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 - – cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, increasing energy prices, geopolitical disruptions,
there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, 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 -
Highly skilled collaborators
– Free.fr Internet 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 Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Free.fr Internet 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 Free.fr Internet is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Strategy & Execution industry
– Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market firm has clearly differentiated products in the market place. This has enabled Free.fr Internet to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Free.fr Internet to invest into research and development (R&D) and innovation.
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.
Effective Research and Development (R&D)
– Free.fr Internet 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 Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
Diverse revenue streams
– Free.fr Internet is present in almost all the verticals within the industry. This has provided firm in Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Training and development
– Free.fr Internet has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market 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.
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.
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.
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.
Innovation driven organization
– Free.fr Internet is one of the most innovative firm in sector. Manager in Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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 -
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market, is just above the industry average. Free.fr Internet 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.
Interest costs
– Compare to the competition, Free.fr Internet 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.
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.
Capital Spending Reduction
– Even during the low interest decade, Free.fr Internet 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market, it seems that the employees of Free.fr Internet 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market 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 Free.fr Internet has relatively successful track record of launching new products.
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.
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.
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.
Need for greater diversity
– Free.fr Internet 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.
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 -
Developing new processes and practices
– Free.fr Internet 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Free.fr Internet 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, Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Free.fr Internet can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Free.fr Internet can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
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.
Using analytics as competitive advantage
– Free.fr Internet 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 Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Free.fr Internet to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Free.fr Internet to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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.
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 -
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 .
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.
High dependence on third party suppliers
– Free.fr Internet 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.
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.
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.
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.
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.
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.
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. Free.fr Internet can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Free.fr Internet 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
– 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.
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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Free.fr Internet 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 Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market .
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.