Mobike: A Smart Bike-Sharing Service Platform SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mobike: A Smart Bike-Sharing Service Platform
In 2017, bike sharing was one of the hottest technology trends in China. Since its inception two years earlier, Mobike had quickly become one of China's leading bike on-demand companies because of its bicycles' superior quality, and the company's intelligence capability, open innovation, alliance strategies, and big data applications. Mobike expanded aggressively to take advantage of opportunities in this emerging market and the need for efficient, green, and sustainable solutions to short-distance urban transportation. However, Mobike's aggressive expansion faced tough challenges, including shared bicycle operations and management, competition from rivals, and government regulations. By late 2017, several bike-sharing services had gone bankrupt. How could Mobike avoid the same fate, generate profit, and continue to prosper? The authors Guijie Qi and Jiali Chen are affiliated with Shandong University. John Zhang is affiliated with Arizona State University.
Swot Analysis of "Mobike: A Smart Bike-Sharing Service Platform" written by Guijie Qi, Jiali Chen, John Zhang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mobike Bike facing as an external strategic factors. Some of the topics covered in Mobike: A Smart Bike-Sharing Service Platform case study are - Strategic Management Strategies, Strategy and Global Business.
Some of the macro environment factors that can be used to understand the Mobike: A Smart Bike-Sharing Service Platform casestudy better are - – central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices,
geopolitical disruptions, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Mobike: A Smart Bike-Sharing Service Platform
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mobike: A Smart Bike-Sharing Service Platform case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mobike Bike, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mobike Bike 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 Mobike: A Smart Bike-Sharing Service Platform can be done for the following purposes –
1. Strategic planning using facts provided in Mobike: A Smart Bike-Sharing Service Platform case study
2. Improving business portfolio management of Mobike Bike
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mobike Bike
Strengths Mobike: A Smart Bike-Sharing Service Platform | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mobike Bike in Mobike: A Smart Bike-Sharing Service Platform Harvard Business Review case study are -
Organizational Resilience of Mobike Bike
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mobike Bike does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Mobike Bike in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Mobike Bike is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Mobike Bike 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 Mobike: A Smart Bike-Sharing Service Platform - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Mobike Bike 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.
Training and development
– Mobike Bike has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mobike: A Smart Bike-Sharing Service Platform 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.
Innovation driven organization
– Mobike Bike is one of the most innovative firm in sector. Manager in Mobike: A Smart Bike-Sharing Service Platform Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Mobike Bike 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 Guijie Qi, Jiali Chen, John Zhang 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.
Low bargaining power of suppliers
– Suppliers of Mobike Bike in the sector have low bargaining power. Mobike: A Smart Bike-Sharing Service Platform has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mobike Bike to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Mobike Bike 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.
Successful track record of launching new products
– Mobike Bike has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mobike Bike 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.
High brand equity
– Mobike Bike has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mobike Bike to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Mobike: A Smart Bike-Sharing Service Platform | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mobike: A Smart Bike-Sharing Service Platform are -
Lack of clear differentiation of Mobike Bike products
– To increase the profitability and margins on the products, Mobike Bike needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Mobike Bike, firm in the HBR case study Mobike: A Smart Bike-Sharing Service Platform needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Mobike: A Smart Bike-Sharing Service Platform 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 Mobike Bike 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Mobike: A Smart Bike-Sharing Service Platform, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Skills based hiring
– The stress on hiring functional specialists at Mobike Bike 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.
Capital Spending Reduction
– Even during the low interest decade, Mobike Bike 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mobike: A Smart Bike-Sharing Service Platform, in the dynamic environment Mobike Bike has struggled to respond to the nimble upstart competition. Mobike Bike has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Mobike Bike is dominated by functional specialists. It is not different from other players in the Global Business segment. Mobike Bike needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mobike Bike to focus more on services rather than just following the product oriented approach.
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 Mobike Bike supply chain. Even after few cautionary changes mentioned in the HBR case study - Mobike: A Smart Bike-Sharing Service Platform, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mobike Bike vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Mobike Bike 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 - Mobike: A Smart Bike-Sharing Service Platform should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Mobike: A Smart Bike-Sharing Service Platform HBR case study mentions - Mobike Bike 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.
Opportunities Mobike: A Smart Bike-Sharing Service Platform | 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 Mobike: A Smart Bike-Sharing Service Platform are -
Creating value in data economy
– The success of analytics program of Mobike Bike has opened avenues for new revenue streams for the organization in the industry. This can help Mobike Bike to build a more holistic ecosystem as suggested in the Mobike: A Smart Bike-Sharing Service Platform case study. Mobike Bike can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Mobike Bike can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mobike: A Smart Bike-Sharing Service Platform 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.
Building a culture of innovation
– managers at Mobike Bike 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 Global Business segment.
Developing new processes and practices
– Mobike Bike can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mobike Bike 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, Mobike: A Smart Bike-Sharing Service Platform, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mobike Bike is facing challenges because of the dominance of functional experts in the organization. Mobike: A Smart Bike-Sharing Service Platform 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mobike Bike in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Mobike Bike can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Mobike Bike can use the latest technology developments to improve its manufacturing and designing process in Global Business 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, Mobike Bike 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.
Better consumer reach
– The expansion of the 5G network will help Mobike Bike to increase its market reach. Mobike Bike 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.
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 Mobike Bike 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.
Loyalty marketing
– Mobike Bike 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 Mobike: A Smart Bike-Sharing Service Platform External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mobike: A Smart Bike-Sharing Service Platform are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mobike: A Smart Bike-Sharing Service Platform, Mobike Bike may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mobike Bike with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Mobike Bike needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing wage structure of Mobike Bike
– 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 Mobike Bike.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mobike Bike 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 Mobike: A Smart Bike-Sharing Service Platform .
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 Mobike Bike.
High dependence on third party suppliers
– Mobike Bike 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mobike Bike in the Global Business industry. The Global Business 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.
Regulatory challenges
– Mobike Bike 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 Global Business industry regulations.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mobike Bike can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Mobike Bike in the Global Business sector and impact the bottomline of the organization.
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 Mobike Bike business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Mobike: A Smart Bike-Sharing Service Platform 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 Mobike: A Smart Bike-Sharing Service Platform 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 Mobike: A Smart Bike-Sharing Service Platform 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 Mobike: A Smart Bike-Sharing Service Platform 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 Mobike: A Smart Bike-Sharing Service Platform 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 Mobike Bike needs to make to build a sustainable competitive advantage.
