The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark
Technological transitions are challenging, particularly for companies in mature industries. Incumbents are frequently blindsided by new technologies, thereby missing opportunities to enter emerging markets early. While some established companies become early adopters of new technologies, the authors argue that they typically lack the vision and the commitment to become leaders. Too often, they cling to the familiar, developing "hybrid"products that combine elements of the old and the new.This puts even the best incumbent companies in a weak position when the market finally embraces the new technology, something the authors call the "hybrid trap." This article takes a close look at the auto industry's transition from internal combustion engines to electric vehicles (EVs) and compares it to precedents in other industries. Several incumbent automakers, such as General Motors Co. and Honda Motor Co. Ltd., entered the EV market early, but they backed away from these projects in favor of continued emphasis on established engine technology. Gradually, most of them focused on hybrid cars that combined old and new technologies. This opened the door to new competitors, notably Tesla Inc., which focused solely on the EV technology. By mid-2017, nearly every old-line engine producer was playing catch-up on EV technology, working to release new electric models in the next two to five years. Although it is too early to know if Tesla will be successful in the long run, the Tesla example, in the authors'view, points to a fundamental weakness in how incumbents respond to industry transformations. In the 1960s, U.S. electronics companies responded to the introduction of Japanese transistor radios by developing products that blended transistor technology with traditional vacuum tubes. In the early 1990s, Kodak Ltd. tried to sell a "film-based digital imaging"product, which merged film photography and digital technology. And a decade ago, BlackBerry Ltd. tried to respond to the challenge of the iPhone by releasing a phone that had both a touchscreen display (like the iPhone) and a traditional keyboard (like earlier BlackBerry phones). The answer for incumbents, the authors write, isn't to walk away from products based on the old technology and jump headlong into the new. But they need to take precautions so that the company's legacy operations don't hamper their ability to pursue new technology. New technologies can open opportunities that extend well beyond the scope of legacy products. But such opportunities can be accessed only by companies that are willing to view the world through the lens of the new technology.
Authors :: Fernando F. Suarez, James M. Utterback, Paul von Gruben, Hye Young Kang
Swot Analysis of "The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark" written by Fernando F. Suarez, James M. Utterback, Paul von Gruben, Hye Young Kang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Technology Ev facing as an external strategic factors. Some of the topics covered in The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, technology disruption, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China,
digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Technology Ev, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Technology Ev 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 The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark can be done for the following purposes –
1. Strategic planning using facts provided in The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark case study
2. Improving business portfolio management of Technology Ev
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Technology Ev
Strengths The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Technology Ev in The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark Harvard Business Review case study are -
Effective Research and Development (R&D)
– Technology Ev 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 The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Technology Ev in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Technology Ev has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Technology Ev to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Technology Ev 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.
Low bargaining power of suppliers
– Suppliers of Technology Ev in the sector have low bargaining power. The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Technology Ev to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Technology Ev 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 Fernando F. Suarez, James M. Utterback, Paul von Gruben, Hye Young Kang 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.
Sustainable margins compare to other players in Technology & Operations industry
– The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark firm has clearly differentiated products in the market place. This has enabled Technology Ev to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Technology Ev to invest into research and development (R&D) and innovation.
Learning organization
- Technology Ev 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 Technology Ev is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Technology Ev 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 The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Technology & Operations field
– Technology Ev 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 Technology Ev in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Technology Ev has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Technology Ev 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.
Training and development
– Technology Ev has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark 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.
Weaknesses The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark are -
Interest costs
– Compare to the competition, Technology Ev 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark 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 Technology Ev has relatively successful track record of launching new products.
High cash cycle compare to competitors
Technology Ev 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.
Slow to strategic competitive environment developments
– As The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark HBR case study mentions - Technology Ev 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.
Low market penetration in new markets
– Outside its home market of Technology Ev, firm in the HBR case study The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Fernando F. Suarez, James M. Utterback, Paul von Gruben, Hye Young Kang suggests that, Technology Ev 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark, it seems that the employees of Technology Ev don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark, is just above the industry average. Technology Ev 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.
Need for greater diversity
– Technology Ev 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.
Aligning sales with marketing
– It come across in the case study The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark 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 The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark can leverage the sales team experience to cultivate customer relationships as Technology Ev is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Technology Ev 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.
Opportunities The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark | 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 The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark are -
Manufacturing automation
– Technology Ev can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Building a culture of innovation
– managers at Technology Ev 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 Technology & Operations segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Technology Ev 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 Technology Ev to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Technology Ev 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, The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Technology Ev can use these opportunities to build new business models that can help the communities that Technology Ev operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Creating value in data economy
– The success of analytics program of Technology Ev has opened avenues for new revenue streams for the organization in the industry. This can help Technology Ev to build a more holistic ecosystem as suggested in the The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark case study. Technology Ev can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Technology Ev can develop new processes and procedures in Technology & Operations 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Technology Ev 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Technology Ev can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Technology Ev to increase its market reach. Technology Ev will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Technology Ev can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Technology Ev 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.
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 Technology Ev in the consumer business. Now Technology Ev can target international markets with far fewer capital restrictions requirements than the existing system.
Threats The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark are -
Environmental challenges
– Technology Ev 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. Technology Ev can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
High dependence on third party suppliers
– Technology Ev 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.
Technology acceleration in Forth Industrial Revolution
– Technology Ev has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Technology Ev needs to keep up with the evolution of technology in the Technology & Operations 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.
Regulatory challenges
– Technology Ev 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 Technology & Operations industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Technology Ev 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 The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark .
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Technology Ev can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Technology Ev.
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. Technology Ev needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark, Technology Ev may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Consumer confidence and its impact on Technology Ev 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.
Shortening product life cycle
– it is one of the major threat that Technology Ev is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Technology Ev with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Technology Ev 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.
Weighted SWOT Analysis of The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark 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 The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark 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 The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark 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 The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark 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 The Hybrid Trap: Why Most Efforts to Bridge Old and New Technology Miss the Mark 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 Technology Ev needs to make to build a sustainable competitive advantage.
