Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market
In 2002, the telecom industry in France witnessed changes in regulation of internet service providers. This enabled internet service provider Free.fr to challenge a crystalized competitive landscape using a combination of technology, business model innovation and focus on the bottom of the pyramid. The case describes the market environment, the strategy to the bottom of the pyramid and the impact of this market entry.
Swot Analysis of "Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market" written by Philip Parker, Mathieu Romary includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Free.fr Internet facing as an external strategic factors. Some of the topics covered in Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market case study are - Strategic Management Strategies, Internet, Marketing, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market casestudy better are - – increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, there is increasing trade war between United States & China,
there is backlash against globalization, geopolitical disruptions, etc
Introduction to SWOT Analysis of Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Free.fr Internet, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Free.fr Internet 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 Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market can be done for the following purposes –
1. Strategic planning using facts provided in Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market case study
2. Improving business portfolio management of Free.fr Internet
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 Free.fr Internet
Strengths Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Free.fr Internet in Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market Harvard Business Review case study are -
Ability to recruit top talent
– Free.fr Internet is one of the leading recruiters in the industry. Managers in the Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Free.fr Internet in the sector have low bargaining power. Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Free.fr Internet to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Free.fr Internet 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 Philip Parker, Mathieu Romary 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.
Organizational Resilience of Free.fr Internet
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Free.fr Internet 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
– Free.fr Internet 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 Free.fr Internet in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market 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.
Cross disciplinary teams
– Horizontal connected teams at the Free.fr Internet 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.
High brand equity
– Free.fr Internet has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Free.fr Internet to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Free.fr Internet has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Free.fr Internet 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Free.fr Internet digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Free.fr Internet 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.
Strong track record of project management
– Free.fr Internet is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Free.fr Internet 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.
Weaknesses Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market are -
Products dominated business model
– Even though Free.fr Internet 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 - Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market, in the dynamic environment Free.fr Internet has struggled to respond to the nimble upstart competition. Free.fr Internet has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market 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 Free.fr Internet 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Philip Parker, Mathieu Romary suggests that, Free.fr Internet 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.
Low market penetration in new markets
– Outside its home market of Free.fr Internet, firm in the HBR case study Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Free.fr Internet 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. Free.fr Internet 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, Free.fr Internet 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.
Skills based hiring
– The stress on hiring functional specialists at Free.fr Internet 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.
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 Free.fr Internet supply chain. Even after few cautionary changes mentioned in the HBR case study - Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Free.fr Internet vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Aligning sales with marketing
– It come across in the case study Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market 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 Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market can leverage the sales team experience to cultivate customer relationships as Free.fr Internet is planning to shift buying processes online.
Opportunities Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market | 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 Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Free.fr Internet 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 Free.fr Internet to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Free.fr Internet is facing challenges because of the dominance of functional experts in the organization. Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market 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.
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. Free.fr Internet can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Free.fr Internet can use these opportunities to build new business models that can help the communities that Free.fr Internet operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Free.fr Internet 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 Free.fr Internet to increase its market reach. Free.fr Internet 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 Free.fr Internet 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.
Buying journey improvements
– Free.fr Internet can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market 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.
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 Free.fr Internet in the consumer business. Now Free.fr Internet can target international markets with far fewer capital restrictions requirements than the existing system.
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. Free.fr Internet 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. Free.fr Internet 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.
Creating value in data economy
– The success of analytics program of Free.fr Internet has opened avenues for new revenue streams for the organization in the industry. This can help Free.fr Internet to build a more holistic ecosystem as suggested in the Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market case study. Free.fr Internet can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Free.fr Internet 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Free.fr Internet 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.
Threats Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market are -
Environmental challenges
– Free.fr Internet 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. Free.fr Internet can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Increasing wage structure of Free.fr Internet
– 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 Free.fr Internet.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Free.fr Internet 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.
Regulatory challenges
– Free.fr Internet 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 Free.fr Internet.
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.
Shortening product life cycle
– it is one of the major threat that Free.fr Internet is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market, Free.fr Internet 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 acceleration in Forth Industrial Revolution
– Free.fr Internet has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Free.fr Internet 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.
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 Free.fr Internet in the Strategy & Execution sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Free.fr Internet with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Free.fr Internet demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Free.fr Internet 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 Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market 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 Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market 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 Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market 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 Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market 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 Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market 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 Free.fr Internet needs to make to build a sustainable competitive advantage.