Crowdfunding in Europe: Determinants of Platform Creation across Countries SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Crowdfunding in Europe: Determinants of Platform Creation across Countries
While the crowdfunding phenomenon has attracted considerable practitioner and scholarly attention, existing research predominantly reflects a U.S.-centric perspective. This article examines crowdfunding platform creation in 15 European countries. Despite the omnipresent reach of the internet, national boundaries shape the evolution of the European crowdfunding industry. Specifically, crowdfunding platform creation varies across countries and distinct national patterns emerge for crowdfunding activity in general. Moreover, econometric analyses suggest that country-level factors influence platform creation in European countries, with interesting variations across four crowdfunding models: Donation, Reward, Lending, and Equity.
Authors :: Gary Dushnitsky, Massimiliano Guerini, Evila Piva, Cristina Rossi-Lamastra
Swot Analysis of "Crowdfunding in Europe: Determinants of Platform Creation across Countries" written by Gary Dushnitsky, Massimiliano Guerini, Evila Piva, Cristina Rossi-Lamastra includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Crowdfunding Creation facing as an external strategic factors. Some of the topics covered in Crowdfunding in Europe: Determinants of Platform Creation across Countries case study are - Strategic Management Strategies, Internet and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Crowdfunding in Europe: Determinants of Platform Creation across Countries casestudy better are - – increasing government debt because of Covid-19 spendings, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, there is backlash against globalization, supply chains are disrupted by pandemic , increasing commodity prices,
increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Crowdfunding in Europe: Determinants of Platform Creation across Countries
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Crowdfunding in Europe: Determinants of Platform Creation across Countries case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Crowdfunding Creation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Crowdfunding Creation 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 Crowdfunding in Europe: Determinants of Platform Creation across Countries can be done for the following purposes –
1. Strategic planning using facts provided in Crowdfunding in Europe: Determinants of Platform Creation across Countries case study
2. Improving business portfolio management of Crowdfunding Creation
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Crowdfunding Creation
Strengths Crowdfunding in Europe: Determinants of Platform Creation across Countries | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Crowdfunding Creation in Crowdfunding in Europe: Determinants of Platform Creation across Countries Harvard Business Review case study are -
Innovation driven organization
– Crowdfunding Creation is one of the most innovative firm in sector. Manager in Crowdfunding in Europe: Determinants of Platform Creation across Countries Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Crowdfunding Creation has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Crowdfunding Creation 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
– Crowdfunding Creation 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 Gary Dushnitsky, Massimiliano Guerini, Evila Piva, Cristina Rossi-Lamastra 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 Finance & Accounting segment
- digital transformation varies from industry to industry. For Crowdfunding Creation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Crowdfunding Creation 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.
Learning organization
- Crowdfunding Creation 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 Crowdfunding Creation is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Crowdfunding in Europe: Determinants of Platform Creation across Countries Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Finance & Accounting industry
– Crowdfunding in Europe: Determinants of Platform Creation across Countries firm has clearly differentiated products in the market place. This has enabled Crowdfunding Creation to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Crowdfunding Creation to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Crowdfunding Creation is one of the leading recruiters in the industry. Managers in the Crowdfunding in Europe: Determinants of Platform Creation across Countries are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Crowdfunding Creation 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 Crowdfunding in Europe: Determinants of Platform Creation across Countries HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Finance & Accounting field
– Crowdfunding Creation 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 Crowdfunding Creation in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Crowdfunding Creation in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Crowdfunding Creation in the sector have low bargaining power. Crowdfunding in Europe: Determinants of Platform Creation across Countries has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Crowdfunding Creation to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Crowdfunding Creation has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Crowdfunding in Europe: Determinants of Platform Creation across Countries 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.
Weaknesses Crowdfunding in Europe: Determinants of Platform Creation across Countries | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Crowdfunding in Europe: Determinants of Platform Creation across Countries are -
Slow decision making process
– As mentioned earlier in the report, Crowdfunding Creation 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. Crowdfunding Creation 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.
