Case Study Description of Slingshot Technology, Inc. Supplement: Partnership Agreements
Slingshot Technology Inc. (STI) is a privately held software start-up founded in 1995 focused on identifying emerging spaces in the IT services industry and partnering with vendors selling promising but unproven technologies in those spaces. The vendors used STI to extend their system development and integration capabilities to deliver on aggressive deadlines, STI gained a steady stream of consulting and engineering work plus opportunities to identify and meet follow-on needs of the vendors' Fortune 1000 customers. Four years after the company was founded with $1,000, revenue had exploded to $1.9 million on the basis of partnerships with enterprise applications development and enterprise application integration vendors. In late 1998, the founder was pondering how to set up an innovative "software factory" to complement the consulting side of the business while ensuring that STI's knowledge assets and intellectual property were protected.
Swot Analysis of "Slingshot Technology, Inc. Supplement: Partnership Agreements" written by Lynda M. Applegate, Elizabeth Collins includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sti Vendors facing as an external strategic factors. Some of the topics covered in Slingshot Technology, Inc. Supplement: Partnership Agreements case study are - Strategic Management Strategies, Innovation, IT, Leadership, Organizational structure, Strategic planning and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Slingshot Technology, Inc. Supplement: Partnership Agreements casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, increasing transportation and logistics costs, there is backlash against globalization,
customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Slingshot Technology, Inc. Supplement: Partnership Agreements
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Slingshot Technology, Inc. Supplement: Partnership Agreements case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sti Vendors, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sti Vendors 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 Slingshot Technology, Inc. Supplement: Partnership Agreements can be done for the following purposes –
1. Strategic planning using facts provided in Slingshot Technology, Inc. Supplement: Partnership Agreements case study
2. Improving business portfolio management of Sti Vendors
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 Sti Vendors
Strengths Slingshot Technology, Inc. Supplement: Partnership Agreements | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sti Vendors in Slingshot Technology, Inc. Supplement: Partnership Agreements Harvard Business Review case study are -
High switching costs
– The high switching costs that Sti Vendors 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 recruit top talent
– Sti Vendors is one of the leading recruiters in the industry. Managers in the Slingshot Technology, Inc. Supplement: Partnership Agreements are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Sti Vendors 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 Sti Vendors is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Slingshot Technology, Inc. Supplement: Partnership Agreements Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Sti Vendors is present in almost all the verticals within the industry. This has provided firm in Slingshot Technology, Inc. Supplement: Partnership Agreements 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.
Operational resilience
– The operational resilience strategy in the Slingshot Technology, Inc. Supplement: Partnership Agreements 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.
Cross disciplinary teams
– Horizontal connected teams at the Sti Vendors 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
– Sti Vendors has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sti Vendors to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Sti Vendors has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sti Vendors has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Superior customer experience
– The customer experience strategy of Sti Vendors in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Innovation & Entrepreneurship field
– Sti Vendors 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 Sti Vendors in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Sti Vendors digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sti Vendors 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.
Innovation driven organization
– Sti Vendors is one of the most innovative firm in sector. Manager in Slingshot Technology, Inc. Supplement: Partnership Agreements Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Slingshot Technology, Inc. Supplement: Partnership Agreements | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Slingshot Technology, Inc. Supplement: Partnership Agreements are -
Aligning sales with marketing
– It come across in the case study Slingshot Technology, Inc. Supplement: Partnership Agreements 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 Slingshot Technology, Inc. Supplement: Partnership Agreements can leverage the sales team experience to cultivate customer relationships as Sti Vendors is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Slingshot Technology, Inc. Supplement: Partnership Agreements, 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Lynda M. Applegate, Elizabeth Collins suggests that, Sti Vendors is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Lack of clear differentiation of Sti Vendors products
– To increase the profitability and margins on the products, Sti Vendors needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Sti Vendors 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 operating costs
– Compare to the competitors, firm in the HBR case study Slingshot Technology, Inc. Supplement: Partnership Agreements 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 Sti Vendors 's lucrative customers.
Need for greater diversity
– Sti Vendors 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Sti Vendors 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.
Interest costs
– Compare to the competition, Sti Vendors 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.
Slow to strategic competitive environment developments
– As Slingshot Technology, Inc. Supplement: Partnership Agreements HBR case study mentions - Sti Vendors 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.
Products dominated business model
– Even though Sti Vendors 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 - Slingshot Technology, Inc. Supplement: Partnership Agreements should strive to include more intangible value offerings along with its core products and services.
Opportunities Slingshot Technology, Inc. Supplement: Partnership Agreements | 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 Slingshot Technology, Inc. Supplement: Partnership Agreements are -
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 Sti Vendors in the consumer business. Now Sti Vendors can target international markets with far fewer capital restrictions requirements than the existing system.
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. Sti Vendors 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. Sti Vendors 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sti Vendors 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. Sti Vendors can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Sti Vendors 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 Slingshot Technology, Inc. Supplement: Partnership Agreements - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sti Vendors to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sti Vendors 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, Slingshot Technology, Inc. Supplement: Partnership Agreements, 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 Sti Vendors has opened avenues for new revenue streams for the organization in the industry. This can help Sti Vendors to build a more holistic ecosystem as suggested in the Slingshot Technology, Inc. Supplement: Partnership Agreements case study. Sti Vendors can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Sti Vendors 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.
Better consumer reach
– The expansion of the 5G network will help Sti Vendors to increase its market reach. Sti Vendors 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.
Building a culture of innovation
– managers at Sti Vendors 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
– Sti Vendors 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sti Vendors can use these opportunities to build new business models that can help the communities that Sti Vendors operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Sti Vendors 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.
Threats Slingshot Technology, Inc. Supplement: Partnership Agreements External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Slingshot Technology, Inc. Supplement: Partnership Agreements are -
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Sti Vendors can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Sti Vendors has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Sti Vendors 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
– Sti Vendors 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.
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. Sti Vendors 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.
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 Sti Vendors.
Stagnating economy with rate increase
– Sti Vendors 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Slingshot Technology, Inc. Supplement: Partnership Agreements, Sti Vendors 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 .
Consumer confidence and its impact on Sti Vendors 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.
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 Sti Vendors business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Sti Vendors
– 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 Sti Vendors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sti Vendors 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.
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 Sti Vendors in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Slingshot Technology, Inc. Supplement: Partnership Agreements 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 Slingshot Technology, Inc. Supplement: Partnership Agreements 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 Slingshot Technology, Inc. Supplement: Partnership Agreements 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 Slingshot Technology, Inc. Supplement: Partnership Agreements 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 Slingshot Technology, Inc. Supplement: Partnership Agreements 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 Sti Vendors needs to make to build a sustainable competitive advantage.