StorageNetworks: Restarting a Public Company (A), Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of StorageNetworks: Restarting a Public Company (A), Spanish Version
Peter Bell, founder and CEO of StorageNetworks, faces the problem of "restarting" a public company by changing its business model from being a storage-services provider to being a storage software developer. The task seems challenging, but surely doable, with $200 million in available cash.
Swot Analysis of "StorageNetworks: Restarting a Public Company (A), Spanish Version" written by Joseph B. Lassiter, Todd Thedinga includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Restarting Storagenetworks facing as an external strategic factors. Some of the topics covered in StorageNetworks: Restarting a Public Company (A), Spanish Version case study are - Strategic Management Strategies, Entrepreneurial finance, Marketing, Product development, Technology and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the StorageNetworks: Restarting a Public Company (A), Spanish Version casestudy better are - – challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization,
central banks are concerned over increasing inflation, wage bills are increasing, etc
Introduction to SWOT Analysis of StorageNetworks: Restarting a Public Company (A), Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in StorageNetworks: Restarting a Public Company (A), Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Restarting Storagenetworks, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Restarting Storagenetworks 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 StorageNetworks: Restarting a Public Company (A), Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in StorageNetworks: Restarting a Public Company (A), Spanish Version case study
2. Improving business portfolio management of Restarting Storagenetworks
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 Restarting Storagenetworks
Strengths StorageNetworks: Restarting a Public Company (A), Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Restarting Storagenetworks in StorageNetworks: Restarting a Public Company (A), Spanish Version Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the StorageNetworks: Restarting a Public Company (A), Spanish Version 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.
Effective Research and Development (R&D)
– Restarting Storagenetworks 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 StorageNetworks: Restarting a Public Company (A), Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Restarting Storagenetworks has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in StorageNetworks: Restarting a Public Company (A), Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Restarting Storagenetworks in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Restarting Storagenetworks 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Restarting Storagenetworks digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Restarting Storagenetworks 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.
Successful track record of launching new products
– Restarting Storagenetworks has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Restarting Storagenetworks 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– StorageNetworks: Restarting a Public Company (A), Spanish Version firm has clearly differentiated products in the market place. This has enabled Restarting Storagenetworks to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Restarting Storagenetworks to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Restarting Storagenetworks is one of the leading recruiters in the industry. Managers in the StorageNetworks: Restarting a Public Company (A), Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Restarting Storagenetworks 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.
Learning organization
- Restarting Storagenetworks 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 Restarting Storagenetworks is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in StorageNetworks: Restarting a Public Company (A), Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Restarting Storagenetworks has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in StorageNetworks: Restarting a Public Company (A), Spanish Version Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses StorageNetworks: Restarting a Public Company (A), Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of StorageNetworks: Restarting a Public Company (A), Spanish Version are -
Slow decision making process
– As mentioned earlier in the report, Restarting Storagenetworks 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. Restarting Storagenetworks 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.
Increasing silos among functional specialists
– The organizational structure of Restarting Storagenetworks is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Restarting Storagenetworks needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Restarting Storagenetworks to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Joseph B. Lassiter, Todd Thedinga suggests that, Restarting Storagenetworks 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.
Need for greater diversity
– Restarting Storagenetworks 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 StorageNetworks: Restarting a Public Company (A), Spanish Version HBR case study mentions - Restarting Storagenetworks 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Restarting Storagenetworks 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.
Aligning sales with marketing
– It come across in the case study StorageNetworks: Restarting a Public Company (A), Spanish Version 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 StorageNetworks: Restarting a Public Company (A), Spanish Version can leverage the sales team experience to cultivate customer relationships as Restarting Storagenetworks is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Restarting Storagenetworks 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Restarting Storagenetworks is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study StorageNetworks: Restarting a Public Company (A), Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the StorageNetworks: Restarting a Public Company (A), Spanish Version 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 Restarting Storagenetworks has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Restarting Storagenetworks 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.
Opportunities StorageNetworks: Restarting a Public Company (A), Spanish Version | 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 StorageNetworks: Restarting a Public Company (A), Spanish Version are -
Creating value in data economy
– The success of analytics program of Restarting Storagenetworks has opened avenues for new revenue streams for the organization in the industry. This can help Restarting Storagenetworks to build a more holistic ecosystem as suggested in the StorageNetworks: Restarting a Public Company (A), Spanish Version case study. Restarting Storagenetworks can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Restarting Storagenetworks in the consumer business. Now Restarting Storagenetworks can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Restarting Storagenetworks 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Restarting Storagenetworks 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.
Better consumer reach
– The expansion of the 5G network will help Restarting Storagenetworks to increase its market reach. Restarting Storagenetworks 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Restarting Storagenetworks 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, StorageNetworks: Restarting a Public Company (A), Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Restarting Storagenetworks can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. StorageNetworks: Restarting a Public Company (A), Spanish Version 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.
Leveraging digital technologies
– Restarting Storagenetworks 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.
Learning at scale
– Online learning technologies has now opened space for Restarting Storagenetworks 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.
Developing new processes and practices
– Restarting Storagenetworks 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Restarting Storagenetworks 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. Restarting Storagenetworks can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Restarting Storagenetworks 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.
Threats StorageNetworks: Restarting a Public Company (A), Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study StorageNetworks: Restarting a Public Company (A), Spanish Version are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Restarting Storagenetworks can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study StorageNetworks: Restarting a Public Company (A), Spanish Version .
Consumer confidence and its impact on Restarting Storagenetworks 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.
Shortening product life cycle
– it is one of the major threat that Restarting Storagenetworks is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study StorageNetworks: Restarting a Public Company (A), Spanish Version, Restarting Storagenetworks 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 .
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 Restarting Storagenetworks in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Environmental challenges
– Restarting Storagenetworks 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. Restarting Storagenetworks can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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.
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. Restarting Storagenetworks can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Restarting Storagenetworks with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Restarting Storagenetworks.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Restarting Storagenetworks 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.
Technology acceleration in Forth Industrial Revolution
– Restarting Storagenetworks has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Restarting Storagenetworks 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 StorageNetworks: Restarting a Public Company (A), Spanish Version 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 StorageNetworks: Restarting a Public Company (A), Spanish Version 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 StorageNetworks: Restarting a Public Company (A), Spanish Version 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 StorageNetworks: Restarting a Public Company (A), Spanish Version 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 StorageNetworks: Restarting a Public Company (A), Spanish Version 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 Restarting Storagenetworks needs to make to build a sustainable competitive advantage.