PacificLink iMedia: Designing an Internet Business SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of PacificLink iMedia: Designing an Internet Business
PacificLink iMedia was a Hong Kong-based Internet marketing company that specialized in web design using Flash technology. The company had grown six-fold since its inception eighteen months ago. The directors of the company anticipated that the company would double in size in the next six months, and they were considering moving into three new markets, as well as into new business areas. The concepts of competitive advantage in the Internet industry and the structure of this industry are introduced from the perspective of a company that provides business services.
Swot Analysis of "PacificLink iMedia: Designing an Internet Business" written by Andrew Delios includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pacificlink Imedia facing as an external strategic factors. Some of the topics covered in PacificLink iMedia: Designing an Internet Business case study are - Strategic Management Strategies, International business, Internet and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the PacificLink iMedia: Designing an Internet Business casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, increasing energy prices,
there is backlash against globalization, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of PacificLink iMedia: Designing an Internet Business
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in PacificLink iMedia: Designing an Internet Business case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pacificlink Imedia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pacificlink Imedia 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 PacificLink iMedia: Designing an Internet Business can be done for the following purposes –
1. Strategic planning using facts provided in PacificLink iMedia: Designing an Internet Business case study
2. Improving business portfolio management of Pacificlink Imedia
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 Pacificlink Imedia
Strengths PacificLink iMedia: Designing an Internet Business | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pacificlink Imedia in PacificLink iMedia: Designing an Internet Business Harvard Business Review case study are -
Analytics focus
– Pacificlink Imedia is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Andrew Delios can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High brand equity
– Pacificlink Imedia has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pacificlink Imedia to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Pacificlink Imedia is present in almost all the verticals within the industry. This has provided firm in PacificLink iMedia: Designing an Internet Business 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 PacificLink iMedia: Designing an Internet Business 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.
Low bargaining power of suppliers
– Suppliers of Pacificlink Imedia in the sector have low bargaining power. PacificLink iMedia: Designing an Internet Business has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pacificlink Imedia to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Innovation & Entrepreneurship field
– Pacificlink Imedia 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 Pacificlink Imedia in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Pacificlink Imedia in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Pacificlink Imedia has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pacificlink Imedia 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.
Organizational Resilience of Pacificlink Imedia
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Pacificlink Imedia does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Pacificlink Imedia 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 PacificLink iMedia: Designing an Internet Business HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Pacificlink Imedia 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 PacificLink iMedia: Designing an Internet Business - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Pacificlink Imedia is one of the leading recruiters in the industry. Managers in the PacificLink iMedia: Designing an Internet Business are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses PacificLink iMedia: Designing an Internet Business | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of PacificLink iMedia: Designing an Internet Business are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study PacificLink iMedia: Designing an Internet Business, is just above the industry average. Pacificlink Imedia 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
– Pacificlink Imedia 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.
Products dominated business model
– Even though Pacificlink Imedia 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 - PacificLink iMedia: Designing an Internet Business should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Pacificlink Imedia, firm in the HBR case study PacificLink iMedia: Designing an Internet Business needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Pacificlink Imedia has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the PacificLink iMedia: Designing an Internet Business 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 Pacificlink Imedia has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Pacificlink Imedia 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study PacificLink iMedia: Designing an Internet Business, in the dynamic environment Pacificlink Imedia has struggled to respond to the nimble upstart competition. Pacificlink Imedia has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Pacificlink Imedia is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Pacificlink Imedia needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pacificlink Imedia to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Pacificlink Imedia 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study PacificLink iMedia: Designing an Internet Business, it seems that the employees of Pacificlink Imedia don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Opportunities PacificLink iMedia: Designing an Internet Business | 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 PacificLink iMedia: Designing an Internet Business are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pacificlink Imedia 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.
Leveraging digital technologies
– Pacificlink Imedia 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.
Developing new processes and practices
– Pacificlink Imedia 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.
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. Pacificlink Imedia 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
– Pacificlink Imedia 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 PacificLink iMedia: Designing an Internet Business - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pacificlink Imedia to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pacificlink Imedia can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pacificlink Imedia is facing challenges because of the dominance of functional experts in the organization. PacificLink iMedia: Designing an Internet Business 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.
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. Pacificlink Imedia can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Pacificlink Imedia has opened avenues for new revenue streams for the organization in the industry. This can help Pacificlink Imedia to build a more holistic ecosystem as suggested in the PacificLink iMedia: Designing an Internet Business case study. Pacificlink Imedia 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 Pacificlink Imedia 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.
Buying journey improvements
– Pacificlink Imedia can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. PacificLink iMedia: Designing an Internet Business 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.
Building a culture of innovation
– managers at Pacificlink Imedia 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.
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 Pacificlink Imedia in the consumer business. Now Pacificlink Imedia can target international markets with far fewer capital restrictions requirements than the existing system.
Threats PacificLink iMedia: Designing an Internet Business External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study PacificLink iMedia: Designing an Internet Business are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pacificlink Imedia 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 PacificLink iMedia: Designing an Internet Business .
Technology acceleration in Forth Industrial Revolution
– Pacificlink Imedia has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Pacificlink Imedia 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study PacificLink iMedia: Designing an Internet Business, Pacificlink Imedia 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 .
Environmental challenges
– Pacificlink Imedia 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. Pacificlink Imedia can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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.
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. Pacificlink Imedia 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.
Shortening product life cycle
– it is one of the major threat that Pacificlink Imedia is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Pacificlink Imedia needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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 Pacificlink Imedia in the Innovation & Entrepreneurship sector and impact the bottomline 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. Pacificlink Imedia can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pacificlink Imedia 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 Pacificlink Imedia.
Weighted SWOT Analysis of PacificLink iMedia: Designing an Internet Business 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 PacificLink iMedia: Designing an Internet Business 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 PacificLink iMedia: Designing an Internet Business 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 PacificLink iMedia: Designing an Internet Business 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 PacificLink iMedia: Designing an Internet Business 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 Pacificlink Imedia needs to make to build a sustainable competitive advantage.