The mission of the nonprofit Jumpstart for Young Children was to address the problem of school readiness of low-income family preschoolers. It had been growing significantly, and to achieve its projected expansion would require major increases in funding. After considerable debate, it decided to create a for-profit subsidiary: a Web-based company disseminating the educational materials used in the Jumpstart program. The effort entailed raising private venture capital and recruiting a new management team. After a year, management was assessing the start-up experience and deliberating on its future strategy.
Swot Analysis of "SchoolSuccess.net" written by James E. Austin, Arthur McCaffrey includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jumpstart Preschoolers facing as an external strategic factors. Some of the topics covered in SchoolSuccess.net case study are - Strategic Management Strategies, Internet, Social enterprise, Venture capital and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the SchoolSuccess.net casestudy better are - – talent flight as more people leaving formal jobs, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, wage bills are increasing, increasing household debt because of falling income levels,
central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of SchoolSuccess.net
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in SchoolSuccess.net case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jumpstart Preschoolers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jumpstart Preschoolers 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 SchoolSuccess.net can be done for the following purposes –
1. Strategic planning using facts provided in SchoolSuccess.net case study
2. Improving business portfolio management of Jumpstart Preschoolers
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jumpstart Preschoolers
Strengths SchoolSuccess.net | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jumpstart Preschoolers in SchoolSuccess.net Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Jumpstart Preschoolers in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Jumpstart Preschoolers is one of the leading recruiters in the industry. Managers in the SchoolSuccess.net are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Jumpstart Preschoolers 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 SchoolSuccess.net HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Jumpstart Preschoolers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jumpstart Preschoolers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Jumpstart Preschoolers 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
– Jumpstart Preschoolers has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in SchoolSuccess.net 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.
Cross disciplinary teams
– Horizontal connected teams at the Jumpstart Preschoolers 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Jumpstart Preschoolers digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jumpstart Preschoolers 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 Jumpstart Preschoolers in the sector have low bargaining power. SchoolSuccess.net has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jumpstart Preschoolers to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Jumpstart Preschoolers is one of the most innovative firm in sector. Manager in SchoolSuccess.net 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
– Jumpstart Preschoolers is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– SchoolSuccess.net firm has clearly differentiated products in the market place. This has enabled Jumpstart Preschoolers to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Jumpstart Preschoolers to invest into research and development (R&D) and innovation.
Weaknesses SchoolSuccess.net | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SchoolSuccess.net are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study SchoolSuccess.net, is just above the industry average. Jumpstart Preschoolers 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.
Slow decision making process
– As mentioned earlier in the report, Jumpstart Preschoolers 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. Jumpstart Preschoolers 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.
Increasing silos among functional specialists
– The organizational structure of Jumpstart Preschoolers is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Jumpstart Preschoolers needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jumpstart Preschoolers to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Jumpstart Preschoolers 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.
Capital Spending Reduction
– Even during the low interest decade, Jumpstart Preschoolers 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 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 Jumpstart Preschoolers supply chain. Even after few cautionary changes mentioned in the HBR case study - SchoolSuccess.net, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jumpstart Preschoolers vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study SchoolSuccess.net, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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 bargaining power of channel partners
– Because of the regulatory requirements, James E. Austin, Arthur McCaffrey suggests that, Jumpstart Preschoolers 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 strategic competitive environment developments
– As SchoolSuccess.net HBR case study mentions - Jumpstart Preschoolers takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High operating costs
– Compare to the competitors, firm in the HBR case study SchoolSuccess.net 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 Jumpstart Preschoolers 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Jumpstart Preschoolers 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.
Opportunities SchoolSuccess.net | 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 SchoolSuccess.net are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jumpstart Preschoolers can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Jumpstart Preschoolers can develop new processes and procedures in Innovation & Entrepreneurship 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.
Creating value in data economy
– The success of analytics program of Jumpstart Preschoolers has opened avenues for new revenue streams for the organization in the industry. This can help Jumpstart Preschoolers to build a more holistic ecosystem as suggested in the SchoolSuccess.net case study. Jumpstart Preschoolers can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jumpstart Preschoolers 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.
Buying journey improvements
– Jumpstart Preschoolers can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. SchoolSuccess.net 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.
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 Jumpstart Preschoolers 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Jumpstart Preschoolers in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Jumpstart Preschoolers 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.
Better consumer reach
– The expansion of the 5G network will help Jumpstart Preschoolers to increase its market reach. Jumpstart Preschoolers 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jumpstart Preschoolers 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 Jumpstart Preschoolers to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jumpstart Preschoolers can use these opportunities to build new business models that can help the communities that Jumpstart Preschoolers operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Learning at scale
– Online learning technologies has now opened space for Jumpstart Preschoolers 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jumpstart Preschoolers 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, SchoolSuccess.net, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats SchoolSuccess.net External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study SchoolSuccess.net are -
Shortening product life cycle
– it is one of the major threat that Jumpstart Preschoolers is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Jumpstart Preschoolers 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.
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 Jumpstart Preschoolers in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study SchoolSuccess.net, Jumpstart Preschoolers may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
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 Jumpstart Preschoolers business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Jumpstart Preschoolers can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Jumpstart Preschoolers.
Consumer confidence and its impact on Jumpstart Preschoolers 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.
Environmental challenges
– Jumpstart Preschoolers 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. Jumpstart Preschoolers can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Regulatory challenges
– Jumpstart Preschoolers 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 Innovation & Entrepreneurship industry regulations.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jumpstart Preschoolers 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 SchoolSuccess.net .
Technology acceleration in Forth Industrial Revolution
– Jumpstart Preschoolers has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Jumpstart Preschoolers needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Weighted SWOT Analysis of SchoolSuccess.net 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 SchoolSuccess.net 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 SchoolSuccess.net 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 SchoolSuccess.net 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 SchoolSuccess.net 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 Jumpstart Preschoolers needs to make to build a sustainable competitive advantage.
