F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market
Describes the development of a business model based on "software as a service" (SaaS) for security solution distributed through Internet Service Providers (ISPs). F-Secure disruptively entered a mature business with dominant players by executing an innovative new service model. The case describes the challenges involved in developing and executing the new service model, and offers students opportunities to discuss the evolving challenges the company faces looking forward.
Authors :: Lynda M. Applegate, Robert D. Austin, Kalle Lyytinen, Esko Penttinen
Swot Analysis of "F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market" written by Lynda M. Applegate, Robert D. Austin, Kalle Lyytinen, Esko Penttinen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Saas Service facing as an external strategic factors. Some of the topics covered in F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market case study are - Strategic Management Strategies, Disruptive innovation, IT, Security & privacy and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market casestudy better are - – there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, challanges to central banks by blockchain based private currencies,
technology disruption, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Saas Service, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Saas Service 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 F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market can be done for the following purposes –
1. Strategic planning using facts provided in F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market case study
2. Improving business portfolio management of Saas Service
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 Saas Service
Strengths F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Saas Service in F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market Harvard Business Review case study are -
Diverse revenue streams
– Saas Service is present in almost all the verticals within the industry. This has provided firm in F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Saas Service digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Saas Service 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market firm has clearly differentiated products in the market place. This has enabled Saas Service to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Saas Service to invest into research and development (R&D) and innovation.
Training and development
– Saas Service has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market 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.
Learning organization
- Saas Service 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 Saas Service is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Saas Service 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.
High brand equity
– Saas Service has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Saas Service to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Saas Service 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 Lynda M. Applegate, Robert D. Austin, Kalle Lyytinen, Esko Penttinen 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.
Cross disciplinary teams
– Horizontal connected teams at the Saas Service 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.
Ability to lead change in Innovation & Entrepreneurship field
– Saas Service 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 Saas Service in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Saas Service 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 F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Saas Service is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market are -
Workers concerns about automation
– As automation is fast increasing in the segment, Saas Service 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.
Increasing silos among functional specialists
– The organizational structure of Saas Service is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Saas Service needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Saas Service to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Skills based hiring
– The stress on hiring functional specialists at Saas Service 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.
Capital Spending Reduction
– Even during the low interest decade, Saas Service 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 star products
– The top 2 products and services of the firm as mentioned in the F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market 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 Saas Service has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market, is just above the industry average. Saas Service 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.
Interest costs
– Compare to the competition, Saas Service 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 Saas Service supply chain. Even after few cautionary changes mentioned in the HBR case study - F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Saas Service vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Saas Service is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Saas Service products
– To increase the profitability and margins on the products, Saas Service needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market | 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 F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market are -
Buying journey improvements
– Saas Service can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Saas Service 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.
Loyalty marketing
– Saas Service 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Saas Service can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Saas Service 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 Saas Service to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Saas Service is facing challenges because of the dominance of functional experts in the organization. F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market 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.
Leveraging digital technologies
– Saas Service 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.
Using analytics as competitive advantage
– Saas Service 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 F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Saas Service to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Saas Service to increase its market reach. Saas Service 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Saas Service 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.
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. Saas Service can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Saas Service 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.
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. Saas Service 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. Saas Service 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.
Threats F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market are -
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. Saas Service 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.
Increasing wage structure of Saas Service
– 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 Saas Service.
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 Saas Service in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Consumer confidence and its impact on Saas Service 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.
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. Saas Service can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Saas Service 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Saas Service with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Saas Service 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.
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.
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. Saas Service needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Saas Service 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 F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market .
Shortening product life cycle
– it is one of the major threat that Saas Service is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Saas Service 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. Saas Service can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Weighted SWOT Analysis of F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market 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 F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market 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 F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market 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 F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market 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 F-Secure Corporation: Software as a Service (SaaS) in the Security Solutions Market 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 Saas Service needs to make to build a sustainable competitive advantage.
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