Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry
This case B cannot be taught as a stand-alone case, but is a direct continuation of the FocusCase "Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry" [EFC-1-E]. This second part illustrates the decisions the firm took during and after their near-death crisis with regard to financing, market focus, product (re-)development, HR issues, positioning and the overall survival strategy of the firm, and the consequences this had. Developments are described over several years, up until the firm achieved an exit through a trade-sale to a large corporation. The video (EV-5) provides complimentary material.
Authors :: Julia Prats Moreno, Marc Sosna, Dave Darsch
Swot Analysis of "Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry" written by Julia Prats Moreno, Marc Sosna, Dave Darsch includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Argo Coasting facing as an external strategic factors. Some of the topics covered in Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry case study are - Strategic Management Strategies, Crisis management, Financial management, Growth strategy, Reorganization and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry casestudy better are - – central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, there is increasing trade war between United States & China, increasing household debt because of falling income levels,
increasing energy prices, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Argo Coasting, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Argo Coasting 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 Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry can be done for the following purposes –
1. Strategic planning using facts provided in Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry case study
2. Improving business portfolio management of Argo Coasting
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 Argo Coasting
Strengths Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Argo Coasting in Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Argo Coasting in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Argo Coasting is present in almost all the verticals within the industry. This has provided firm in Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry 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 Argo Coasting digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Argo Coasting 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.
Innovation driven organization
– Argo Coasting is one of the most innovative firm in sector. Manager in Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Argo Coasting 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 Argo Coasting is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Argo Coasting 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 Julia Prats Moreno, Marc Sosna, Dave Darsch can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High switching costs
– The high switching costs that Argo Coasting 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.
Cross disciplinary teams
– Horizontal connected teams at the Argo Coasting 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.
High brand equity
– Argo Coasting has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Argo Coasting to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry firm has clearly differentiated products in the market place. This has enabled Argo Coasting to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Argo Coasting to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Argo Coasting has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Argo Coasting 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.
Highly skilled collaborators
– Argo Coasting 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 Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry are -
Need for greater diversity
– Argo Coasting 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.
Skills based hiring
– The stress on hiring functional specialists at Argo Coasting has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry 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 Argo Coasting has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Argo Coasting 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. Argo Coasting 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.
Slow to strategic competitive environment developments
– As Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry HBR case study mentions - Argo Coasting 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.
Products dominated business model
– Even though Argo Coasting 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 - Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Argo Coasting products
– To increase the profitability and margins on the products, Argo Coasting needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry 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 Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry can leverage the sales team experience to cultivate customer relationships as Argo Coasting is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Argo Coasting, firm in the HBR case study Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Argo Coasting 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 cash cycle compare to competitors
Argo Coasting 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.
Opportunities Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry | 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 Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry 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 Argo Coasting 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.
Learning at scale
– Online learning technologies has now opened space for Argo Coasting 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.
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. Argo Coasting can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Argo Coasting 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Argo Coasting 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, Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Argo Coasting has opened avenues for new revenue streams for the organization in the industry. This can help Argo Coasting to build a more holistic ecosystem as suggested in the Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry case study. Argo Coasting can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Argo Coasting can use these opportunities to build new business models that can help the communities that Argo Coasting operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Using analytics as competitive advantage
– Argo Coasting 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 Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Argo Coasting to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Argo Coasting 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 Argo Coasting to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Argo Coasting 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.
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. Argo Coasting 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. Argo Coasting 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
– Argo Coasting 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.
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. Argo Coasting can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Argo Coasting 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.
Regulatory challenges
– Argo Coasting 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.
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 Argo Coasting business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Argo Coasting 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. Argo Coasting can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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. Argo Coasting can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Argo Coasting has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Argo Coasting 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry, Argo Coasting 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 .
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. Argo Coasting needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Argo Coasting 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
– Argo Coasting 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.
Stagnating economy with rate increase
– Argo Coasting 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 Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry 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 Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry 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 Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry 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 Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry 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 Argo Interactive (B): Surviving in the Roller-Coasting Mobile Industry 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 Argo Coasting needs to make to build a sustainable competitive advantage.