Case Study Description of Securicor Wireless Networks: February 1996
Securicor Wireless (SWN) sold software products to wireless telephone carriers. The company was incorporated in January of 1995 as a 40%-owned subsidiary of Securicor Telesciences (STI), itself a wholly-owned subsidiary of British security giant Securicor PLC. Just over a year later, in February of 1996, SWN had the opportunity to merge with STI, creating a 70%-owned subsidiary of Securicor PLC and bringing it further under the umbrella of the British conglomerate. In presenting the events leading up to this decision, this case examines the dynamics of starting up a company with a large corporate investor, including the interplay between such a corporate partner and their traditional venture capitalist co-investors. Also touches on issues of corporate culture and differences in attitudes between U.S.-and U.K.-based companies/investors.
Swot Analysis of "Securicor Wireless Networks: February 1996" written by G. Felda Hardymon, Bill Wasik includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Securicor Swn facing as an external strategic factors. Some of the topics covered in Securicor Wireless Networks: February 1996 case study are - Strategic Management Strategies, Organizational culture, Technology, Venture capital and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Securicor Wireless Networks: February 1996 casestudy better are - – supply chains are disrupted by pandemic , wage bills are increasing, central banks are concerned over increasing inflation, geopolitical disruptions, increasing commodity prices, increasing household debt because of falling income levels, there is backlash against globalization,
challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Securicor Wireless Networks: February 1996
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Securicor Wireless Networks: February 1996 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Securicor Swn, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Securicor Swn 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 Securicor Wireless Networks: February 1996 can be done for the following purposes –
1. Strategic planning using facts provided in Securicor Wireless Networks: February 1996 case study
2. Improving business portfolio management of Securicor Swn
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 Securicor Swn
Strengths Securicor Wireless Networks: February 1996 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Securicor Swn in Securicor Wireless Networks: February 1996 Harvard Business Review case study are -
Ability to recruit top talent
– Securicor Swn is one of the leading recruiters in the industry. Managers in the Securicor Wireless Networks: February 1996 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Securicor Swn has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Securicor Swn to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Securicor Swn 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
– Securicor Swn 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 Securicor Swn 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
– Securicor Wireless Networks: February 1996 firm has clearly differentiated products in the market place. This has enabled Securicor Swn to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Securicor Swn to invest into research and development (R&D) and innovation.
Strong track record of project management
– Securicor Swn is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Securicor Swn 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.
Superior customer experience
– The customer experience strategy of Securicor Swn in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Securicor Swn digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Securicor Swn 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.
Highly skilled collaborators
– Securicor Swn 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 Securicor Wireless Networks: February 1996 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Securicor Swn is present in almost all the verticals within the industry. This has provided firm in Securicor Wireless Networks: February 1996 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.
Learning organization
- Securicor Swn 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 Securicor Swn is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Securicor Wireless Networks: February 1996 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Securicor Wireless Networks: February 1996 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Securicor Wireless Networks: February 1996 are -
Increasing silos among functional specialists
– The organizational structure of Securicor Swn is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Securicor Swn needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Securicor Swn to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Securicor Wireless Networks: February 1996, is just above the industry average. Securicor Swn 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Securicor Wireless Networks: February 1996 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 Securicor Swn 's lucrative customers.
Products dominated business model
– Even though Securicor Swn 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 - Securicor Wireless Networks: February 1996 should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Securicor Swn needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Aligning sales with marketing
– It come across in the case study Securicor Wireless Networks: February 1996 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 Securicor Wireless Networks: February 1996 can leverage the sales team experience to cultivate customer relationships as Securicor Swn is planning to shift buying processes online.
Need for greater diversity
– Securicor Swn 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.
No frontier risks strategy
– After analyzing the HBR case study Securicor Wireless Networks: February 1996, 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.
High bargaining power of channel partners
– Because of the regulatory requirements, G. Felda Hardymon, Bill Wasik suggests that, Securicor Swn 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.
High cash cycle compare to competitors
Securicor Swn 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Securicor Swn is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Securicor Wireless Networks: February 1996 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Securicor Wireless Networks: February 1996 | 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 Securicor Wireless Networks: February 1996 are -
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 Securicor Swn 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.
Loyalty marketing
– Securicor Swn 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Securicor Swn can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Securicor Wireless Networks: February 1996, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Securicor Swn 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 Securicor Swn to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Securicor Swn to increase its market reach. Securicor Swn 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Securicor Swn can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Securicor Swn can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Securicor Swn 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. Securicor Swn 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.
Developing new processes and practices
– Securicor Swn 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.
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. Securicor Swn can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Securicor Swn 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.
Using analytics as competitive advantage
– Securicor Swn 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 Securicor Wireless Networks: February 1996 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Securicor Swn to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Securicor Swn can use these opportunities to build new business models that can help the communities that Securicor Swn operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Threats Securicor Wireless Networks: February 1996 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Securicor Wireless Networks: February 1996 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. Securicor Swn 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, Securicor Swn 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 Securicor Wireless Networks: February 1996 .
High dependence on third party suppliers
– Securicor Swn 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.
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. Securicor Swn can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Securicor Swn
– 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 Securicor Swn.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Securicor Swn 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.
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.
Shortening product life cycle
– it is one of the major threat that Securicor Swn is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Securicor Swn.
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 Securicor Swn business can come under increasing regulations regarding data privacy, data security, etc.
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 Securicor Swn in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Consumer confidence and its impact on Securicor Swn 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.
Stagnating economy with rate increase
– Securicor Swn 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.
Weighted SWOT Analysis of Securicor Wireless Networks: February 1996 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 Securicor Wireless Networks: February 1996 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 Securicor Wireless Networks: February 1996 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 Securicor Wireless Networks: February 1996 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 Securicor Wireless Networks: February 1996 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 Securicor Swn needs to make to build a sustainable competitive advantage.