NuScale Power-the Future of Small Modular Reactors SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of NuScale Power-the Future of Small Modular Reactors
NuScale Power, an entrepreneurial venture in Portland, Oregon, has designed the leading modular nuclear reactor in the United States. This Reactor will be safest and simplest ever built. Started in 2007 as an entrepreneurial venture, the company is now two years away from applying to the Nuclear Regulatory Commission for a License certification. While the NRC considers their application, the company will finish designing a nuclear plant to use 12 of their modular reactors. If the company can mitigate the substantial risks facing it, 2021 will see their first of several hundred planned sales.
Swot Analysis of "NuScale Power-the Future of Small Modular Reactors" written by Richard H.K. Vietor includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nuscale Modular facing as an external strategic factors. Some of the topics covered in NuScale Power-the Future of Small Modular Reactors case study are - Strategic Management Strategies, Managing uncertainty, Risk management, Technology and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the NuScale Power-the Future of Small Modular Reactors casestudy better are - – technology disruption, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, increasing commodity prices, challanges to central banks by blockchain based private currencies,
there is increasing trade war between United States & China, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of NuScale Power-the Future of Small Modular Reactors
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in NuScale Power-the Future of Small Modular Reactors case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nuscale Modular, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nuscale Modular 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 NuScale Power-the Future of Small Modular Reactors can be done for the following purposes –
1. Strategic planning using facts provided in NuScale Power-the Future of Small Modular Reactors case study
2. Improving business portfolio management of Nuscale Modular
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 Nuscale Modular
Strengths NuScale Power-the Future of Small Modular Reactors | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nuscale Modular in NuScale Power-the Future of Small Modular Reactors Harvard Business Review case study are -
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Nuscale Modular digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nuscale Modular 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.
Learning organization
- Nuscale Modular 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 Nuscale Modular is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in NuScale Power-the Future of Small Modular Reactors Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– NuScale Power-the Future of Small Modular Reactors firm has clearly differentiated products in the market place. This has enabled Nuscale Modular to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Nuscale Modular to invest into research and development (R&D) and innovation.
Strong track record of project management
– Nuscale Modular is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Nuscale Modular
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Nuscale Modular does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Nuscale Modular is present in almost all the verticals within the industry. This has provided firm in NuScale Power-the Future of Small Modular Reactors 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.
Low bargaining power of suppliers
– Suppliers of Nuscale Modular in the sector have low bargaining power. NuScale Power-the Future of Small Modular Reactors has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nuscale Modular to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Innovation & Entrepreneurship field
– Nuscale Modular 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 Nuscale Modular in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Nuscale Modular has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nuscale Modular to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Nuscale Modular has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in NuScale Power-the Future of Small Modular Reactors 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
– Nuscale Modular 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 NuScale Power-the Future of Small Modular Reactors HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the NuScale Power-the Future of Small Modular Reactors 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.
Weaknesses NuScale Power-the Future of Small Modular Reactors | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of NuScale Power-the Future of Small Modular Reactors are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study NuScale Power-the Future of Small Modular Reactors, it seems that the employees of Nuscale Modular don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the NuScale Power-the Future of Small Modular Reactors 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 Nuscale Modular has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As NuScale Power-the Future of Small Modular Reactors HBR case study mentions - Nuscale Modular 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, Nuscale Modular 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.
Products dominated business model
– Even though Nuscale Modular has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - NuScale Power-the Future of Small Modular Reactors should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Nuscale Modular 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.
Lack of clear differentiation of Nuscale Modular products
– To increase the profitability and margins on the products, Nuscale Modular needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study NuScale Power-the Future of Small Modular Reactors 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 Nuscale Modular 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Nuscale Modular is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Nuscale Modular needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Nuscale Modular to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study NuScale Power-the Future of Small Modular Reactors, in the dynamic environment Nuscale Modular has struggled to respond to the nimble upstart competition. Nuscale Modular has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Nuscale Modular, firm in the HBR case study NuScale Power-the Future of Small Modular Reactors needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities NuScale Power-the Future of Small Modular Reactors | 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 NuScale Power-the Future of Small Modular Reactors are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nuscale Modular is facing challenges because of the dominance of functional experts in the organization. NuScale Power-the Future of Small Modular Reactors 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.
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 Nuscale Modular in the consumer business. Now Nuscale Modular can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nuscale Modular can use these opportunities to build new business models that can help the communities that Nuscale Modular operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Buying journey improvements
– Nuscale Modular can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. NuScale Power-the Future of Small Modular Reactors 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.
Learning at scale
– Online learning technologies has now opened space for Nuscale Modular 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.
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 Nuscale Modular 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Nuscale Modular 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. Nuscale Modular 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.
Manufacturing automation
– Nuscale Modular can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Nuscale Modular 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Nuscale Modular can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Nuscale Modular can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Nuscale Modular 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Nuscale Modular can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats NuScale Power-the Future of Small Modular Reactors External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study NuScale Power-the Future of Small Modular Reactors are -
Environmental challenges
– Nuscale Modular 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. Nuscale Modular can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
High dependence on third party suppliers
– Nuscale Modular 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.
Increasing wage structure of Nuscale Modular
– 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 Nuscale Modular.
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. Nuscale Modular can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study NuScale Power-the Future of Small Modular Reactors, Nuscale Modular 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nuscale Modular with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Regulatory challenges
– Nuscale Modular 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.
Stagnating economy with rate increase
– Nuscale Modular 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.
Shortening product life cycle
– it is one of the major threat that Nuscale Modular is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Nuscale Modular needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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 Nuscale Modular in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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 Nuscale Modular.
Weighted SWOT Analysis of NuScale Power-the Future of Small Modular Reactors 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 NuScale Power-the Future of Small Modular Reactors 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 NuScale Power-the Future of Small Modular Reactors 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 NuScale Power-the Future of Small Modular Reactors 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 NuScale Power-the Future of Small Modular Reactors 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 Nuscale Modular needs to make to build a sustainable competitive advantage.