Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses
This note introduces the Value Venture Chain (VVC) model, which applies the paradigm of the value chain, well-accepted in other industries, to the process of conceptualizing, funding and building new businesses. The VVC provides startup executives, corporate new-business-development professionals, service providers, venture investors and aspiring entrepreneurs with a conceptual framework and a shared language of commonly-understood terminology.
Swot Analysis of "Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses" written by James D. Price includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Vvc Conceptual facing as an external strategic factors. Some of the topics covered in Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses case study are - Strategic Management Strategies, Supply chain, Venture capital and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses casestudy better are - – supply chains are disrupted by pandemic , increasing transportation and logistics costs, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, there is increasing trade war between United States & China,
technology disruption, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vvc Conceptual, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vvc Conceptual 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses can be done for the following purposes –
1. Strategic planning using facts provided in Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses case study
2. Improving business portfolio management of Vvc Conceptual
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 Vvc Conceptual
Strengths Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vvc Conceptual in Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses Harvard Business Review case study are -
High switching costs
– The high switching costs that Vvc Conceptual 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.
Highly skilled collaborators
– Vvc Conceptual 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Vvc Conceptual is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Vvc Conceptual in the sector have low bargaining power. Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Vvc Conceptual to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Vvc Conceptual
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Vvc Conceptual does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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.
Superior customer experience
– The customer experience strategy of Vvc Conceptual in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Vvc Conceptual 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 Vvc Conceptual is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Vvc Conceptual has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Vvc Conceptual 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.
Cross disciplinary teams
– Horizontal connected teams at the Vvc Conceptual 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.
Ability to recruit top talent
– Vvc Conceptual is one of the leading recruiters in the industry. Managers in the Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses firm has clearly differentiated products in the market place. This has enabled Vvc Conceptual to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Vvc Conceptual to invest into research and development (R&D) and innovation.
Weaknesses Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses are -
High bargaining power of channel partners
– Because of the regulatory requirements, James D. Price suggests that, Vvc Conceptual is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to strategic competitive environment developments
– As Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses HBR case study mentions - Vvc Conceptual takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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 Vvc Conceptual has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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 Vvc Conceptual 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses, is just above the industry average. Vvc Conceptual 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.
Low market penetration in new markets
– Outside its home market of Vvc Conceptual, firm in the HBR case study Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Vvc Conceptual supply chain. Even after few cautionary changes mentioned in the HBR case study - Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Vvc Conceptual vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses, it seems that the employees of Vvc Conceptual 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.
Aligning sales with marketing
– It come across in the case study Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses can leverage the sales team experience to cultivate customer relationships as Vvc Conceptual is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Vvc Conceptual 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. Vvc Conceptual 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses, in the dynamic environment Vvc Conceptual has struggled to respond to the nimble upstart competition. Vvc Conceptual has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses | 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Vvc Conceptual 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 Vvc Conceptual to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Vvc Conceptual 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, Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Vvc Conceptual can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Vvc Conceptual 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.
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. Vvc Conceptual 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. Vvc Conceptual 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
– Vvc Conceptual 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.
Building a culture of innovation
– managers at Vvc Conceptual can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Innovation & Entrepreneurship segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Vvc Conceptual can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Vvc Conceptual can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Vvc Conceptual can use these opportunities to build new business models that can help the communities that Vvc Conceptual operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Better consumer reach
– The expansion of the 5G network will help Vvc Conceptual to increase its market reach. Vvc Conceptual 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.
Buying journey improvements
– Vvc Conceptual can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Vvc Conceptual is facing challenges because of the dominance of functional experts in the organization. Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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.
Threats Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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 Vvc Conceptual business can come under increasing regulations regarding data privacy, data security, etc.
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 Vvc Conceptual.
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. Vvc Conceptual needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Consumer confidence and its impact on Vvc Conceptual demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Environmental challenges
– Vvc Conceptual 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. Vvc Conceptual 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. Vvc Conceptual 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Vvc Conceptual with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Vvc Conceptual 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses .
High dependence on third party suppliers
– Vvc Conceptual 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.
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.
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. Vvc Conceptual 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 Vvc Conceptual 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 Vvc Conceptual 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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 Vvc Conceptual needs to make to build a sustainable competitive advantage.
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