Case Study Description of Integrated Strategy: Market and Non-Market Components
A business strategy must be congruent with the capabilities of a firm as well as both its market and nonmarket environments. The market environment includes those interactions between the firm and other parties that are intermediated by markets or private agreements. The nonmarket environment includes those interactions that are intermediated by public institutions. A business strategy must integrate both market and nonmarket components.
Swot Analysis of "Integrated Strategy: Market and Non-Market Components" written by David P. Baron includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nonmarket Intermediated facing as an external strategic factors. Some of the topics covered in Integrated Strategy: Market and Non-Market Components case study are - Strategic Management Strategies, Marketing, Policy, Strategic planning and Global Business.
Some of the macro environment factors that can be used to understand the Integrated Strategy: Market and Non-Market Components casestudy better are - – wage bills are increasing, increasing energy prices, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy,
geopolitical disruptions, technology disruption, etc
Introduction to SWOT Analysis of Integrated Strategy: Market and Non-Market Components
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Integrated Strategy: Market and Non-Market Components case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nonmarket Intermediated, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nonmarket Intermediated 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 Integrated Strategy: Market and Non-Market Components can be done for the following purposes –
1. Strategic planning using facts provided in Integrated Strategy: Market and Non-Market Components case study
2. Improving business portfolio management of Nonmarket Intermediated
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 Nonmarket Intermediated
Strengths Integrated Strategy: Market and Non-Market Components | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nonmarket Intermediated in Integrated Strategy: Market and Non-Market Components Harvard Business Review case study are -
Learning organization
- Nonmarket Intermediated 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 Nonmarket Intermediated is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Integrated Strategy: Market and Non-Market Components Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Nonmarket Intermediated is one of the most innovative firm in sector. Manager in Integrated Strategy: Market and Non-Market Components Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Nonmarket Intermediated 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.
Operational resilience
– The operational resilience strategy in the Integrated Strategy: Market and Non-Market Components 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
– Nonmarket Intermediated has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Integrated Strategy: Market and Non-Market Components 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.
Strong track record of project management
– Nonmarket Intermediated is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Nonmarket Intermediated digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nonmarket Intermediated 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.
Analytics focus
– Nonmarket Intermediated 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 David P. Baron 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.
Sustainable margins compare to other players in Global Business industry
– Integrated Strategy: Market and Non-Market Components firm has clearly differentiated products in the market place. This has enabled Nonmarket Intermediated to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Nonmarket Intermediated to invest into research and development (R&D) and innovation.
High brand equity
– Nonmarket Intermediated has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nonmarket Intermediated to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Nonmarket Intermediated 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.
Successful track record of launching new products
– Nonmarket Intermediated has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nonmarket Intermediated 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.
Weaknesses Integrated Strategy: Market and Non-Market Components | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Integrated Strategy: Market and Non-Market Components are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Integrated Strategy: Market and Non-Market Components, in the dynamic environment Nonmarket Intermediated has struggled to respond to the nimble upstart competition. Nonmarket Intermediated has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Nonmarket Intermediated 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.
Lack of clear differentiation of Nonmarket Intermediated products
– To increase the profitability and margins on the products, Nonmarket Intermediated needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Integrated Strategy: Market and Non-Market Components 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 Integrated Strategy: Market and Non-Market Components can leverage the sales team experience to cultivate customer relationships as Nonmarket Intermediated is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Integrated Strategy: Market and Non-Market Components, 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.
Low market penetration in new markets
– Outside its home market of Nonmarket Intermediated, firm in the HBR case study Integrated Strategy: Market and Non-Market Components needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Integrated Strategy: Market and Non-Market Components, is just above the industry average. Nonmarket Intermediated 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.
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 Nonmarket Intermediated supply chain. Even after few cautionary changes mentioned in the HBR case study - Integrated Strategy: Market and Non-Market Components, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nonmarket Intermediated vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Integrated Strategy: Market and Non-Market Components HBR case study mentions - Nonmarket Intermediated 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.
Capital Spending Reduction
– Even during the low interest decade, Nonmarket Intermediated 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 cash cycle compare to competitors
Nonmarket Intermediated 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.
Opportunities Integrated Strategy: Market and Non-Market Components | 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 Integrated Strategy: Market and Non-Market Components are -
Buying journey improvements
– Nonmarket Intermediated can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Integrated Strategy: Market and Non-Market Components 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 Nonmarket Intermediated in the consumer business. Now Nonmarket Intermediated 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 Nonmarket Intermediated to increase its market reach. Nonmarket Intermediated will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Nonmarket Intermediated can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Nonmarket Intermediated 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. Nonmarket Intermediated 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. Nonmarket Intermediated 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Nonmarket Intermediated 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.
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. Nonmarket Intermediated can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Nonmarket Intermediated 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.
Creating value in data economy
– The success of analytics program of Nonmarket Intermediated has opened avenues for new revenue streams for the organization in the industry. This can help Nonmarket Intermediated to build a more holistic ecosystem as suggested in the Integrated Strategy: Market and Non-Market Components case study. Nonmarket Intermediated can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Nonmarket Intermediated 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nonmarket Intermediated can use these opportunities to build new business models that can help the communities that Nonmarket Intermediated operates in. Secondly it can use opportunities from government spending in Global Business sector.
Loyalty marketing
– Nonmarket Intermediated 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.
Threats Integrated Strategy: Market and Non-Market Components External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Integrated Strategy: Market and Non-Market Components are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Integrated Strategy: Market and Non-Market Components, Nonmarket Intermediated 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 .
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. Nonmarket Intermediated can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Nonmarket Intermediated
– 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 Nonmarket Intermediated.
Consumer confidence and its impact on Nonmarket Intermediated 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.
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 Nonmarket Intermediated.
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 Nonmarket Intermediated business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Nonmarket Intermediated 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. Nonmarket Intermediated can take advantage of this fund but it will also bring new competitors in the Global Business industry.
High dependence on third party suppliers
– Nonmarket Intermediated 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.
Stagnating economy with rate increase
– Nonmarket Intermediated 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.
Regulatory challenges
– Nonmarket Intermediated 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nonmarket Intermediated with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Nonmarket Intermediated in the Global Business sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Integrated Strategy: Market and Non-Market Components 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 Integrated Strategy: Market and Non-Market Components 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 Integrated Strategy: Market and Non-Market Components 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 Integrated Strategy: Market and Non-Market Components 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 Integrated Strategy: Market and Non-Market Components 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 Nonmarket Intermediated needs to make to build a sustainable competitive advantage.