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 commodity prices, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs,
challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , 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 -
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.
Superior customer experience
– The customer experience strategy of Social Entrepreneurs in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Social Entrepreneurs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Social Entrepreneurs: Correcting Market Failure (Video) DVD 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.
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.
Innovation driven organization
– Social Entrepreneurs is one of the most innovative firm in sector. Manager in Social Entrepreneurs: Correcting Market Failure (Video) DVD Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Social Entrepreneurs 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 Social Entrepreneurs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Social Entrepreneurs: Correcting Market Failure (Video) DVD Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Social Entrepreneurs in the sector have low bargaining power. Social Entrepreneurs: Correcting Market Failure (Video) DVD has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Social Entrepreneurs to manage not only supply disruptions but also source products at highly competitive prices.
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.
Cross disciplinary teams
– Horizontal connected teams at the Social Entrepreneurs 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.
Analytics focus
– Social Entrepreneurs 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 James Phills 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.
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.
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.
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 -
Aligning sales with marketing
– It come across in the case study Social Entrepreneurs: Correcting Market Failure (Video) DVD 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 Social Entrepreneurs: Correcting Market Failure (Video) DVD can leverage the sales team experience to cultivate customer relationships as Social Entrepreneurs is planning to shift buying processes online.
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.
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.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Social Entrepreneurs 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. Social Entrepreneurs 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.
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.
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 cash cycle compare to competitors
Social Entrepreneurs 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 bargaining power of channel partners
– Because of the regulatory requirements, James Phills suggests that, Social Entrepreneurs 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Social Entrepreneurs is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Social Entrepreneurs: Correcting Market Failure (Video) DVD 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 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 -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Social Entrepreneurs 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, Social Entrepreneurs: Correcting Market Failure (Video) DVD, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Social Entrepreneurs 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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Social Entrepreneurs can use these opportunities to build new business models that can help the communities that Social Entrepreneurs operates in. Secondly it can use opportunities from government spending in Global Business sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Social Entrepreneurs is facing challenges because of the dominance of functional experts in the organization. Social Entrepreneurs: Correcting Market Failure (Video) DVD 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.
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.
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Social Entrepreneurs in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Social Entrepreneurs 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 Social Entrepreneurs to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Social Entrepreneurs can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
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 -
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.
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 Social Entrepreneurs.
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.
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 .
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.
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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Easy access to finance
– Easy access to finance in 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.
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.
Stagnating economy with rate increase
– Social Entrepreneurs 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Social Entrepreneurs in the Global Business industry. The Global Business 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Social Entrepreneurs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
