Veridicom (A): If You Build It, They Will Come SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Veridicom (A): If You Build It, They Will Come
The Veridicom case study focuses on how a startup company identifies a potential promising opportunity. The case study focuses on Veridicom, a silicon fingerprint sensor company, launched in 1997. The (A) case focuses on the history and the founding of Veridicom, as well as the issues the company faced in the first few years (leadership, strategy and market issues, as well as product issues). The case also discusses the change of leadership one year into the startup. The (B) case shows what happened and how the company ultimately did not succeed. The (B) case also provides reflections and thoughts from key players involved with the company, including their views as to why the company failed. Please note: This case also has a (B) supplement available.
Swot Analysis of "Veridicom (A): If You Build It, They Will Come" written by Naeem Zafar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Veridicom Fingerprint facing as an external strategic factors. Some of the topics covered in Veridicom (A): If You Build It, They Will Come case study are - Strategic Management Strategies, Venture capital and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Veridicom (A): If You Build It, They Will Come casestudy better are - – supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, cloud computing is disrupting traditional business models, increasing energy prices, technology disruption, increasing transportation and logistics costs,
increasing household debt because of falling income levels, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Veridicom (A): If You Build It, They Will Come
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Veridicom (A): If You Build It, They Will Come case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Veridicom Fingerprint, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Veridicom Fingerprint 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 Veridicom (A): If You Build It, They Will Come can be done for the following purposes –
1. Strategic planning using facts provided in Veridicom (A): If You Build It, They Will Come case study
2. Improving business portfolio management of Veridicom Fingerprint
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 Veridicom Fingerprint
Strengths Veridicom (A): If You Build It, They Will Come | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Veridicom Fingerprint in Veridicom (A): If You Build It, They Will Come Harvard Business Review case study are -
Analytics focus
– Veridicom Fingerprint 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.
Low bargaining power of suppliers
– Suppliers of Veridicom Fingerprint in the sector have low bargaining power. Veridicom (A): If You Build It, They Will Come has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Veridicom Fingerprint to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Innovation & Entrepreneurship field
– Veridicom Fingerprint 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 Veridicom Fingerprint in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Veridicom (A): If You Build It, They Will Come firm has clearly differentiated products in the market place. This has enabled Veridicom Fingerprint to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Veridicom Fingerprint to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Veridicom Fingerprint has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Veridicom Fingerprint 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.
Highly skilled collaborators
– Veridicom Fingerprint 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 Veridicom (A): If You Build It, They Will Come 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 Veridicom (A): If You Build It, They Will Come 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.
Strong track record of project management
– Veridicom Fingerprint is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Veridicom Fingerprint digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Veridicom Fingerprint 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.
High brand equity
– Veridicom Fingerprint has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Veridicom Fingerprint to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Veridicom Fingerprint has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Veridicom (A): If You Build It, They Will Come 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.
Learning organization
- Veridicom Fingerprint 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 Veridicom Fingerprint is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Veridicom (A): If You Build It, They Will Come Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Veridicom (A): If You Build It, They Will Come | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Veridicom (A): If You Build It, They Will Come are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Veridicom (A): If You Build It, They Will Come 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 Veridicom Fingerprint has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Veridicom Fingerprint is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Veridicom (A): If You Build It, They Will Come can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Veridicom Fingerprint 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. Veridicom Fingerprint 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.
High cash cycle compare to competitors
Veridicom Fingerprint 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Veridicom Fingerprint 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Veridicom (A): If You Build It, They Will Come, it seems that the employees of Veridicom Fingerprint 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 bargaining power of channel partners
– Because of the regulatory requirements, Naeem Zafar suggests that, Veridicom Fingerprint 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.
Aligning sales with marketing
– It come across in the case study Veridicom (A): If You Build It, They Will Come that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Veridicom (A): If You Build It, They Will Come can leverage the sales team experience to cultivate customer relationships as Veridicom Fingerprint is planning to shift buying processes online.
Lack of clear differentiation of Veridicom Fingerprint products
– To increase the profitability and margins on the products, Veridicom Fingerprint needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Veridicom Fingerprint 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.
Slow to strategic competitive environment developments
– As Veridicom (A): If You Build It, They Will Come HBR case study mentions - Veridicom Fingerprint 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.
Opportunities Veridicom (A): If You Build It, They Will Come | 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 Veridicom (A): If You Build It, They Will Come are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Veridicom Fingerprint 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.
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 Veridicom Fingerprint in the consumer business. Now Veridicom Fingerprint can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Veridicom Fingerprint 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Veridicom Fingerprint 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Veridicom Fingerprint 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 Veridicom Fingerprint 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, Veridicom Fingerprint can use these opportunities to build new business models that can help the communities that Veridicom Fingerprint operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Veridicom Fingerprint 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, Veridicom (A): If You Build It, They Will Come, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Veridicom Fingerprint 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.
Using analytics as competitive advantage
– Veridicom Fingerprint 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 Veridicom (A): If You Build It, They Will Come - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Veridicom Fingerprint to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Veridicom Fingerprint can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Veridicom Fingerprint 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Veridicom Fingerprint is facing challenges because of the dominance of functional experts in the organization. Veridicom (A): If You Build It, They Will Come 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.
Better consumer reach
– The expansion of the 5G network will help Veridicom Fingerprint to increase its market reach. Veridicom Fingerprint 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 Veridicom (A): If You Build It, They Will Come External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Veridicom (A): If You Build It, They Will Come are -
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 Veridicom Fingerprint business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Veridicom Fingerprint
– 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 Veridicom Fingerprint.
Consumer confidence and its impact on Veridicom Fingerprint 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Veridicom Fingerprint 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.
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 Veridicom Fingerprint.
Technology acceleration in Forth Industrial Revolution
– Veridicom Fingerprint has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Veridicom Fingerprint 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.
Environmental challenges
– Veridicom Fingerprint 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. Veridicom Fingerprint can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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. Veridicom Fingerprint 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.
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
– Veridicom Fingerprint 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.
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. Veridicom Fingerprint needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Veridicom (A): If You Build It, They Will Come, Veridicom Fingerprint 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 Veridicom Fingerprint 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 Veridicom (A): If You Build It, They Will Come 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 Veridicom (A): If You Build It, They Will Come 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 Veridicom (A): If You Build It, They Will Come 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 Veridicom (A): If You Build It, They Will Come 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 Veridicom (A): If You Build It, They Will Come 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 Veridicom Fingerprint needs to make to build a sustainable competitive advantage.
