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 - – technology disruption, increasing transportation and logistics costs, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion,
challanges to central banks by blockchain based private currencies, there is backlash against globalization, 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 -
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.
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.
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.
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.
Superior customer experience
– The customer experience strategy of Free.fr Internet in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
Lack of clear differentiation of Free.fr Internet products
– To increase the profitability and margins on the products, Free.fr Internet 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 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.
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.
Slow to strategic competitive environment developments
– As Free.fr - Internet for the BOP in France (A): The Fixed-line Internet Market HBR case study mentions - Free.fr Internet 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.
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.
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.
Increasing silos among functional specialists
– The organizational structure of Free.fr Internet is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Free.fr Internet needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Free.fr Internet to focus more on services rather than just following the product oriented approach.
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 -
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.
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.
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.
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.
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.
Loyalty marketing
– Free.fr Internet 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.
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.
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.
Building a culture of innovation
– managers at Free.fr Internet 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.
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.
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.
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.
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.
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 -
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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing wage structure of 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.
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.
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.
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.
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 Free.fr Internet business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
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.
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 .
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. Free.fr Internet needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
