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 - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs,
geopolitical disruptions, 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 -
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.
High brand equity
– Vvc Conceptual has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Vvc Conceptual to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Vvc Conceptual is present in almost all the verticals within the industry. This has provided firm in Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Low bargaining power of suppliers
– Suppliers of 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.
Effective Research and Development (R&D)
– Vvc Conceptual 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
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.
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.
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.
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.
Training and development
– Vvc Conceptual has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses 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.
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 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Vvc Conceptual 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses, 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.
Skills based hiring
– The stress on hiring functional specialists at Vvc Conceptual 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.
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.
Products dominated business model
– Even though Vvc Conceptual 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 - Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses should strive to include more intangible value offerings along with its core products and services.
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 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.
Need for greater diversity
– Vvc Conceptual 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Vvc Conceptual is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
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.
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.
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 Vvc Conceptual 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, 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.
Creating value in data economy
– The success of analytics program of Vvc Conceptual has opened avenues for new revenue streams for the organization in the industry. This can help Vvc Conceptual to build a more holistic ecosystem as suggested in the Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses case study. Vvc Conceptual can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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.
Loyalty marketing
– Vvc Conceptual 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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Vvc Conceptual 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.
Using analytics as competitive advantage
– Vvc Conceptual 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 Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Vvc Conceptual to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Vvc Conceptual in the consumer business. Now Vvc Conceptual can target international markets with far fewer capital restrictions requirements than the existing system.
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 -
Technology acceleration in Forth Industrial Revolution
– Vvc Conceptual has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Vvc Conceptual 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.
Regulatory challenges
– Vvc Conceptual 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.
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.
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.
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 .
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.
Stagnating economy with rate increase
– Vvc Conceptual 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.
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.
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.
Shortening product life cycle
– it is one of the major threat that Vvc Conceptual is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Vvc Conceptual
– 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 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.
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.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses
