Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications
Can deregulation and the unleashing of competitive forces be combined with continued social obligations such as a duty to serve? This note uses the experience of U.S. telecommunications to illustrate the existence and influence of social obligations. Recognizing these obligations enhances understanding of the dynamics of deregulation. Finishes with a discussion of recent issues in telecom deregulation and how social obligations continue to play a part in determining regulatory responses. Focuses exclusively on telecommunications, although the same points--that social obligations exist in regulated industries and that finding a way to continue to address these obligations in a more competitive environment is a major element of regulatory reforms--apply to many other regulated industries.
Swot Analysis of "Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications" written by Alexander Dyck, Indra A. Reinbergs includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Obligations Deregulation facing as an external strategic factors. Some of the topics covered in Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications case study are - Strategic Management Strategies, Social responsibility and Global Business.
Some of the macro environment factors that can be used to understand the Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, there is backlash against globalization, wage bills are increasing, supply chains are disrupted by pandemic , increasing energy prices, increasing government debt because of Covid-19 spendings,
technology disruption, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Obligations Deregulation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Obligations Deregulation 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 Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications can be done for the following purposes –
1. Strategic planning using facts provided in Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications case study
2. Improving business portfolio management of Obligations Deregulation
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 Obligations Deregulation
Strengths Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Obligations Deregulation in Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications Harvard Business Review case study are -
Learning organization
- Obligations Deregulation 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 Obligations Deregulation is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Obligations Deregulation 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 Alexander Dyck, Indra A. Reinbergs 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 Global Business segment
- digital transformation varies from industry to industry. For Obligations Deregulation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Obligations Deregulation 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.
Sustainable margins compare to other players in Global Business industry
– Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications firm has clearly differentiated products in the market place. This has enabled Obligations Deregulation to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Obligations Deregulation to invest into research and development (R&D) and innovation.
Organizational Resilience of Obligations Deregulation
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Obligations Deregulation does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Obligations Deregulation is one of the leading recruiters in the industry. Managers in the Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Obligations Deregulation 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.
Training and development
– Obligations Deregulation has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications 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.
Successful track record of launching new products
– Obligations Deregulation has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Obligations Deregulation 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.
Diverse revenue streams
– Obligations Deregulation is present in almost all the verticals within the industry. This has provided firm in Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications 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.
Strong track record of project management
– Obligations Deregulation is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Obligations Deregulation in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications are -
Need for greater diversity
– Obligations Deregulation 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.
High cash cycle compare to competitors
Obligations Deregulation 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 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 Obligations Deregulation supply chain. Even after few cautionary changes mentioned in the HBR case study - Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Obligations Deregulation vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Obligations Deregulation is dominated by functional specialists. It is not different from other players in the Global Business segment. Obligations Deregulation needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Obligations Deregulation to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Obligations Deregulation 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Obligations Deregulation 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Alexander Dyck, Indra A. Reinbergs suggests that, Obligations Deregulation 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.
No frontier risks strategy
– After analyzing the HBR case study Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications, 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications 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 Obligations Deregulation has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications HBR case study mentions - Obligations Deregulation 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.
Interest costs
– Compare to the competition, Obligations Deregulation has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications | 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 Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Obligations Deregulation 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Obligations Deregulation can use these opportunities to build new business models that can help the communities that Obligations Deregulation operates in. Secondly it can use opportunities from government spending in Global Business sector.
Manufacturing automation
– Obligations Deregulation 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.
Using analytics as competitive advantage
– Obligations Deregulation 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 Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Obligations Deregulation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Obligations Deregulation 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 Obligations Deregulation has opened avenues for new revenue streams for the organization in the industry. This can help Obligations Deregulation to build a more holistic ecosystem as suggested in the Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications case study. Obligations Deregulation can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Obligations Deregulation 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.
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. Obligations Deregulation 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 Obligations Deregulation in the consumer business. Now Obligations Deregulation can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Obligations Deregulation to increase its market reach. Obligations Deregulation 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.
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. Obligations Deregulation can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Obligations Deregulation is facing challenges because of the dominance of functional experts in the organization. Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications 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.
Developing new processes and practices
– Obligations Deregulation 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.
Threats Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications are -
Technology acceleration in Forth Industrial Revolution
– Obligations Deregulation has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Obligations Deregulation 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.
Increasing wage structure of Obligations Deregulation
– 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 Obligations Deregulation.
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. Obligations Deregulation can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Obligations Deregulation 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.
Shortening product life cycle
– it is one of the major threat that Obligations Deregulation is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Obligations Deregulation 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. Obligations Deregulation can take advantage of this fund but it will also bring new competitors in the Global Business industry.
High dependence on third party suppliers
– Obligations Deregulation 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.
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 Obligations Deregulation.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Obligations Deregulation with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Obligations Deregulation 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.
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 Obligations Deregulation in the Global Business sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Obligations Deregulation 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 Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications .
Weighted SWOT Analysis of Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications 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 Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications 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 Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications 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 Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications 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 Note on Deregulation and Social Obligations: Universal Service, Access Pricing, and Competitive Dynamics in U.S. Telecommunications 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 Obligations Deregulation needs to make to build a sustainable competitive advantage.
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