Movile (A): Going Global - Is Silicon Valley the Next Stop? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Movile (A): Going Global - Is Silicon Valley the Next Stop?
The (A) case described the early days of Movile, a Brazilian mobile phone company, and debated the decision to open an office in Silicon Valley. The case went into the history of the firm and the mobile phone industry in Brazil. It discussed how the firm grew throughout Latin America through acquisitions and failed in earlier attempts to expand organically. The (A) case also outlined the unique culture of the firm, which blended a highly innovative culture with Movile's focus on achieving targets and results. The question of whether to expand into Silicon Valley raised the issue of the importance of an entrepreneurial ecosystem in the growth trajectory of a firm. This issue was particularly significant at this point in Movile's life cycle when it needed to evolve from being a feature phone business to diversifying to include new smartphone technologies in their product offerings.
Authors :: George Foster, Peter Ziebelman, Jessica Morgan
Swot Analysis of "Movile (A): Going Global - Is Silicon Valley the Next Stop?" written by George Foster, Peter Ziebelman, Jessica Morgan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Movile's Movile facing as an external strategic factors. Some of the topics covered in Movile (A): Going Global - Is Silicon Valley the Next Stop? case study are - Strategic Management Strategies, Growth strategy, Mobile, Operations management and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Movile (A): Going Global - Is Silicon Valley the Next Stop? casestudy better are - – technology disruption, increasing government debt because of Covid-19 spendings, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%,
increasing commodity prices, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Movile (A): Going Global - Is Silicon Valley the Next Stop?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Movile (A): Going Global - Is Silicon Valley the Next Stop? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Movile's Movile, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Movile's Movile 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 Movile (A): Going Global - Is Silicon Valley the Next Stop? can be done for the following purposes –
1. Strategic planning using facts provided in Movile (A): Going Global - Is Silicon Valley the Next Stop? case study
2. Improving business portfolio management of Movile's Movile
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 Movile's Movile
Strengths Movile (A): Going Global - Is Silicon Valley the Next Stop? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Movile's Movile in Movile (A): Going Global - Is Silicon Valley the Next Stop? Harvard Business Review case study are -
Effective Research and Development (R&D)
– Movile's Movile has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Movile (A): Going Global - Is Silicon Valley the Next Stop? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Innovation & Entrepreneurship field
– Movile's Movile 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 Movile's Movile in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Movile's Movile is one of the leading recruiters in the industry. Managers in the Movile (A): Going Global - Is Silicon Valley the Next Stop? 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
– Movile's Movile has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Movile's Movile to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Movile's Movile 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.
Diverse revenue streams
– Movile's Movile is present in almost all the verticals within the industry. This has provided firm in Movile (A): Going Global - Is Silicon Valley the Next Stop? 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.
Organizational Resilience of Movile's Movile
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Movile's Movile does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Movile's Movile digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Movile's Movile 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.
Analytics focus
– Movile's Movile 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 George Foster, Peter Ziebelman, Jessica Morgan 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 Movile's Movile 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.
Highly skilled collaborators
– Movile's Movile 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 Movile (A): Going Global - Is Silicon Valley the Next Stop? 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
– Movile's Movile has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Movile's Movile 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 Movile (A): Going Global - Is Silicon Valley the Next Stop? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Movile (A): Going Global - Is Silicon Valley the Next Stop? are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Movile (A): Going Global - Is Silicon Valley the Next Stop? 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 Movile's Movile has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Movile's Movile 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. Movile's Movile 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 Movile (A): Going Global - Is Silicon Valley the Next Stop? HBR case study mentions - Movile's Movile 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.
Low market penetration in new markets
– Outside its home market of Movile's Movile, firm in the HBR case study Movile (A): Going Global - Is Silicon Valley the Next Stop? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Movile (A): Going Global - Is Silicon Valley the Next Stop? 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 Movile's Movile 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Movile's Movile is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Movile (A): Going Global - Is Silicon Valley the Next Stop? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Movile (A): Going Global - Is Silicon Valley the Next Stop? 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 Movile (A): Going Global - Is Silicon Valley the Next Stop? can leverage the sales team experience to cultivate customer relationships as Movile's Movile is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, George Foster, Peter Ziebelman, Jessica Morgan suggests that, Movile's Movile 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Movile (A): Going Global - Is Silicon Valley the Next Stop?, in the dynamic environment Movile's Movile has struggled to respond to the nimble upstart competition. Movile's Movile has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Movile (A): Going Global - Is Silicon Valley the Next Stop?, 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.
Increasing silos among functional specialists
– The organizational structure of Movile's Movile is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Movile's Movile needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Movile's Movile to focus more on services rather than just following the product oriented approach.
Opportunities Movile (A): Going Global - Is Silicon Valley the Next Stop? | 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 Movile (A): Going Global - Is Silicon Valley the Next Stop? are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Movile's Movile 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 Movile's Movile to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Movile's Movile can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Movile (A): Going Global - Is Silicon Valley the Next Stop? 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.
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. Movile's Movile 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. Movile's Movile 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.
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. Movile's Movile can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Movile's Movile 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.
Learning at scale
– Online learning technologies has now opened space for Movile's Movile 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.
Loyalty marketing
– Movile's Movile 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.
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 Movile's Movile 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Movile's Movile 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, Movile (A): Going Global - Is Silicon Valley the Next Stop?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Movile's Movile 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.
Using analytics as competitive advantage
– Movile's Movile 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 Movile (A): Going Global - Is Silicon Valley the Next Stop? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Movile's Movile to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Movile's Movile can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Movile's Movile 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.
Threats Movile (A): Going Global - Is Silicon Valley the Next Stop? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Movile (A): Going Global - Is Silicon Valley the Next Stop? 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. Movile's Movile 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Movile's Movile 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 Movile (A): Going Global - Is Silicon Valley the Next Stop?, Movile's Movile 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 .
Environmental challenges
– Movile's Movile 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. Movile's Movile can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Movile's Movile 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 Movile (A): Going Global - Is Silicon Valley the Next Stop? .
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. Movile's Movile needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Consumer confidence and its impact on Movile's Movile 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.
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 Movile's Movile.
Technology acceleration in Forth Industrial Revolution
– Movile's Movile has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Movile's Movile 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.
Stagnating economy with rate increase
– Movile's Movile 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.
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.
High dependence on third party suppliers
– Movile's Movile 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.
Increasing wage structure of Movile's Movile
– 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 Movile's Movile.
Weighted SWOT Analysis of Movile (A): Going Global - Is Silicon Valley the Next Stop? 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 Movile (A): Going Global - Is Silicon Valley the Next Stop? 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 Movile (A): Going Global - Is Silicon Valley the Next Stop? 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 Movile (A): Going Global - Is Silicon Valley the Next Stop? 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 Movile (A): Going Global - Is Silicon Valley the Next Stop? 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 Movile's Movile needs to make to build a sustainable competitive advantage.
