Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn
An Estonian success story, this case examines why Skype's Scandinavian founders chose Tallinn to establish their hi-tech start-up. We investigate the factors that contributed to their choice of location and the subsequent success of the venture. Skype's journey is discussed against the backdrop of post-Soviet Estonia's economic and industrial resurrection.
Swot Analysis of "Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn" written by Sami Mahroum, Elizabeth Scott includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tallinn Estonian facing as an external strategic factors. Some of the topics covered in Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn case study are - Strategic Management Strategies, Economics, Entrepreneurship, Influence, Innovation, Technology and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn casestudy better are - – supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, cloud computing is disrupting traditional business models,
wage bills are increasing, increasing energy prices, etc
Introduction to SWOT Analysis of Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tallinn Estonian, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tallinn Estonian 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 Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn can be done for the following purposes –
1. Strategic planning using facts provided in Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn case study
2. Improving business portfolio management of Tallinn Estonian
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 Tallinn Estonian
Strengths Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tallinn Estonian in Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn Harvard Business Review case study are -
Ability to lead change in Innovation & Entrepreneurship field
– Tallinn Estonian 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 Tallinn Estonian in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn 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.
High switching costs
– The high switching costs that Tallinn Estonian has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Diverse revenue streams
– Tallinn Estonian is present in almost all the verticals within the industry. This has provided firm in Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn 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
- Tallinn Estonian 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 Tallinn Estonian is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Tallinn Estonian in the sector have low bargaining power. Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tallinn Estonian to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Tallinn Estonian has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tallinn Estonian to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Tallinn Estonian 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 Sami Mahroum, Elizabeth Scott 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.
Organizational Resilience of Tallinn Estonian
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tallinn Estonian does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn firm has clearly differentiated products in the market place. This has enabled Tallinn Estonian to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Tallinn Estonian to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Tallinn Estonian 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 Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Tallinn Estonian has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tallinn Estonian 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.
Weaknesses Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn, in the dynamic environment Tallinn Estonian has struggled to respond to the nimble upstart competition. Tallinn Estonian has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Tallinn Estonian 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.
High cash cycle compare to competitors
Tallinn Estonian 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.
Aligning sales with marketing
– It come across in the case study Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn 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 Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn can leverage the sales team experience to cultivate customer relationships as Tallinn Estonian is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn 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 Tallinn Estonian has relatively successful track record of launching new products.
Need for greater diversity
– Tallinn Estonian 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.
Increasing silos among functional specialists
– The organizational structure of Tallinn Estonian is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Tallinn Estonian needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tallinn Estonian to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Tallinn Estonian 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.
No frontier risks strategy
– After analyzing the HBR case study Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn, 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tallinn Estonian is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Tallinn Estonian, firm in the HBR case study Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn | 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 Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn are -
Developing new processes and practices
– Tallinn Estonian 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.
Leveraging digital technologies
– Tallinn Estonian 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.
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. Tallinn Estonian can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Tallinn Estonian can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tallinn Estonian 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, Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Tallinn Estonian 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.
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. Tallinn Estonian 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. Tallinn Estonian 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.
Loyalty marketing
– Tallinn Estonian 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.
Building a culture of innovation
– managers at Tallinn Estonian 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tallinn Estonian 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tallinn Estonian can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Tallinn Estonian in the consumer business. Now Tallinn Estonian can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tallinn Estonian can use these opportunities to build new business models that can help the communities that Tallinn Estonian operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Threats Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tallinn Estonian with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn, Tallinn Estonian 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 .
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. Tallinn Estonian can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Tallinn Estonian 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.
Regulatory challenges
– Tallinn Estonian 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.
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. Tallinn Estonian needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Tallinn Estonian 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 acceleration in Forth Industrial Revolution
– Tallinn Estonian has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Tallinn Estonian 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.
Shortening product life cycle
– it is one of the major threat that Tallinn Estonian is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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 Tallinn Estonian 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 Tallinn Estonian in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Increasing wage structure of Tallinn Estonian
– 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 Tallinn Estonian.
Weighted SWOT Analysis of Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn 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 Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn 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 Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn 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 Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn 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 Skype: A Case Study of How Skype Derived "Place Surplus" in the Estonian Capital of Tallinn 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 Tallinn Estonian needs to make to build a sustainable competitive advantage.
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