A Winning Formula: Disruptive Innovation + Jobs to be Done SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of A Winning Formula: Disruptive Innovation + Jobs to be Done
New business opportunities stem from understanding the full landscape of 'jobs' that people are trying to get done on a daily basis. The authors begin by explaining two of Harvard Professor Clayton Christensen's best-known concepts: disruptive innovation and Jobs to be Done. Then, they argue that these theories are natural complements: Jointly, they show where incumbents are vulnerable and how customers hunger for new solutions. They introduce the 'Jobs Atlas', and show how it can be used to bridge the two theories and develop creative solutions for customers.
Swot Analysis of "A Winning Formula: Disruptive Innovation + Jobs to be Done" written by Stephen Wunker, David Farber includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jobs Theories facing as an external strategic factors. Some of the topics covered in A Winning Formula: Disruptive Innovation + Jobs to be Done case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the A Winning Formula: Disruptive Innovation + Jobs to be Done casestudy better are - – increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google,
challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of A Winning Formula: Disruptive Innovation + Jobs to be Done
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A Winning Formula: Disruptive Innovation + Jobs to be Done case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jobs Theories, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jobs Theories 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 A Winning Formula: Disruptive Innovation + Jobs to be Done can be done for the following purposes –
1. Strategic planning using facts provided in A Winning Formula: Disruptive Innovation + Jobs to be Done case study
2. Improving business portfolio management of Jobs Theories
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 Jobs Theories
Strengths A Winning Formula: Disruptive Innovation + Jobs to be Done | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jobs Theories in A Winning Formula: Disruptive Innovation + Jobs to be Done Harvard Business Review case study are -
Strong track record of project management
– Jobs Theories is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Jobs Theories digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jobs Theories 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
– Jobs Theories is one of the leading recruiters in the industry. Managers in the A Winning Formula: Disruptive Innovation + Jobs to be Done are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Jobs Theories has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in A Winning Formula: Disruptive Innovation + Jobs to be Done 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.
Highly skilled collaborators
– Jobs Theories 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 A Winning Formula: Disruptive Innovation + Jobs to be Done HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Jobs Theories has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jobs Theories 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.
Low bargaining power of suppliers
– Suppliers of Jobs Theories in the sector have low bargaining power. A Winning Formula: Disruptive Innovation + Jobs to be Done has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jobs Theories to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Jobs Theories has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jobs Theories to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Jobs Theories 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 A Winning Formula: Disruptive Innovation + Jobs to be Done - 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 Jobs Theories
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Jobs Theories does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Jobs Theories 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 Jobs Theories in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Strategy & Execution industry
– A Winning Formula: Disruptive Innovation + Jobs to be Done firm has clearly differentiated products in the market place. This has enabled Jobs Theories to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Jobs Theories to invest into research and development (R&D) and innovation.
Weaknesses A Winning Formula: Disruptive Innovation + Jobs to be Done | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A Winning Formula: Disruptive Innovation + Jobs to be Done are -
Capital Spending Reduction
– Even during the low interest decade, Jobs Theories 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.
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 Jobs Theories supply chain. Even after few cautionary changes mentioned in the HBR case study - A Winning Formula: Disruptive Innovation + Jobs to be Done, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jobs Theories vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Jobs Theories, firm in the HBR case study A Winning Formula: Disruptive Innovation + Jobs to be Done needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Jobs Theories has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to strategic competitive environment developments
– As A Winning Formula: Disruptive Innovation + Jobs to be Done HBR case study mentions - Jobs Theories 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Jobs Theories 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.
Increasing silos among functional specialists
– The organizational structure of Jobs Theories is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Jobs Theories needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jobs Theories to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Jobs Theories 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. Jobs Theories 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Stephen Wunker, David Farber suggests that, Jobs Theories 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.
Aligning sales with marketing
– It come across in the case study A Winning Formula: Disruptive Innovation + Jobs to be Done that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case A Winning Formula: Disruptive Innovation + Jobs to be Done can leverage the sales team experience to cultivate customer relationships as Jobs Theories is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study A Winning Formula: Disruptive Innovation + Jobs to be Done, is just above the industry average. Jobs Theories 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 A Winning Formula: Disruptive Innovation + Jobs to be Done | 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 A Winning Formula: Disruptive Innovation + Jobs to be Done 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 Jobs Theories in the consumer business. Now Jobs Theories can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Jobs Theories 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.
Manufacturing automation
– Jobs Theories 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, Jobs Theories 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jobs Theories is facing challenges because of the dominance of functional experts in the organization. A Winning Formula: Disruptive Innovation + Jobs to be Done 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.
Better consumer reach
– The expansion of the 5G network will help Jobs Theories to increase its market reach. Jobs Theories 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jobs Theories 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 Jobs Theories to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Jobs Theories 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.
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. Jobs Theories 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. Jobs Theories 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.
Using analytics as competitive advantage
– Jobs Theories 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 A Winning Formula: Disruptive Innovation + Jobs to be Done - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jobs Theories to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jobs Theories can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Jobs Theories 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.
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. Jobs Theories can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats A Winning Formula: Disruptive Innovation + Jobs to be Done External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A Winning Formula: Disruptive Innovation + Jobs to be Done are -
Consumer confidence and its impact on Jobs Theories 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.
Technology acceleration in Forth Industrial Revolution
– Jobs Theories has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Jobs Theories needs to keep up with the evolution of technology in the Strategy & Execution 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.
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. Jobs Theories can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jobs Theories 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jobs Theories 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 A Winning Formula: Disruptive Innovation + Jobs to be Done .
Environmental challenges
– Jobs Theories 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. Jobs Theories can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Jobs Theories needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Jobs Theories 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.
Increasing wage structure of Jobs Theories
– 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 Jobs Theories.
Stagnating economy with rate increase
– Jobs Theories 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.
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
– Jobs Theories 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.
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 Jobs Theories.
Weighted SWOT Analysis of A Winning Formula: Disruptive Innovation + Jobs to be Done 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 A Winning Formula: Disruptive Innovation + Jobs to be Done 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 A Winning Formula: Disruptive Innovation + Jobs to be Done 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 A Winning Formula: Disruptive Innovation + Jobs to be Done 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 A Winning Formula: Disruptive Innovation + Jobs to be Done 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 Jobs Theories needs to make to build a sustainable competitive advantage.