East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts
This is a Darden case study.This is a minicase, one of 10 in a set of short cases written to illustrate the business benefits companies realize through adopting sustainable business strategies. This minicase describes the creative and innovative ways sustainability goals were integrated into a development project called Northstar Tahoe, creating a model for real estate and ski resort design to protect community and environmental interests while contributing to the company's business success and brand recognition.
Swot Analysis of "East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts" written by Andrea Larson, Jeff York includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Minicase Ski facing as an external strategic factors. Some of the topics covered in East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts case study are - Strategic Management Strategies, Entrepreneurship, Growth strategy, Innovation, Marketing, Sustainability, Technology and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts casestudy better are - – wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , increasing transportation and logistics costs,
talent flight as more people leaving formal jobs, geopolitical disruptions, etc
Introduction to SWOT Analysis of East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Minicase Ski, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Minicase Ski 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 East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts can be done for the following purposes –
1. Strategic planning using facts provided in East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts case study
2. Improving business portfolio management of Minicase Ski
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 Minicase Ski
Strengths East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Minicase Ski in East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts Harvard Business Review case study are -
Effective Research and Development (R&D)
– Minicase Ski 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 East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Minicase Ski has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts 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.
High brand equity
– Minicase Ski has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Minicase Ski to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Minicase Ski 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 Andrea Larson, Jeff York 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.
Strong track record of project management
– Minicase Ski is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Minicase Ski 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.
Operational resilience
– The operational resilience strategy in the East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts 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.
High switching costs
– The high switching costs that Minicase Ski 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.
Ability to lead change in Innovation & Entrepreneurship field
– Minicase Ski 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 Minicase Ski in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Minicase Ski is one of the leading recruiters in the industry. Managers in the East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Minicase Ski
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Minicase Ski does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts firm has clearly differentiated products in the market place. This has enabled Minicase Ski to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Minicase Ski to invest into research and development (R&D) and innovation.
Weaknesses East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts are -
Workers concerns about automation
– As automation is fast increasing in the segment, Minicase Ski 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Minicase Ski is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Minicase Ski 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.
High cash cycle compare to competitors
Minicase Ski 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.
Interest costs
– Compare to the competition, Minicase Ski has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Products dominated business model
– Even though Minicase Ski 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 - East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts 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 Minicase Ski has relatively successful track record of launching new products.
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 Minicase Ski supply chain. Even after few cautionary changes mentioned in the HBR case study - East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Minicase Ski vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Minicase Ski 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 strategic competitive environment developments
– As East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts HBR case study mentions - Minicase Ski 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts, is just above the industry average. Minicase Ski 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.
Opportunities East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts | 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 East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts are -
Learning at scale
– Online learning technologies has now opened space for Minicase Ski 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Minicase Ski can use these opportunities to build new business models that can help the communities that Minicase Ski operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Minicase Ski 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. Minicase Ski can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Minicase Ski in the consumer business. Now Minicase Ski can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Minicase Ski 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.
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. Minicase Ski 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. Minicase Ski 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.
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. Minicase Ski can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Minicase Ski 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.
Building a culture of innovation
– managers at Minicase Ski 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.
Loyalty marketing
– Minicase Ski 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.
Using analytics as competitive advantage
– Minicase Ski 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 East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Minicase Ski to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Minicase Ski has opened avenues for new revenue streams for the organization in the industry. This can help Minicase Ski to build a more holistic ecosystem as suggested in the East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts case study. Minicase Ski can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Minicase Ski 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.
Shortening product life cycle
– it is one of the major threat that Minicase Ski is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Minicase Ski needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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 Minicase Ski.
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. Minicase Ski can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Minicase Ski with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Minicase Ski
– 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 Minicase Ski.
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.
Technology acceleration in Forth Industrial Revolution
– Minicase Ski has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Minicase Ski 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.
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 Minicase Ski in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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 Minicase Ski business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Minicase Ski 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.
Weighted SWOT Analysis of East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts 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 East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts 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 East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts 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 East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts 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 East West Partners: Sustainability Strategy in Real Estate Development and Ski Resorts 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 Minicase Ski needs to make to build a sustainable competitive advantage.
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