AngelList: Changing The Landscape of Investing SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of AngelList: Changing The Landscape of Investing
The case follows AngelList, an online platform connecting entrepreneurs with investors, as it searches for product/market fit and business models. Founded in 2010 by entrepreneurs Naval Ravikant and Babak Nivi, AngelList begins as a project to give back to the start-up community. Ravikant and Nivi write a blog that provides founders with advice and then build AngelList to give them access to investors. However, investors often have incentives to interact with entrepreneurs using traditional modes of communication in order to protect their access to top startups, limiting trackable activities and outcomes on AngelList.
Swot Analysis of "AngelList: Changing The Landscape of Investing" written by Robert E. Siegel, Yin Li includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Angellist Nivi facing as an external strategic factors. Some of the topics covered in AngelList: Changing The Landscape of Investing case study are - Strategic Management Strategies, and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the AngelList: Changing The Landscape of Investing casestudy better are - – increasing energy prices, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, supply chains are disrupted by pandemic , wage bills are increasing, there is increasing trade war between United States & China, increasing household debt because of falling income levels,
increasing government debt because of Covid-19 spendings, technology disruption, etc
Introduction to SWOT Analysis of AngelList: Changing The Landscape of Investing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in AngelList: Changing The Landscape of Investing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Angellist Nivi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Angellist Nivi 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 AngelList: Changing The Landscape of Investing can be done for the following purposes –
1. Strategic planning using facts provided in AngelList: Changing The Landscape of Investing case study
2. Improving business portfolio management of Angellist Nivi
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 Angellist Nivi
Strengths AngelList: Changing The Landscape of Investing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Angellist Nivi in AngelList: Changing The Landscape of Investing Harvard Business Review case study are -
High switching costs
– The high switching costs that Angellist Nivi 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.
High brand equity
– Angellist Nivi has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Angellist Nivi to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Angellist Nivi is present in almost all the verticals within the industry. This has provided firm in AngelList: Changing The Landscape of Investing 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Angellist Nivi digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Angellist Nivi 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.
Successful track record of launching new products
– Angellist Nivi has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Angellist Nivi 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.
Ability to recruit top talent
– Angellist Nivi is one of the leading recruiters in the industry. Managers in the AngelList: Changing The Landscape of Investing are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Angellist Nivi has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in AngelList: Changing The Landscape of Investing 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.
Low bargaining power of suppliers
– Suppliers of Angellist Nivi in the sector have low bargaining power. AngelList: Changing The Landscape of Investing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Angellist Nivi to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Angellist Nivi is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Angellist Nivi 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 Angellist Nivi is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in AngelList: Changing The Landscape of Investing Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Angellist Nivi 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 AngelList: Changing The Landscape of Investing HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Angellist Nivi 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.
Weaknesses AngelList: Changing The Landscape of Investing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AngelList: Changing The Landscape of Investing are -
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 Angellist Nivi supply chain. Even after few cautionary changes mentioned in the HBR case study - AngelList: Changing The Landscape of Investing, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Angellist Nivi vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Angellist Nivi is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Angellist Nivi needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Angellist Nivi to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Angellist Nivi products
– To increase the profitability and margins on the products, Angellist Nivi needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Angellist Nivi 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.
Slow to strategic competitive environment developments
– As AngelList: Changing The Landscape of Investing HBR case study mentions - Angellist Nivi 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Angellist Nivi is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study AngelList: Changing The Landscape of Investing can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Angellist Nivi, firm in the HBR case study AngelList: Changing The Landscape of Investing needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Angellist Nivi 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study AngelList: Changing The Landscape of Investing, it seems that the employees of Angellist Nivi 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 AngelList: Changing The Landscape of Investing 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 Angellist Nivi has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Angellist Nivi 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.
Opportunities AngelList: Changing The Landscape of Investing | 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 AngelList: Changing The Landscape of Investing are -
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. Angellist Nivi can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Angellist Nivi 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.
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. Angellist Nivi can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Angellist Nivi can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. AngelList: Changing The Landscape of Investing 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 Angellist Nivi in the consumer business. Now Angellist Nivi can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Angellist Nivi 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 AngelList: Changing The Landscape of Investing - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Angellist Nivi to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Angellist Nivi 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. Angellist Nivi 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, Angellist Nivi 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, Angellist Nivi can use these opportunities to build new business models that can help the communities that Angellist Nivi operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Angellist Nivi 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.
Developing new processes and practices
– Angellist Nivi 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.
Leveraging digital technologies
– Angellist Nivi 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 Angellist Nivi to increase its market reach. Angellist Nivi 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.
Threats AngelList: Changing The Landscape of Investing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study AngelList: Changing The Landscape of Investing are -
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. Angellist Nivi needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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 Angellist Nivi.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Angellist Nivi 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 AngelList: Changing The Landscape of Investing .
Increasing wage structure of Angellist Nivi
– 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 Angellist Nivi.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study AngelList: Changing The Landscape of Investing, Angellist Nivi 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 .
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. Angellist Nivi can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Angellist Nivi in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Regulatory challenges
– Angellist Nivi 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.
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.
High dependence on third party suppliers
– Angellist Nivi 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
– Angellist Nivi 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Angellist Nivi with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of AngelList: Changing The Landscape of Investing 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 AngelList: Changing The Landscape of Investing 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 AngelList: Changing The Landscape of Investing 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 AngelList: Changing The Landscape of Investing 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 AngelList: Changing The Landscape of Investing 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 Angellist Nivi needs to make to build a sustainable competitive advantage.