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 - – talent flight as more people leaving formal jobs, increasing energy prices, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing,
increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
Analytics focus
– Vvc Conceptual 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 James D. Price 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.
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.
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.
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.
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.
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.
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.
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.
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.
Innovation driven organization
– Vvc Conceptual is one of the most innovative firm in sector. Manager in Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
Ability to lead change in Innovation & Entrepreneurship field
– Vvc Conceptual 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 Vvc Conceptual in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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 -
Increasing silos among functional specialists
– The organizational structure of Vvc Conceptual is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Vvc Conceptual needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Vvc Conceptual to focus more on services rather than just following the product oriented approach.
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.
Lack of clear differentiation of Vvc Conceptual products
– To increase the profitability and margins on the products, Vvc Conceptual needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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.
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.
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.
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.
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.
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.
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 -
Developing new processes and practices
– Vvc Conceptual 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.
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.
Learning at scale
– Online learning technologies has now opened space for Vvc Conceptual 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.
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.
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.
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.
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.
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.
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.
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.
Leveraging digital technologies
– Vvc Conceptual 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.
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.
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.
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 -
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.
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Note on the Venture Value Chain: A Conceptual Framework for Building Successful New Businesses, Vvc Conceptual 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 Vvc Conceptual with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
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.
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.
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.
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.
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.
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.
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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