Bill Gates and Steve Jobs SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Bill Gates and Steve Jobs
Bill Gates and Steve Jobs, founders of Microsoft and Apple respectively, have revolutionized the relationship between the individual and computer technology. Once the exclusive domain of academia and research facilities, computers can now be found in every area of business, government, and personal entertainment. Gates and Jobs facilitated this revolution, introducing a generation to the practice of personal computing and laying the foundation for the Information Age. Gates and Jobs turned their curiosity about electronics into a multi-billion dollar industry. From early experiments like the Apple II and DOS to the X-box and the iPod, Gates and Jobs have been committed to pioneering all avenues of technology and distributing them to wide audiences. The journey wasn't without its trials for both CEOs. Gates' antitrust lawsuit of the mid-90s and Jobs' separation from Apple in the late 80s provided challenges to both companies. However, both leaders used these periods of uncertainty as motivation to innovate, taking digital technology into new territory. Pixar Studios, MSNBC, the Xbox, and the phenomena of "infotainment" all arose from the ashes of the corporate controversies. The stories of Bill Gates and Steve Jobs are ultimately one story--it is the story of the personal computer, its software, and its impact upon society. From two college drop-outs based on the West Coast came a revolution which fundamentally influenced the global practice of business.
Swot Analysis of "Bill Gates and Steve Jobs" written by Anthony J. Mayo, Mark Benson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gates Jobs facing as an external strategic factors. Some of the topics covered in Bill Gates and Steve Jobs case study are - Strategic Management Strategies, Business law, Entrepreneurship, IT, Leadership and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Bill Gates and Steve Jobs casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, wage bills are increasing, there is backlash against globalization, increasing energy prices,
supply chains are disrupted by pandemic , there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Bill Gates and Steve Jobs
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bill Gates and Steve Jobs case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gates Jobs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gates Jobs 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 Bill Gates and Steve Jobs can be done for the following purposes –
1. Strategic planning using facts provided in Bill Gates and Steve Jobs case study
2. Improving business portfolio management of Gates Jobs
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 Gates Jobs
Strengths Bill Gates and Steve Jobs | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gates Jobs in Bill Gates and Steve Jobs Harvard Business Review case study are -
Learning organization
- Gates Jobs 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 Gates Jobs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Bill Gates and Steve Jobs Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Bill Gates and Steve Jobs firm has clearly differentiated products in the market place. This has enabled Gates Jobs to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Gates Jobs to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Gates Jobs is one of the leading recruiters in the industry. Managers in the Bill Gates and Steve Jobs are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Gates Jobs in the sector have low bargaining power. Bill Gates and Steve Jobs has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gates Jobs to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Innovation & Entrepreneurship field
– Gates Jobs 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 Gates Jobs in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Bill Gates and Steve Jobs 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 brand equity
– Gates Jobs has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gates Jobs to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Gates Jobs 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.
Training and development
– Gates Jobs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Bill Gates and Steve Jobs 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Gates Jobs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gates Jobs has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Superior customer experience
– The customer experience strategy of Gates Jobs in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Gates Jobs 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 Bill Gates and Steve Jobs - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Bill Gates and Steve Jobs | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bill Gates and Steve Jobs are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Bill Gates and Steve Jobs, in the dynamic environment Gates Jobs has struggled to respond to the nimble upstart competition. Gates Jobs has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Gates Jobs 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. Gates Jobs 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Bill Gates and Steve Jobs, is just above the industry average. Gates Jobs 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.
Need for greater diversity
– Gates Jobs 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.
Low market penetration in new markets
– Outside its home market of Gates Jobs, firm in the HBR case study Bill Gates and Steve Jobs needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Gates Jobs products
– To increase the profitability and margins on the products, Gates Jobs needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Bill Gates and Steve Jobs 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 Gates Jobs has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Bill Gates and Steve Jobs HBR case study mentions - Gates Jobs 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 cash cycle compare to competitors
Gates Jobs 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.
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 Gates Jobs supply chain. Even after few cautionary changes mentioned in the HBR case study - Bill Gates and Steve Jobs, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gates Jobs vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Gates Jobs is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Gates Jobs needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gates Jobs to focus more on services rather than just following the product oriented approach.
Opportunities Bill Gates and Steve Jobs | 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 Bill Gates and Steve Jobs are -
Buying journey improvements
– Gates Jobs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Bill Gates and Steve Jobs 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gates Jobs 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.
Building a culture of innovation
– managers at Gates Jobs 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.
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. Gates Jobs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Gates Jobs to increase its market reach. Gates Jobs 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Gates Jobs 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 Gates Jobs to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Gates Jobs 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gates Jobs 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.
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. Gates Jobs can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Gates Jobs 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.
Learning at scale
– Online learning technologies has now opened space for Gates Jobs 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.
Leveraging digital technologies
– Gates Jobs 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.
Creating value in data economy
– The success of analytics program of Gates Jobs has opened avenues for new revenue streams for the organization in the industry. This can help Gates Jobs to build a more holistic ecosystem as suggested in the Bill Gates and Steve Jobs case study. Gates Jobs can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Bill Gates and Steve Jobs External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bill Gates and Steve Jobs are -
Environmental challenges
– Gates Jobs 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. Gates Jobs can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Regulatory challenges
– Gates Jobs 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Bill Gates and Steve Jobs, Gates Jobs 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 .
Stagnating economy with rate increase
– Gates Jobs 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Gates Jobs in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Gates Jobs.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gates Jobs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Gates Jobs business can come under increasing regulations regarding data privacy, data security, etc.
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.
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. Gates Jobs 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 Gates Jobs 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.
High dependence on third party suppliers
– Gates Jobs 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.
Technology acceleration in Forth Industrial Revolution
– Gates Jobs has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Gates Jobs 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.
Weighted SWOT Analysis of Bill Gates and Steve Jobs 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 Bill Gates and Steve Jobs 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 Bill Gates and Steve Jobs 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 Bill Gates and Steve Jobs 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 Bill Gates and Steve Jobs 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 Gates Jobs needs to make to build a sustainable competitive advantage.