Social Entrepreneurs: Correcting Market Failure (Video) DVD SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Social Entrepreneurs: Correcting Market Failure (Video) DVD
When important social problems are not solved or social needs go unmet due to neglect or inaction in the private sector, even though the technological, financial, and human means exist to address these problems or needs, economists call this a "market failure." This videocase details the efforts of three "social entrepreneurs" who brought innovative ideas, used entrepreneurial skills, and leveraged market principles to "correct" these market failures. It also highlights one important difference between them and traditional entrepreneurs-they prioritized social impact over the wealth creation. By emphasizing social returns, these "social entrepreneurs" have been serving the needs of poor, disadvantaged, and neglected communities. The entrepreneurs showcased are: (1) Jim Fruchterman, Benetech, who created technology-based projects such as reading machines for the blind; (2) David Green, Project Impact, who developed an innovative approach to manufacturing low-cost, high-quality medical supplies to treat and prevent blindness and deafness in the developing world; (3) Victoria Hale, OneWorld Health, who worked to develop new medicines for infectious diseases that killed millions of people in the poorest parts of the world. The three discuss how they launched their organizations and how their alternative "business models" work. The videocase includes supplemental sections on the challenge of product distribution and their reflections on the experience of being a social entrepreneur.
Authors :: James Phills
Topics :: Global Business
Tags :: Innovation, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Social Entrepreneurs: Correcting Market Failure (Video) DVD" written by James Phills includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Social Entrepreneurs facing as an external strategic factors. Some of the topics covered in Social Entrepreneurs: Correcting Market Failure (Video) DVD case study are - Strategic Management Strategies, Innovation, Social enterprise, Social responsibility and Global Business.
Some of the macro environment factors that can be used to understand the Social Entrepreneurs: Correcting Market Failure (Video) DVD casestudy better are - – increasing household debt because of falling income levels, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, geopolitical disruptions, there is increasing trade war between United States & China,
increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Social Entrepreneurs: Correcting Market Failure (Video) DVD
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Social Entrepreneurs: Correcting Market Failure (Video) DVD case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Social Entrepreneurs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Social Entrepreneurs 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD can be done for the following purposes –
1. Strategic planning using facts provided in Social Entrepreneurs: Correcting Market Failure (Video) DVD case study
2. Improving business portfolio management of Social Entrepreneurs
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Social Entrepreneurs
Strengths Social Entrepreneurs: Correcting Market Failure (Video) DVD | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Social Entrepreneurs in Social Entrepreneurs: Correcting Market Failure (Video) DVD Harvard Business Review case study are -
Successful track record of launching new products
– Social Entrepreneurs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Social Entrepreneurs 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.
Effective Research and Development (R&D)
– Social Entrepreneurs 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Social Entrepreneurs
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Social Entrepreneurs does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Social Entrepreneurs: Correcting Market Failure (Video) DVD Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Diverse revenue streams
– Social Entrepreneurs is present in almost all the verticals within the industry. This has provided firm in Social Entrepreneurs: Correcting Market Failure (Video) DVD 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Social Entrepreneurs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Social Entrepreneurs 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 Social Entrepreneurs 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.
Highly skilled collaborators
– Social Entrepreneurs 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Social Entrepreneurs has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Social Entrepreneurs to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Global Business field
– Social Entrepreneurs 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 Social Entrepreneurs in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Global Business industry
– Social Entrepreneurs: Correcting Market Failure (Video) DVD firm has clearly differentiated products in the market place. This has enabled Social Entrepreneurs to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Social Entrepreneurs to invest into research and development (R&D) and innovation.
Strong track record of project management
– Social Entrepreneurs 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Social Entrepreneurs: Correcting Market Failure (Video) DVD are -
Capital Spending Reduction
– Even during the low interest decade, Social Entrepreneurs 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.
Skills based hiring
– The stress on hiring functional specialists at Social Entrepreneurs 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.
No frontier risks strategy
– After analyzing the HBR case study Social Entrepreneurs: Correcting Market Failure (Video) DVD, it seems that company is thinking about the frontier risks that can impact Global Business 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD, is just above the industry average. Social Entrepreneurs 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Social Entrepreneurs: Correcting Market Failure (Video) DVD, it seems that the employees of Social Entrepreneurs 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.
Products dominated business model
– Even though Social Entrepreneurs 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 - Social Entrepreneurs: Correcting Market Failure (Video) DVD should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Social Entrepreneurs, firm in the HBR case study Social Entrepreneurs: Correcting Market Failure (Video) DVD needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Social Entrepreneurs supply chain. Even after few cautionary changes mentioned in the HBR case study - Social Entrepreneurs: Correcting Market Failure (Video) DVD, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Social Entrepreneurs vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Social Entrepreneurs: Correcting Market Failure (Video) DVD, in the dynamic environment Social Entrepreneurs has struggled to respond to the nimble upstart competition. Social Entrepreneurs has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Social Entrepreneurs: Correcting Market Failure (Video) DVD HBR case study mentions - Social Entrepreneurs 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 operating costs
– Compare to the competitors, firm in the HBR case study Social Entrepreneurs: Correcting Market Failure (Video) DVD 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 Social Entrepreneurs 's lucrative customers.
Opportunities Social Entrepreneurs: Correcting Market Failure (Video) DVD | 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD are -
Buying journey improvements
– Social Entrepreneurs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Social Entrepreneurs: Correcting Market Failure (Video) DVD suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Social Entrepreneurs in the consumer business. Now Social Entrepreneurs can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Social Entrepreneurs 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.
Creating value in data economy
– The success of analytics program of Social Entrepreneurs has opened avenues for new revenue streams for the organization in the industry. This can help Social Entrepreneurs to build a more holistic ecosystem as suggested in the Social Entrepreneurs: Correcting Market Failure (Video) DVD case study. Social Entrepreneurs can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Social Entrepreneurs 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.
Developing new processes and practices
– Social Entrepreneurs can develop new processes and procedures in Global Business 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Social Entrepreneurs 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
– Social Entrepreneurs 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Social Entrepreneurs to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Social Entrepreneurs can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Social Entrepreneurs can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Learning at scale
– Online learning technologies has now opened space for Social Entrepreneurs 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.
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. Social Entrepreneurs can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Social Entrepreneurs 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.
Building a culture of innovation
– managers at Social Entrepreneurs 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 Global Business segment.
Threats Social Entrepreneurs: Correcting Market Failure (Video) DVD External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Social Entrepreneurs: Correcting Market Failure (Video) DVD are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Social Entrepreneurs 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD .
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Social Entrepreneurs can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Social Entrepreneurs: Correcting Market Failure (Video) DVD, Social Entrepreneurs may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
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.
Consumer confidence and its impact on Social Entrepreneurs 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.
Regulatory challenges
– Social Entrepreneurs 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 Global Business industry regulations.
High dependence on third party suppliers
– Social Entrepreneurs 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.
Technology acceleration in Forth Industrial Revolution
– Social Entrepreneurs has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Social Entrepreneurs needs to keep up with the evolution of technology in the Global Business 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.
Environmental challenges
– Social Entrepreneurs 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. Social Entrepreneurs can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Shortening product life cycle
– it is one of the major threat that Social Entrepreneurs is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Social Entrepreneurs needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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. Social Entrepreneurs will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Social Entrepreneurs: Correcting Market Failure (Video) DVD 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD 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 Social Entrepreneurs needs to make to build a sustainable competitive advantage.