Swot Analysis of "Institutionalized Entrepreneurship: Flagship Pioneering" written by Hong Luo, Gary P. Pisano, Huafeng Yu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Institutionalized Pioneering facing as an external strategic factors. Some of the topics covered in Institutionalized Entrepreneurship: Flagship Pioneering case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Institutionalized Entrepreneurship: Flagship Pioneering casestudy better are - – supply chains are disrupted by pandemic , there is backlash against globalization, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google,
geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Institutionalized Entrepreneurship: Flagship Pioneering
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Institutionalized Entrepreneurship: Flagship Pioneering case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Institutionalized Pioneering, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Institutionalized Pioneering 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 Institutionalized Entrepreneurship: Flagship Pioneering can be done for the following purposes –
1. Strategic planning using facts provided in Institutionalized Entrepreneurship: Flagship Pioneering case study
2. Improving business portfolio management of Institutionalized Pioneering
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 Institutionalized Pioneering
Strengths Institutionalized Entrepreneurship: Flagship Pioneering | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Institutionalized Pioneering in Institutionalized Entrepreneurship: Flagship Pioneering Harvard Business Review case study are -
Ability to recruit top talent
– Institutionalized Pioneering is one of the leading recruiters in the industry. Managers in the Institutionalized Entrepreneurship: Flagship Pioneering are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Institutionalized Pioneering 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.
Superior customer experience
– The customer experience strategy of Institutionalized Pioneering in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Institutionalized Pioneering 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 Institutionalized Entrepreneurship: Flagship Pioneering - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Institutionalized Entrepreneurship: Flagship Pioneering firm has clearly differentiated products in the market place. This has enabled Institutionalized Pioneering to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Institutionalized Pioneering to invest into research and development (R&D) and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Institutionalized Pioneering digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Institutionalized Pioneering 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 Institutionalized Pioneering in the sector have low bargaining power. Institutionalized Entrepreneurship: Flagship Pioneering has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Institutionalized Pioneering to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Institutionalized Pioneering is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Institutionalized Pioneering 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 Institutionalized Pioneering is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Institutionalized Entrepreneurship: Flagship Pioneering Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Strategy & Execution field
– Institutionalized Pioneering 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 Institutionalized Pioneering in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Institutionalized Pioneering 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.
High brand equity
– Institutionalized Pioneering has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Institutionalized Pioneering to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Institutionalized Entrepreneurship: Flagship Pioneering | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Institutionalized Entrepreneurship: Flagship Pioneering are -
Low market penetration in new markets
– Outside its home market of Institutionalized Pioneering, firm in the HBR case study Institutionalized Entrepreneurship: Flagship Pioneering needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Institutionalized Pioneering products
– To increase the profitability and margins on the products, Institutionalized Pioneering needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Institutionalized Pioneering 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. Institutionalized Pioneering 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.
Increasing silos among functional specialists
– The organizational structure of Institutionalized Pioneering is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Institutionalized Pioneering needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Institutionalized Pioneering to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Institutionalized Entrepreneurship: Flagship Pioneering, in the dynamic environment Institutionalized Pioneering has struggled to respond to the nimble upstart competition. Institutionalized Pioneering has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Institutionalized Pioneering 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 Institutionalized Entrepreneurship: Flagship Pioneering HBR case study mentions - Institutionalized Pioneering 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.
Aligning sales with marketing
– It come across in the case study Institutionalized Entrepreneurship: Flagship Pioneering 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 Institutionalized Entrepreneurship: Flagship Pioneering can leverage the sales team experience to cultivate customer relationships as Institutionalized Pioneering is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Hong Luo, Gary P. Pisano, Huafeng Yu suggests that, Institutionalized Pioneering 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.
Need for greater diversity
– Institutionalized Pioneering 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, Institutionalized Pioneering is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Institutionalized Entrepreneurship: Flagship Pioneering can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Institutionalized Entrepreneurship: Flagship Pioneering | 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 Institutionalized Entrepreneurship: Flagship Pioneering are -
Better consumer reach
– The expansion of the 5G network will help Institutionalized Pioneering to increase its market reach. Institutionalized Pioneering 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Institutionalized Pioneering can use these opportunities to build new business models that can help the communities that Institutionalized Pioneering operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Institutionalized Pioneering is facing challenges because of the dominance of functional experts in the organization. Institutionalized Entrepreneurship: Flagship Pioneering 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Institutionalized Pioneering can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Institutionalized Pioneering 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 Institutionalized Entrepreneurship: Flagship Pioneering - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Institutionalized Pioneering to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Institutionalized Pioneering can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Institutionalized Entrepreneurship: Flagship Pioneering 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.
Manufacturing automation
– Institutionalized Pioneering 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Institutionalized Pioneering 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.
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 Institutionalized Pioneering 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Institutionalized Pioneering 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 Institutionalized Pioneering to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Institutionalized Pioneering has opened avenues for new revenue streams for the organization in the industry. This can help Institutionalized Pioneering to build a more holistic ecosystem as suggested in the Institutionalized Entrepreneurship: Flagship Pioneering case study. Institutionalized Pioneering can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Institutionalized Pioneering 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, Institutionalized Entrepreneurship: Flagship Pioneering, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Institutionalized Pioneering 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.
Threats Institutionalized Entrepreneurship: Flagship Pioneering External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Institutionalized Entrepreneurship: Flagship Pioneering are -
Increasing wage structure of Institutionalized Pioneering
– 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 Institutionalized Pioneering.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Institutionalized Pioneering 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 Institutionalized Entrepreneurship: Flagship Pioneering .
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 Institutionalized Pioneering in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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.
Stagnating economy with rate increase
– Institutionalized Pioneering 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Institutionalized Pioneering 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.
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 Institutionalized Pioneering.
Shortening product life cycle
– it is one of the major threat that Institutionalized Pioneering is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Institutionalized Pioneering has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Institutionalized Pioneering 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.
Consumer confidence and its impact on Institutionalized Pioneering 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. Institutionalized Pioneering 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.
Regulatory challenges
– Institutionalized Pioneering 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.
Weighted SWOT Analysis of Institutionalized Entrepreneurship: Flagship Pioneering 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 Institutionalized Entrepreneurship: Flagship Pioneering 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 Institutionalized Entrepreneurship: Flagship Pioneering 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 Institutionalized Entrepreneurship: Flagship Pioneering 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 Institutionalized Entrepreneurship: Flagship Pioneering 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 Institutionalized Pioneering needs to make to build a sustainable competitive advantage.