Argo Interactive (A): 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 (A): Surviving in the Roller-Coasting Mobile Industry
This FocusCase is about a young VC-backed technology company in the UK, trying to turn around from a near-death crisis after their market did not pick up. The company Argo Interactive focused, with their innovative software product, on the newly emerging WAP-market. However, after burning through 14 million pound sterling of venture capital, the market had still not shown any signs of life, and the senior management team needed to make an urgent decision on how to continue. On September 11, 2001 - while they were having their crisis meeting - they found out that the regular newspapers were already distributing printed copies with color photos of the terror attacks on the World Trade Center, while even CNN did not mention it on their WAP-site until many hours later. After their main investors had heard about this news and about management's plans to make significant changes, they invoked a material adverse change clause, preventing the firm from drowning down any further cash from the previous round. Would the best option be to shut down the firm immediately or should the management team try to turn the firm around? If deciding for the latter, which decisions should they take with regard to financing, market focus, product (re-)development, HR issues, positioning and the overall survival strategy of the firm?
Authors :: Julia Prats Moreno, Marc Sosna, Dave Darsch
Swot Analysis of "Argo Interactive (A): 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 Wap Argo facing as an external strategic factors. Some of the topics covered in Argo Interactive (A): 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 (A): Surviving in the Roller-Coasting Mobile Industry casestudy better are - – digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, technology disruption, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%,
talent flight as more people leaving formal jobs, increasing energy prices, etc
Introduction to SWOT Analysis of Argo Interactive (A): 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 (A): 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 Wap Argo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wap Argo 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 (A): Surviving in the Roller-Coasting Mobile Industry can be done for the following purposes –
1. Strategic planning using facts provided in Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry case study
2. Improving business portfolio management of Wap Argo
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 Wap Argo
Strengths Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wap Argo in Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry Harvard Business Review case study are -
Highly skilled collaborators
– Wap Argo 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 (A): 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.
Learning organization
- Wap Argo 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 Wap Argo is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Wap Argo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Wap Argo 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.
Ability to lead change in Innovation & Entrepreneurship field
– Wap Argo 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 Wap Argo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Wap Argo in the sector have low bargaining power. Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wap Argo to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Wap Argo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Wap Argo 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.
Ability to recruit top talent
– Wap Argo is one of the leading recruiters in the industry. Managers in the Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Wap Argo 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 Wap Argo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wap Argo 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.
Strong track record of project management
– Wap Argo 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 Wap Argo 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.
Weaknesses Argo Interactive (A): 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 (A): Surviving in the Roller-Coasting Mobile Industry are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry, it seems that the employees of Wap Argo don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow to strategic competitive environment developments
– As Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry HBR case study mentions - Wap Argo 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Argo Interactive (A): 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 Wap Argo has relatively successful track record of launching new products.
High cash cycle compare to competitors
Wap Argo 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Wap Argo 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wap Argo is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Wap Argo products
– To increase the profitability and margins on the products, Wap Argo needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Wap Argo 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 bargaining power of channel partners
– Because of the regulatory requirements, Julia Prats Moreno, Marc Sosna, Dave Darsch suggests that, Wap Argo 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry, is just above the industry average. Wap Argo 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.
Increasing silos among functional specialists
– The organizational structure of Wap Argo is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Wap Argo needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Wap Argo to focus more on services rather than just following the product oriented approach.
Opportunities Argo Interactive (A): 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 (A): Surviving in the Roller-Coasting Mobile Industry are -
Leveraging digital technologies
– Wap Argo 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.
Learning at scale
– Online learning technologies has now opened space for Wap Argo 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. Wap Argo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wap Argo can use these opportunities to build new business models that can help the communities that Wap Argo operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Building a culture of innovation
– managers at Wap Argo 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.
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. Wap Argo can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Wap Argo to increase its market reach. Wap Argo 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wap Argo is facing challenges because of the dominance of functional experts in the organization. Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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 Wap Argo in the consumer business. Now Wap Argo can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Wap Argo 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Wap Argo 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 Wap Argo to hire the very best people irrespective of their geographical location.
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 Wap Argo 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.
Manufacturing automation
– Wap Argo 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 Argo Interactive (A): 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 (A): Surviving in the Roller-Coasting Mobile Industry are -
Environmental challenges
– Wap Argo 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. Wap Argo can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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. Wap Argo can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Wap Argo 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wap Argo 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 Argo Interactive (A): Surviving in the Roller-Coasting Mobile Industry .
High dependence on third party suppliers
– Wap Argo 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
– Wap Argo 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 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. Wap Argo 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 Wap Argo 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.
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.
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. Wap Argo 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.
Technology acceleration in Forth Industrial Revolution
– Wap Argo has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Wap Argo 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.
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 (A): Surviving in the Roller-Coasting Mobile Industry, Wap Argo 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 .
Weighted SWOT Analysis of Argo Interactive (A): 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 (A): 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 (A): 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 (A): 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 (A): 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 Wap Argo needs to make to build a sustainable competitive advantage.