Slow to strategic competitive environment developments
– As Crowdfunding in Europe: Determinants of Platform Creation across Countries HBR case study mentions - Crowdfunding Creation 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Crowdfunding in Europe: Determinants of Platform Creation across Countries 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 Crowdfunding Creation has relatively successful track record of launching new products.
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 Crowdfunding Creation supply chain. Even after few cautionary changes mentioned in the HBR case study - Crowdfunding in Europe: Determinants of Platform Creation across Countries, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Crowdfunding Creation vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Crowdfunding in Europe: Determinants of Platform Creation across Countries, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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 Crowdfunding Creation, firm in the HBR case study Crowdfunding in Europe: Determinants of Platform Creation across Countries needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Crowdfunding Creation 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Crowdfunding in Europe: Determinants of Platform Creation across Countries 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 Crowdfunding Creation 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Crowdfunding in Europe: Determinants of Platform Creation across Countries 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 Crowdfunding in Europe: Determinants of Platform Creation across Countries can leverage the sales team experience to cultivate customer relationships as Crowdfunding Creation is planning to shift buying processes online.
Products dominated business model
– Even though Crowdfunding Creation 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 - Crowdfunding in Europe: Determinants of Platform Creation across Countries should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Gary Dushnitsky, Massimiliano Guerini, Evila Piva, Cristina Rossi-Lamastra suggests that, Crowdfunding Creation 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.
Opportunities Crowdfunding in Europe: Determinants of Platform Creation across Countries | 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 Crowdfunding in Europe: Determinants of Platform Creation across Countries are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Crowdfunding Creation 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, Crowdfunding in Europe: Determinants of Platform Creation across Countries, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Crowdfunding Creation can develop new processes and procedures in Finance & Accounting 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Crowdfunding Creation 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 Crowdfunding Creation to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Crowdfunding Creation 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 Finance & Accounting segment.
Creating value in data economy
– The success of analytics program of Crowdfunding Creation has opened avenues for new revenue streams for the organization in the industry. This can help Crowdfunding Creation to build a more holistic ecosystem as suggested in the Crowdfunding in Europe: Determinants of Platform Creation across Countries case study. Crowdfunding Creation can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Crowdfunding Creation can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Crowdfunding Creation 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 Crowdfunding in Europe: Determinants of Platform Creation across Countries - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Crowdfunding Creation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Crowdfunding Creation can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Crowdfunding Creation can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Crowdfunding in Europe: Determinants of Platform Creation across Countries 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
– Crowdfunding Creation can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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 Crowdfunding Creation to increase its market reach. Crowdfunding Creation 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Crowdfunding Creation can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Crowdfunding Creation 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.
Threats Crowdfunding in Europe: Determinants of Platform Creation across Countries External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Crowdfunding in Europe: Determinants of Platform Creation across Countries are -
Increasing wage structure of Crowdfunding Creation
– 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 Crowdfunding Creation.
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 Crowdfunding Creation in the Finance & Accounting sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Crowdfunding Creation is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Crowdfunding Creation.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Crowdfunding Creation can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Crowdfunding Creation 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 Crowdfunding in Europe: Determinants of Platform Creation across Countries .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Crowdfunding in Europe: Determinants of Platform Creation across Countries, Crowdfunding Creation may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Crowdfunding Creation in the Finance & Accounting industry. The Finance & Accounting 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.
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.
Regulatory challenges
– Crowdfunding Creation 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 Finance & Accounting industry regulations.
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. Crowdfunding Creation 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.
Consumer confidence and its impact on Crowdfunding Creation 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.
Technology acceleration in Forth Industrial Revolution
– Crowdfunding Creation has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Crowdfunding Creation needs to keep up with the evolution of technology in the Finance & Accounting 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.
Weighted SWOT Analysis of Crowdfunding in Europe: Determinants of Platform Creation across Countries 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 Crowdfunding in Europe: Determinants of Platform Creation across Countries 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 Crowdfunding in Europe: Determinants of Platform Creation across Countries 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 Crowdfunding in Europe: Determinants of Platform Creation across Countries 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 Crowdfunding in Europe: Determinants of Platform Creation across Countries 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 Crowdfunding Creation needs to make to build a sustainable competitive advantage.
