Business Innovation: The MTR's eInstant Bonus Project SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Business Innovation: The MTR's eInstant Bonus Project
The "eInstant Bonus" was an interactive advertising concept designed internally by the Mass Transit Railway Corp. Ltd. (MTR) in Hong Kong. Under this scheme, special discount offers from merchants/advertisers were displayed on a 42-inch Plasma TV in the form of a 10-second static slide or a 30-second TV commercial. Passengers could select items on the touch-screen monitor and a discount coupon would be issued. The discount coupon could then be redeemed for products or services purchased at the merchant's premises. For each coupon issued, a transaction fee of $1.00 would be deducted from the passenger's Octopus Card. This case illustrates the use of information technology by a large corporation for strategic alignment and value creation. Multimedia kiosks are a new phenomenon of the 1990s to provide personalized and interactive customer service on-site. Discussion is provided on the concepts and applications of kiosks for a customer service organization. The MTR eInstant Bonus project is considered a successful innovation by various measures. Also provides an understanding of innovation adoption and diffusion, specifically, how the attributes of the innovation relate to its rate of adoption and diffusion.
Swot Analysis of "Business Innovation: The MTR's eInstant Bonus Project" written by Ali F. Farhoomand, Phoebe Ho includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Einstant Coupon facing as an external strategic factors. Some of the topics covered in Business Innovation: The MTR's eInstant Bonus Project case study are - Strategic Management Strategies, IT and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Business Innovation: The MTR's eInstant Bonus Project casestudy better are - – cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion,
geopolitical disruptions, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Business Innovation: The MTR's eInstant Bonus Project
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Business Innovation: The MTR's eInstant Bonus Project case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Einstant Coupon, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Einstant Coupon 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 Business Innovation: The MTR's eInstant Bonus Project can be done for the following purposes –
1. Strategic planning using facts provided in Business Innovation: The MTR's eInstant Bonus Project case study
2. Improving business portfolio management of Einstant Coupon
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 Einstant Coupon
Strengths Business Innovation: The MTR's eInstant Bonus Project | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Einstant Coupon in Business Innovation: The MTR's eInstant Bonus Project Harvard Business Review case study are -
Innovation driven organization
– Einstant Coupon is one of the most innovative firm in sector. Manager in Business Innovation: The MTR's eInstant Bonus Project Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Einstant Coupon 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.
Operational resilience
– The operational resilience strategy in the Business Innovation: The MTR's eInstant Bonus Project 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 Einstant Coupon in the sector have low bargaining power. Business Innovation: The MTR's eInstant Bonus Project has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Einstant Coupon to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Einstant Coupon 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.
Organizational Resilience of Einstant Coupon
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Einstant Coupon does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Einstant Coupon digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Einstant Coupon 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.
Diverse revenue streams
– Einstant Coupon is present in almost all the verticals within the industry. This has provided firm in Business Innovation: The MTR's eInstant Bonus Project 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.
Effective Research and Development (R&D)
– Einstant Coupon 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 Business Innovation: The MTR's eInstant Bonus Project - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Einstant Coupon is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Innovation & Entrepreneurship field
– Einstant Coupon 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 Einstant Coupon in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Business Innovation: The MTR's eInstant Bonus Project firm has clearly differentiated products in the market place. This has enabled Einstant Coupon to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Einstant Coupon to invest into research and development (R&D) and innovation.
Weaknesses Business Innovation: The MTR's eInstant Bonus Project | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Business Innovation: The MTR's eInstant Bonus Project are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Business Innovation: The MTR's eInstant Bonus Project, it seems that the employees of Einstant Coupon 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Ali F. Farhoomand, Phoebe Ho suggests that, Einstant Coupon 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.
Capital Spending Reduction
– Even during the low interest decade, Einstant Coupon 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.
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 Einstant Coupon supply chain. Even after few cautionary changes mentioned in the HBR case study - Business Innovation: The MTR's eInstant Bonus Project, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Einstant Coupon vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Einstant Coupon is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Einstant Coupon needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Einstant Coupon to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Einstant Coupon products
– To increase the profitability and margins on the products, Einstant Coupon needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Business Innovation: The MTR's eInstant Bonus Project, in the dynamic environment Einstant Coupon has struggled to respond to the nimble upstart competition. Einstant Coupon has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Einstant Coupon 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. Einstant Coupon 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.
High cash cycle compare to competitors
Einstant Coupon 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.
Slow to strategic competitive environment developments
– As Business Innovation: The MTR's eInstant Bonus Project HBR case study mentions - Einstant Coupon 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.
Skills based hiring
– The stress on hiring functional specialists at Einstant Coupon 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.
Opportunities Business Innovation: The MTR's eInstant Bonus Project | 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 Business Innovation: The MTR's eInstant Bonus Project are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Einstant Coupon 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 Einstant Coupon to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Einstant Coupon can use these opportunities to build new business models that can help the communities that Einstant Coupon operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Developing new processes and practices
– Einstant Coupon 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.
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 Einstant Coupon 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.
Manufacturing automation
– Einstant Coupon 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.
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 Einstant Coupon in the consumer business. Now Einstant Coupon can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Einstant Coupon 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.
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. Einstant Coupon 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. Einstant Coupon 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.
Learning at scale
– Online learning technologies has now opened space for Einstant Coupon 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.
Using analytics as competitive advantage
– Einstant Coupon 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 Business Innovation: The MTR's eInstant Bonus Project - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Einstant Coupon to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Einstant Coupon can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Einstant Coupon 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Einstant Coupon is facing challenges because of the dominance of functional experts in the organization. Business Innovation: The MTR's eInstant Bonus Project 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.
Threats Business Innovation: The MTR's eInstant Bonus Project External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Business Innovation: The MTR's eInstant Bonus Project are -
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. Einstant Coupon needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Einstant Coupon has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Einstant Coupon 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.
High dependence on third party suppliers
– Einstant Coupon high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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 Einstant Coupon.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Einstant Coupon 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 Einstant Coupon in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Einstant Coupon is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Einstant Coupon
– 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 Einstant Coupon.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Einstant Coupon 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 Business Innovation: The MTR's eInstant Bonus Project .
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. Einstant Coupon can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Einstant Coupon needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Innovation & Entrepreneurship industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Business Innovation: The MTR's eInstant Bonus Project, Einstant Coupon 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 Einstant Coupon 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.
Weighted SWOT Analysis of Business Innovation: The MTR's eInstant Bonus Project 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 Business Innovation: The MTR's eInstant Bonus Project 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 Business Innovation: The MTR's eInstant Bonus Project 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 Business Innovation: The MTR's eInstant Bonus Project 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 Business Innovation: The MTR's eInstant Bonus Project 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 Einstant Coupon needs to make to build a sustainable competitive advantage.