Swot Analysis of "$19B 4 txt app WhatsApp...omg! (B)" written by David B. Yoffie, Aakash Mehta includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Whatsapp 19b facing as an external strategic factors. Some of the topics covered in $19B 4 txt app WhatsApp...omg! (B) case study are - Strategic Management Strategies, Strategy, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the $19B 4 txt app WhatsApp...omg! (B) casestudy better are - – cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, increasing energy prices,
increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of $19B 4 txt app WhatsApp...omg! (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in $19B 4 txt app WhatsApp...omg! (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Whatsapp 19b, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Whatsapp 19b 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 $19B 4 txt app WhatsApp...omg! (B) can be done for the following purposes –
1. Strategic planning using facts provided in $19B 4 txt app WhatsApp...omg! (B) case study
2. Improving business portfolio management of Whatsapp 19b
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 Whatsapp 19b
Strengths $19B 4 txt app WhatsApp...omg! (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Whatsapp 19b in $19B 4 txt app WhatsApp...omg! (B) Harvard Business Review case study are -
High brand equity
– Whatsapp 19b has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Whatsapp 19b to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Whatsapp 19b is one of the most innovative firm in sector. Manager in $19B 4 txt app WhatsApp...omg! (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Whatsapp 19b 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 Whatsapp 19b is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in $19B 4 txt app WhatsApp...omg! (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Whatsapp 19b has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in $19B 4 txt app WhatsApp...omg! (B) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Superior customer experience
– The customer experience strategy of Whatsapp 19b in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the $19B 4 txt app WhatsApp...omg! (B) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Organizational Resilience of Whatsapp 19b
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Whatsapp 19b does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Whatsapp 19b 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 $19B 4 txt app WhatsApp...omg! (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– $19B 4 txt app WhatsApp...omg! (B) firm has clearly differentiated products in the market place. This has enabled Whatsapp 19b to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Whatsapp 19b to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Whatsapp 19b has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Whatsapp 19b 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.
Effective Research and Development (R&D)
– Whatsapp 19b 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 $19B 4 txt app WhatsApp...omg! (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Whatsapp 19b is one of the leading recruiters in the industry. Managers in the $19B 4 txt app WhatsApp...omg! (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses $19B 4 txt app WhatsApp...omg! (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of $19B 4 txt app WhatsApp...omg! (B) are -
Increasing silos among functional specialists
– The organizational structure of Whatsapp 19b is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Whatsapp 19b needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Whatsapp 19b to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Whatsapp 19b 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 $19B 4 txt app WhatsApp...omg! (B) HBR case study mentions - Whatsapp 19b 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 Whatsapp 19b products
– To increase the profitability and margins on the products, Whatsapp 19b needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study $19B 4 txt app WhatsApp...omg! (B), in the dynamic environment Whatsapp 19b has struggled to respond to the nimble upstart competition. Whatsapp 19b has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Whatsapp 19b 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Whatsapp 19b is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study $19B 4 txt app WhatsApp...omg! (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Whatsapp 19b supply chain. Even after few cautionary changes mentioned in the HBR case study - $19B 4 txt app WhatsApp...omg! (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Whatsapp 19b vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study $19B 4 txt app WhatsApp...omg! (B) 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 $19B 4 txt app WhatsApp...omg! (B) can leverage the sales team experience to cultivate customer relationships as Whatsapp 19b is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Whatsapp 19b 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. Whatsapp 19b 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Whatsapp 19b 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 $19B 4 txt app WhatsApp...omg! (B) | 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 $19B 4 txt app WhatsApp...omg! (B) are -
Building a culture of innovation
– managers at Whatsapp 19b 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 Strategy & Execution segment.
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 Whatsapp 19b 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.
Better consumer reach
– The expansion of the 5G network will help Whatsapp 19b to increase its market reach. Whatsapp 19b 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Whatsapp 19b 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Whatsapp 19b 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 Whatsapp 19b 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, Whatsapp 19b 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, $19B 4 txt app WhatsApp...omg! (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Whatsapp 19b 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Whatsapp 19b in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Whatsapp 19b 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 $19B 4 txt app WhatsApp...omg! (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Whatsapp 19b to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Whatsapp 19b can develop new processes and procedures in Strategy & Execution 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Whatsapp 19b can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Whatsapp 19b 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Whatsapp 19b can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats $19B 4 txt app WhatsApp...omg! (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study $19B 4 txt app WhatsApp...omg! (B) 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 $19B 4 txt app WhatsApp...omg! (B), Whatsapp 19b may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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.
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 Whatsapp 19b in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Whatsapp 19b 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 $19B 4 txt app WhatsApp...omg! (B) .
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 Whatsapp 19b business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Whatsapp 19b 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. Whatsapp 19b can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Shortening product life cycle
– it is one of the major threat that Whatsapp 19b is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Whatsapp 19b can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Whatsapp 19b 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.
Stagnating economy with rate increase
– Whatsapp 19b 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 acceleration in Forth Industrial Revolution
– Whatsapp 19b has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Whatsapp 19b 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.
High dependence on third party suppliers
– Whatsapp 19b 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 Whatsapp 19b
– 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 Whatsapp 19b.
Weighted SWOT Analysis of $19B 4 txt app WhatsApp...omg! (B) 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 $19B 4 txt app WhatsApp...omg! (B) 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 $19B 4 txt app WhatsApp...omg! (B) 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 $19B 4 txt app WhatsApp...omg! (B) 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 $19B 4 txt app WhatsApp...omg! (B) 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 Whatsapp 19b needs to make to build a sustainable competitive advantage.