Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate
Innovation is a key source of organizational growth and profitability. Many organizations at the front end of innovation struggle to engender an innovation approach that is effective and lasting. This article presents a framework that defines the interdependency of innovation and strategy, and then outlines the role of top management to continuously renew the positioning of the firm. Based on a synthesis of prior research-including the Dynamic Capabilities View, Innovation Orientation, and Disruptive Innovation Theory-and our own experience working with organizations, we present an operational strategy shift framework, which allows practitioners to increase, refine, and transform their firm's capability to innovate (CTI) toward achieving their strategic objectives. This framework provides guidance that leaders can use to integrate innovation into their strategic process.
Swot Analysis of "Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate" written by C. Brooke Dobni, Christopher Sand includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Innovation Framework facing as an external strategic factors. Some of the topics covered in Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate case study are - Strategic Management Strategies, Disruptive innovation, Managing organizations, Strategic planning and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, there is backlash against globalization, challanges to central banks by blockchain based private currencies,
increasing government debt because of Covid-19 spendings, technology disruption, etc
Introduction to SWOT Analysis of Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Innovation Framework, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Innovation Framework 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 Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate can be done for the following purposes –
1. Strategic planning using facts provided in Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate case study
2. Improving business portfolio management of Innovation Framework
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 Innovation Framework
Strengths Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Innovation Framework in Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate Harvard Business Review case study are -
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate firm has clearly differentiated products in the market place. This has enabled Innovation Framework to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Innovation Framework to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Innovation Framework is one of the leading recruiters in the industry. Managers in the Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Innovation Framework
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Innovation Framework does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Innovation Framework is present in almost all the verticals within the industry. This has provided firm in Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate 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.
Training and development
– Innovation Framework has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate 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.
High brand equity
– Innovation Framework has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Innovation Framework to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Innovation & Entrepreneurship field
– Innovation Framework 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 Innovation Framework in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Innovation Framework in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Innovation Framework 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 Innovation Framework is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Innovation Framework digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Innovation Framework 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.
Low bargaining power of suppliers
– Suppliers of Innovation Framework in the sector have low bargaining power. Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Innovation Framework to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Innovation Framework 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.
Weaknesses Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate are -
High operating costs
– Compare to the competitors, firm in the HBR case study Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate 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 Innovation Framework 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate, is just above the industry average. Innovation Framework 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.
High bargaining power of channel partners
– Because of the regulatory requirements, C. Brooke Dobni, Christopher Sand suggests that, Innovation Framework 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 Innovation Framework 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Innovation Framework 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.
Slow to strategic competitive environment developments
– As Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate HBR case study mentions - Innovation Framework 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.
Lack of clear differentiation of Innovation Framework products
– To increase the profitability and margins on the products, Innovation Framework needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Innovation Framework 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 - Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Innovation Framework is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Innovation Framework needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Innovation Framework to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Innovation Framework has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Innovation Framework even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate, in the dynamic environment Innovation Framework has struggled to respond to the nimble upstart competition. Innovation Framework has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate | 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 Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate are -
Learning at scale
– Online learning technologies has now opened space for Innovation Framework 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.
Building a culture of innovation
– managers at Innovation Framework 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.
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. Innovation Framework can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Innovation Framework 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Innovation Framework can use these opportunities to build new business models that can help the communities that Innovation Framework operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
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. Innovation Framework can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Innovation Framework 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, Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Innovation Framework in the consumer business. Now Innovation Framework can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Innovation Framework 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Innovation Framework can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Innovation Framework 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.
Creating value in data economy
– The success of analytics program of Innovation Framework has opened avenues for new revenue streams for the organization in the industry. This can help Innovation Framework to build a more holistic ecosystem as suggested in the Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate case study. Innovation Framework 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 Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Innovation Framework 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. Innovation Framework 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.
Threats Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate are -
Regulatory challenges
– Innovation Framework 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.
Technology acceleration in Forth Industrial Revolution
– Innovation Framework has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Innovation Framework needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate, Innovation Framework 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 .
Shortening product life cycle
– it is one of the major threat that Innovation Framework is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Innovation Framework.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Innovation Framework 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 Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate .
Increasing wage structure of Innovation Framework
– 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 Innovation Framework.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Innovation Framework 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
– Innovation Framework 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.
Consumer confidence and its impact on Innovation Framework 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. Innovation Framework 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.
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 Innovation Framework business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate 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 Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate 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 Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate 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 Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate 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 Strategy Shift: Integrating Strategy and the Firm's Capability to Innovate 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 Innovation Framework needs to make to build a sustainable competitive advantage.