Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands
Board Chair Nanne Boonstra was about to learn the details of a scaling strategy proposal for Mothers of Rotterdam, a fledgling social service program that helped the city's disadvantaged pregnant women. Boonstra's employer, a venture philanthropy foundation that was funding the program, was interested in whether it was feasible to scale the pilot program throughout Rotterdam. Other stakeholders hoped the program might be replicated elsewhere in the Netherlands or even within other European countries. Boonstra knew that some stakeholders were concerned about scaling too early-before research determined if the program was effective and for whom. He hoped that the consulting firm hired to design the scaling strategy would be able to answer the board's many questions about how best to move forward. How do you turn an innovative start-up program into a structured professional program without losing the passion and energy that comes from its founders? How do you go from a start-up to a more structured, formalized organization? Is the program's inventor the right person to scale the program? How long does a program need to run to determine whether it is effective? Is it necessary/advisable to scale the program in Rotterdam first, and focus on replicating the program in other cities afterwards or can this happen in parallel? Is there a risk of other cities trying to copy the program without guidance from the Rotterdam staff and "not getting it right"? The case goes on to unfold the story of Mothers of Rotterdam-an entrepreneurial social service program based in the Netherlands-from its inception through the board of directors meeting. The program's stakeholders, eager to broaden the impact of Mothers of Rotterdam grapple with how the program can best be scaled up. Of significance is the role of the organization's charismatic founder, Barend Rombout, who is credited with driving the program's successful-if unorthodox-approach to social service delivery. Case number 2128.0
Authors :: Laura Winig, Julie Boatright Wilson
Topics :: Innovation & Entrepreneurship
Tags :: Generational issues, Growth strategy, Human resource management, Social enterprise, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands" written by Laura Winig, Julie Boatright Wilson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rotterdam Program facing as an external strategic factors. Some of the topics covered in Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands case study are - Strategic Management Strategies, Generational issues, Growth strategy, Human resource management, Social enterprise and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, technology disruption, cloud computing is disrupting traditional business models,
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 Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rotterdam Program, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rotterdam Program 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 Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands can be done for the following purposes –
1. Strategic planning using facts provided in Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands case study
2. Improving business portfolio management of Rotterdam Program
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 Rotterdam Program
Strengths Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rotterdam Program in Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands Harvard Business Review case study are -
Successful track record of launching new products
– Rotterdam Program has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rotterdam Program 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands firm has clearly differentiated products in the market place. This has enabled Rotterdam Program to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Rotterdam Program to invest into research and development (R&D) and innovation.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Rotterdam Program digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Rotterdam Program 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
– Rotterdam Program is one of the leading recruiters in the industry. Managers in the Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Rotterdam Program 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 Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Rotterdam Program has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Superior customer experience
– The customer experience strategy of Rotterdam Program in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Rotterdam Program 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.
Analytics focus
– Rotterdam Program 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 Laura Winig, Julie Boatright Wilson 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.
High brand equity
– Rotterdam Program has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rotterdam Program to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Rotterdam Program is one of the most innovative firm in sector. Manager in Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Rotterdam Program 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.
Weaknesses Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands are -
Lack of clear differentiation of Rotterdam Program products
– To increase the profitability and margins on the products, Rotterdam Program needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Rotterdam Program supply chain. Even after few cautionary changes mentioned in the HBR case study - Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Rotterdam Program vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Rotterdam Program 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.
Interest costs
– Compare to the competition, Rotterdam Program 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.
High cash cycle compare to competitors
Rotterdam Program has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Skills based hiring
– The stress on hiring functional specialists at Rotterdam Program 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Rotterdam Program is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands HBR case study mentions - Rotterdam Program 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 operating costs
– Compare to the competitors, firm in the HBR case study Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands 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 Rotterdam Program 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands 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 Rotterdam Program has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Opportunities Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands | 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 Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands are -
Building a culture of innovation
– managers at Rotterdam Program 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Rotterdam Program 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 Rotterdam Program to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Rotterdam Program in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Rotterdam Program 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Rotterdam Program can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Rotterdam Program to increase its market reach. Rotterdam Program 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.
Buying journey improvements
– Rotterdam Program can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands 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.
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 Rotterdam Program in the consumer business. Now Rotterdam Program can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Rotterdam Program can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Rotterdam Program 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, Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Rotterdam Program 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Rotterdam Program 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
– Rotterdam Program 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.
Threats Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands 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 Rotterdam Program business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Rotterdam Program is facing in Innovation & Entrepreneurship 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.
Regulatory challenges
– Rotterdam Program 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 Innovation & Entrepreneurship industry regulations.
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. Rotterdam Program 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rotterdam Program with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Rotterdam Program 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. Rotterdam Program can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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 Rotterdam Program.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Rotterdam Program 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 Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands .
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 Rotterdam Program in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands, Rotterdam Program 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 .
High dependence on third party suppliers
– Rotterdam Program 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.
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. Rotterdam Program needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands 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 Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands 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 Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands 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 Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands 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 Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands 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 Rotterdam Program needs to make to build a sustainable competitive advantage.
