Social Networks: The Portals of Web 2.0 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Communication
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Social Networks: The Portals of Web 2.0
Social networks have evolved into influential, compelling and persuasive systems, the portals of Web 2.0 and one of the most powerful media phenomena in 2008. This note provides a brief background and description of various social network sites including MySpace, Facebook, and YouTube. We also discuss recent trends and strategies stemming from the social network phenomena including widgets and online advertising.
Swot Analysis of "Social Networks: The Portals of Web 2.0" written by Stephen P. Bradley, Nancy Bartlett includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Phenomena Portals facing as an external strategic factors. Some of the topics covered in Social Networks: The Portals of Web 2.0 case study are - Strategic Management Strategies, Networking, Strategy and Communication.
Some of the macro environment factors that can be used to understand the Social Networks: The Portals of Web 2.0 casestudy better are - – there is backlash against globalization, increasing transportation and logistics costs, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion,
supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Social Networks: The Portals of Web 2.0
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Social Networks: The Portals of Web 2.0 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Phenomena Portals, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Phenomena Portals 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 Networks: The Portals of Web 2.0 can be done for the following purposes –
1. Strategic planning using facts provided in Social Networks: The Portals of Web 2.0 case study
2. Improving business portfolio management of Phenomena Portals
3. Assessing feasibility of the new initiative in Communication field.
4. Making a Communication topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Phenomena Portals
Strengths Social Networks: The Portals of Web 2.0 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Phenomena Portals in Social Networks: The Portals of Web 2.0 Harvard Business Review case study are -
Learning organization
- Phenomena Portals 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 Phenomena Portals is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Social Networks: The Portals of Web 2.0 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Communication segment
- digital transformation varies from industry to industry. For Phenomena Portals digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Phenomena Portals 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 Phenomena Portals in the sector have low bargaining power. Social Networks: The Portals of Web 2.0 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Phenomena Portals to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Phenomena Portals 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.
Innovation driven organization
– Phenomena Portals is one of the most innovative firm in sector. Manager in Social Networks: The Portals of Web 2.0 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Phenomena Portals is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Communication field
– Phenomena Portals 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 Phenomena Portals in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Social Networks: The Portals of Web 2.0 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.
Training and development
– Phenomena Portals has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Social Networks: The Portals of Web 2.0 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.
Highly skilled collaborators
– Phenomena Portals 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 Networks: The Portals of Web 2.0 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Phenomena Portals is present in almost all the verticals within the industry. This has provided firm in Social Networks: The Portals of Web 2.0 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.
High brand equity
– Phenomena Portals has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Phenomena Portals to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Social Networks: The Portals of Web 2.0 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Social Networks: The Portals of Web 2.0 are -
Slow decision making process
– As mentioned earlier in the report, Phenomena Portals 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. Phenomena Portals 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Social Networks: The Portals of Web 2.0 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 Phenomena Portals has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Phenomena Portals is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Social Networks: The Portals of Web 2.0 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Phenomena Portals 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Phenomena Portals needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Increasing silos among functional specialists
– The organizational structure of Phenomena Portals is dominated by functional specialists. It is not different from other players in the Communication segment. Phenomena Portals needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Phenomena Portals to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Phenomena Portals 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.
Slow to strategic competitive environment developments
– As Social Networks: The Portals of Web 2.0 HBR case study mentions - Phenomena Portals 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.
Lack of clear differentiation of Phenomena Portals products
– To increase the profitability and margins on the products, Phenomena Portals needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Social Networks: The Portals of Web 2.0, in the dynamic environment Phenomena Portals has struggled to respond to the nimble upstart competition. Phenomena Portals has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Phenomena Portals 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.
Opportunities Social Networks: The Portals of Web 2.0 | 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 Networks: The Portals of Web 2.0 are -
Manufacturing automation
– Phenomena Portals can use the latest technology developments to improve its manufacturing and designing process in Communication 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Phenomena Portals 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 Networks: The Portals of Web 2.0, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Phenomena Portals is facing challenges because of the dominance of functional experts in the organization. Social Networks: The Portals of Web 2.0 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.
Buying journey improvements
– Phenomena Portals can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Social Networks: The Portals of Web 2.0 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Phenomena Portals can use these opportunities to build new business models that can help the communities that Phenomena Portals operates in. Secondly it can use opportunities from government spending in Communication sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Communication industry, but it has also influenced the consumer preferences. Phenomena Portals can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Phenomena Portals 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Phenomena Portals 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.
Leveraging digital technologies
– Phenomena Portals 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.
Loyalty marketing
– Phenomena Portals 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.
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 Phenomena Portals 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.
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. Phenomena Portals can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Phenomena Portals in the consumer business. Now Phenomena Portals can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Social Networks: The Portals of Web 2.0 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Social Networks: The Portals of Web 2.0 are -
Environmental challenges
– Phenomena Portals 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. Phenomena Portals can take advantage of this fund but it will also bring new competitors in the Communication industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Phenomena Portals 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 Networks: The Portals of Web 2.0 .
Increasing wage structure of Phenomena Portals
– 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 Phenomena Portals.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Phenomena Portals in the Communication industry. The Communication 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.
Consumer confidence and its impact on Phenomena Portals 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.
High dependence on third party suppliers
– Phenomena Portals 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.
Regulatory challenges
– Phenomena Portals 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 Communication industry regulations.
Technology acceleration in Forth Industrial Revolution
– Phenomena Portals has witnessed rapid integration of technology during Covid-19 in the Communication industry. As one of the leading players in the industry, Phenomena Portals needs to keep up with the evolution of technology in the Communication 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.
Easy access to finance
– Easy access to finance in Communication field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Phenomena Portals 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 Phenomena Portals is facing in Communication sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Phenomena Portals business can come under increasing regulations regarding data privacy, data security, etc.
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 Networks: The Portals of Web 2.0, Phenomena Portals may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communication .
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.
Weighted SWOT Analysis of Social Networks: The Portals of Web 2.0 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 Networks: The Portals of Web 2.0 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 Networks: The Portals of Web 2.0 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 Networks: The Portals of Web 2.0 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 Networks: The Portals of Web 2.0 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 Phenomena Portals needs to make to build a sustainable competitive advantage.
