Innovating at AT&T: Partnering to Lead the Broadband Revolution SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Innovating at AT&T: Partnering to Lead the Broadband Revolution
To maximize their effectiveness, color cases should be printed in color.In 2010, the U.S. retail market value for next-generation non-handset wirelessly-enabled devices was just over $1 billion. By 2011 it had grown 1,141% to $13.2 billion and was forecast to reach $24.7 billion in 2015. At the same time, user demand for data was surging with the popularity of mobile Internet, e-mail, and messaging, which left carriers scrambling to increase network capacity. To capture more revenue in the data market, AT&T formed the Emerging Devices Organization (EDO) in 2008 as a distinct internal initiative to identify and partner with manufacturers developing the next generation of mobile broadband devices - from eReaders to tablets, to implanted medical devices, to supply-chain tracking devices, to dog collars and many more. AT&T executives believed that these partnerships would position the company for its next "winning play," following the path it blazed in 2007 with Apple for the iPhone. The EDO was run by Glenn Lurie, who had led the team that partnered with Apple. He knew from experience that to capture the market with the next game-changing device, his team would need to develop a new partnership model, both inside AT&T and with the ecosystem of partners who were poised to lead the global mobile broadband revolution. Doing so within a company the size of AT&T would be tough, but Lurie believed his group was up to the task.
Authors :: Lynda M. Applegate, Phillip Andrews, Kerry Herman
Topics :: Innovation & Entrepreneurship
Tags :: Business models, Entrepreneurship, Growth strategy, Innovation, International business, Joint ventures, Leadership, Leading teams, Organizational culture, Technology, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Innovating at AT&T: Partnering to Lead the Broadband Revolution" written by Lynda M. Applegate, Phillip Andrews, Kerry Herman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Devices Edo facing as an external strategic factors. Some of the topics covered in Innovating at AT&T: Partnering to Lead the Broadband Revolution case study are - Strategic Management Strategies, Business models, Entrepreneurship, Growth strategy, Innovation, International business, Joint ventures, Leadership, Leading teams, Organizational culture, Technology and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Innovating at AT&T: Partnering to Lead the Broadband Revolution casestudy better are - – talent flight as more people leaving formal jobs, there is backlash against globalization, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing commodity prices, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Innovating at AT&T: Partnering to Lead the Broadband Revolution
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Innovating at AT&T: Partnering to Lead the Broadband Revolution case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Devices Edo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Devices Edo 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution can be done for the following purposes –
1. Strategic planning using facts provided in Innovating at AT&T: Partnering to Lead the Broadband Revolution case study
2. Improving business portfolio management of Devices Edo
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 Devices Edo
Strengths Innovating at AT&T: Partnering to Lead the Broadband Revolution | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Devices Edo in Innovating at AT&T: Partnering to Lead the Broadband Revolution Harvard Business Review case study are -
Effective Research and Development (R&D)
– Devices Edo 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Devices Edo in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Innovating at AT&T: Partnering to Lead the Broadband Revolution 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.
Highly skilled collaborators
– Devices Edo 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Devices Edo 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.
Diverse revenue streams
– Devices Edo is present in almost all the verticals within the industry. This has provided firm in Innovating at AT&T: Partnering to Lead the Broadband Revolution 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.
Ability to lead change in Innovation & Entrepreneurship field
– Devices Edo 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 Devices Edo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Devices Edo 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 Devices Edo is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Innovating at AT&T: Partnering to Lead the Broadband Revolution Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Devices Edo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Innovating at AT&T: Partnering to Lead the Broadband Revolution 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.
Ability to recruit top talent
– Devices Edo is one of the leading recruiters in the industry. Managers in the Innovating at AT&T: Partnering to Lead the Broadband Revolution 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 Devices Edo in the sector have low bargaining power. Innovating at AT&T: Partnering to Lead the Broadband Revolution has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Devices Edo to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Devices Edo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Devices Edo 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.
Weaknesses Innovating at AT&T: Partnering to Lead the Broadband Revolution | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Innovating at AT&T: Partnering to Lead the Broadband Revolution are -
Interest costs
– Compare to the competition, Devices Edo 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.
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 Devices Edo supply chain. Even after few cautionary changes mentioned in the HBR case study - Innovating at AT&T: Partnering to Lead the Broadband Revolution, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Devices Edo vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Innovating at AT&T: Partnering to Lead the Broadband Revolution HBR case study mentions - Devices Edo takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Aligning sales with marketing
– It come across in the case study Innovating at AT&T: Partnering to Lead the Broadband Revolution 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution can leverage the sales team experience to cultivate customer relationships as Devices Edo is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Devices Edo is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Innovating at AT&T: Partnering to Lead the Broadband Revolution 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution 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 Devices Edo has relatively successful track record of launching new products.
Products dominated business model
– Even though Devices Edo 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 - Innovating at AT&T: Partnering to Lead the Broadband Revolution should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Devices Edo 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.
Low market penetration in new markets
– Outside its home market of Devices Edo, firm in the HBR case study Innovating at AT&T: Partnering to Lead the Broadband Revolution needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Devices Edo products
– To increase the profitability and margins on the products, Devices Edo needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Innovating at AT&T: Partnering to Lead the Broadband Revolution 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 Devices Edo 's lucrative customers.
Opportunities Innovating at AT&T: Partnering to Lead the Broadband Revolution | 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution are -
Leveraging digital technologies
– Devices Edo 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.
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 Devices Edo 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.
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. Devices Edo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Devices Edo is facing challenges because of the dominance of functional experts in the organization. Innovating at AT&T: Partnering to Lead the Broadband Revolution case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Devices Edo 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. Devices Edo 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.
Building a culture of innovation
– managers at Devices Edo 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Devices Edo 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 Devices Edo to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Devices Edo 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.
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 Devices Edo in the consumer business. Now Devices Edo can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Devices Edo 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Devices Edo to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Devices Edo can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Innovating at AT&T: Partnering to Lead the Broadband Revolution 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.
Manufacturing automation
– Devices Edo can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Better consumer reach
– The expansion of the 5G network will help Devices Edo to increase its market reach. Devices Edo 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.
Threats Innovating at AT&T: Partnering to Lead the Broadband Revolution External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Innovating at AT&T: Partnering to Lead the Broadband Revolution are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Devices Edo with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Devices Edo 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.
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. Devices Edo needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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. Devices Edo can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Devices Edo business can come under increasing regulations regarding data privacy, data security, 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.
Consumer confidence and its impact on Devices Edo 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.
Environmental challenges
– Devices Edo 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. Devices Edo can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Regulatory challenges
– Devices Edo 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.
Increasing wage structure of Devices Edo
– 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 Devices Edo.
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 Devices Edo in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Devices Edo 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution .
Technology acceleration in Forth Industrial Revolution
– Devices Edo has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Devices Edo 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution 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 Innovating at AT&T: Partnering to Lead the Broadband Revolution 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 Devices Edo needs to make to build a sustainable competitive advantage.
