, Strategy, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions casestudy better are - – central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, increasing commodity prices, increasing energy prices, there is backlash against globalization, increasing government debt because of Covid-19 spendings,
competitive advantages are harder to sustain because of technology dispersion, technology disruption, etc
Introduction to SWOT Analysis of New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Startup's Startups, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Startup's Startups 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions can be done for the following purposes –
1. Strategic planning using facts provided in New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions case study
2. Improving business portfolio management of Startup's Startups
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 Startup's Startups
Strengths New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Startup's Startups in New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Startup's Startups in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions 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.
Low bargaining power of suppliers
– Suppliers of Startup's Startups in the sector have low bargaining power. New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Startup's Startups to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Startup's Startups 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Startup's Startups digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Startup's Startups 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.
High brand equity
– Startup's Startups has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Startup's Startups to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Startup's Startups 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.
Sustainable margins compare to other players in Strategy & Execution industry
– New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions firm has clearly differentiated products in the market place. This has enabled Startup's Startups to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Startup's Startups to invest into research and development (R&D) and innovation.
Organizational Resilience of Startup's Startups
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Startup's Startups does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Startup's Startups 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Startup's Startups 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 Marc Wouters, James C. Anderson, Markus Kirchberger can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Successful track record of launching new products
– Startup's Startups has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Startup's Startups 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Startup's Startups is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions 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 star products
– The top 2 products and services of the firm as mentioned in the New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions 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 Startup's Startups has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Startup's Startups, firm in the HBR case study New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Startup's Startups 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions HBR case study mentions - Startup's Startups 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.
Capital Spending Reduction
– Even during the low interest decade, Startup's Startups 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.
Products dominated business model
– Even though Startup's Startups 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 - New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions, it seems that the employees of Startup's Startups 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.
No frontier risks strategy
– After analyzing the HBR case study New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions, 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.
Lack of clear differentiation of Startup's Startups products
– To increase the profitability and margins on the products, Startup's Startups needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions, is just above the industry average. Startup's Startups 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.
Opportunities New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions | 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions are -
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 Startup's Startups in the consumer business. Now Startup's Startups can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Startup's Startups 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Startup's Startups 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Startup's Startups 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, New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions, 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
– Startup's Startups 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Startup's Startups 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 Startup's Startups to increase its market reach. Startup's Startups 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Startup's Startups 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 Startup's Startups 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 Startup's Startups to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Startup's Startups has opened avenues for new revenue streams for the organization in the industry. This can help Startup's Startups to build a more holistic ecosystem as suggested in the New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions case study. Startup's Startups can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Startup's Startups 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. Startup's Startups 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Startup's Startups is facing challenges because of the dominance of functional experts in the organization. New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions 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.
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. Startup's Startups can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Startup's Startups can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions 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.
Threats New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions are -
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 Startup's Startups business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Startup's Startups 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Startup's Startups 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Startup's Startups 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.
Consumer confidence and its impact on Startup's Startups 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. Startup's Startups 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions, Startup's Startups 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 .
High dependence on third party suppliers
– Startup's Startups 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.
Environmental challenges
– Startup's Startups 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. Startup's Startups can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Startup's Startups can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Startup's Startups with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Startup's Startups in the Strategy & Execution sector and impact the bottomline of the organization.
Weighted SWOT Analysis of New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions 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 New-Technology Startups Seeking Pilot Customers: Crafting a Pair of Value Propositions 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 Startup's Startups needs to make to build a sustainable competitive advantage.
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