Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start"
Supplement to case B5661. The SpeedSim case study focuses on how mergers and acquisitions work in startup and entrepreneurial environments. It describes how an intelligent East Coast engineer built an extremely frugal company with a goal for acquisition and how the SpeedSim team masterfully executed and maximized their return by starting, growing, and selling a company. The case analyzes the process of how small companies position themselves to be acquired and how an acquirer assesses a company. The case can be used for mergers and acquisition and exit discussions, as well as for culture and organizational behavior discussions for entrepreneurship curriculums. Please note: This case also has an (A) supplement available. The A case discusses how SpeedSim was built and what process they went through to get acquired. The B case addresses what happened after the acquisition and deals with the perspectives of the players and the challenges of the integration. Students are asked to evaluate how a company should go about establishing itself to be acquired and what decisions should be made in the earlier days of the startup. Students will also discuss how to create a successful acquisition and what factors contribute to the success of such an acquisition.
Swot Analysis of "Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start"" written by Naeem Zafar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Speedsim Acquisition facing as an external strategic factors. Some of the topics covered in Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" case study are - Strategic Management Strategies, Venture capital and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices,
technology disruption, increasing commodity prices, etc
Introduction to SWOT Analysis of Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Speedsim Acquisition, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Speedsim Acquisition 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 Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" can be done for the following purposes –
1. Strategic planning using facts provided in Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" case study
2. Improving business portfolio management of Speedsim Acquisition
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 Speedsim Acquisition
Strengths Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Speedsim Acquisition in Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Speedsim Acquisition 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.
Analytics focus
– Speedsim Acquisition 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 Naeem Zafar can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Speedsim Acquisition digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Speedsim Acquisition 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.
Training and development
– Speedsim Acquisition has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" 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.
Diverse revenue streams
– Speedsim Acquisition is present in almost all the verticals within the industry. This has provided firm in Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" 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.
Successful track record of launching new products
– Speedsim Acquisition has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Speedsim Acquisition 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" firm has clearly differentiated products in the market place. This has enabled Speedsim Acquisition to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Speedsim Acquisition to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Speedsim Acquisition 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.
Organizational Resilience of Speedsim Acquisition
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Speedsim Acquisition does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Speedsim Acquisition has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Speedsim Acquisition in the sector have low bargaining power. Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Speedsim Acquisition to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Speedsim Acquisition is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start", is just above the industry average. Speedsim Acquisition 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.
Lack of clear differentiation of Speedsim Acquisition products
– To increase the profitability and margins on the products, Speedsim Acquisition needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Speedsim Acquisition 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 - Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" 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, Speedsim Acquisition 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.
No frontier risks strategy
– After analyzing the HBR case study Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start", 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Speedsim Acquisition is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" 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 Speedsim Acquisition, firm in the HBR case study Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Speedsim Acquisition 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.
Skills based hiring
– The stress on hiring functional specialists at Speedsim Acquisition 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.
Interest costs
– Compare to the competition, Speedsim Acquisition 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.
Need for greater diversity
– Speedsim Acquisition 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.
Opportunities Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" | 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 Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" are -
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 Speedsim Acquisition 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Speedsim Acquisition 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, Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start", to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Speedsim Acquisition can use these opportunities to build new business models that can help the communities that Speedsim Acquisition operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Speedsim Acquisition 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 Speedsim Acquisition to hire the very best people irrespective of their geographical location.
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. Speedsim Acquisition can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Speedsim Acquisition can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Speedsim Acquisition 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.
Loyalty marketing
– Speedsim Acquisition 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.
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. Speedsim Acquisition 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. Speedsim Acquisition 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.
Creating value in data economy
– The success of analytics program of Speedsim Acquisition has opened avenues for new revenue streams for the organization in the industry. This can help Speedsim Acquisition to build a more holistic ecosystem as suggested in the Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" case study. Speedsim Acquisition can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Speedsim Acquisition 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 Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Speedsim Acquisition to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Speedsim Acquisition to increase its market reach. Speedsim Acquisition 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.
Developing new processes and practices
– Speedsim Acquisition 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.
Threats Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" 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. Speedsim Acquisition needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Environmental challenges
– Speedsim Acquisition 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. Speedsim Acquisition can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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 Speedsim Acquisition.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start", Speedsim Acquisition 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 .
Regulatory challenges
– Speedsim Acquisition 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.
Shortening product life cycle
– it is one of the major threat that Speedsim Acquisition is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Speedsim Acquisition with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Speedsim Acquisition can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Speedsim Acquisition 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.
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. Speedsim Acquisition 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 Speedsim Acquisition in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Speedsim Acquisition in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Weighted SWOT Analysis of Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" 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 Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" 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 Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" 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 Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" 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 Quickturn's Acquisition of SpeedSim (B): "Doomed from the Start" 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 Speedsim Acquisition needs to make to build a sustainable competitive advantage.