iPhone Applications: Viable Business or Time-Consuming Hobby? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of iPhone Applications: Viable Business or Time-Consuming Hobby?
Briefly describes content of case. In August 2008 two young entrepreneurs created the iPhone application iBART, which offered instant access to all of the San Francisco Bay Area Rapid Transit information. After achieving rapid success, they were at a critical juncture with their start-up. How could they monetize their app? What growth strategies should they pursue for their company?
Swot Analysis of "iPhone Applications: Viable Business or Time-Consuming Hobby?" written by Leslie A Goldgehn includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Iphone Ibart facing as an external strategic factors. Some of the topics covered in iPhone Applications: Viable Business or Time-Consuming Hobby? case study are - Strategic Management Strategies, Entrepreneurship, Marketing, Pricing and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the iPhone Applications: Viable Business or Time-Consuming Hobby? casestudy better are - – wage bills are increasing, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies,
increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, etc
Introduction to SWOT Analysis of iPhone Applications: Viable Business or Time-Consuming Hobby?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in iPhone Applications: Viable Business or Time-Consuming Hobby? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Iphone Ibart, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Iphone Ibart 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 iPhone Applications: Viable Business or Time-Consuming Hobby? can be done for the following purposes –
1. Strategic planning using facts provided in iPhone Applications: Viable Business or Time-Consuming Hobby? case study
2. Improving business portfolio management of Iphone Ibart
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 Iphone Ibart
Strengths iPhone Applications: Viable Business or Time-Consuming Hobby? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Iphone Ibart in iPhone Applications: Viable Business or Time-Consuming Hobby? Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Iphone Ibart 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.
Analytics focus
– Iphone Ibart 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 Leslie A Goldgehn 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
– Iphone Ibart 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 Iphone Ibart in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Iphone Ibart has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in iPhone Applications: Viable Business or Time-Consuming Hobby? 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Iphone Ibart digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Iphone Ibart 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.
Low bargaining power of suppliers
– Suppliers of Iphone Ibart in the sector have low bargaining power. iPhone Applications: Viable Business or Time-Consuming Hobby? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Iphone Ibart to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Iphone Ibart 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 iPhone Applications: Viable Business or Time-Consuming Hobby? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Iphone Ibart is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Iphone Ibart 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 Iphone Ibart is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in iPhone Applications: Viable Business or Time-Consuming Hobby? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Iphone Ibart has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Iphone Ibart 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
– Iphone Ibart is one of the leading recruiters in the industry. Managers in the iPhone Applications: Viable Business or Time-Consuming Hobby? 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 switching costs
– The high switching costs that Iphone Ibart 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 iPhone Applications: Viable Business or Time-Consuming Hobby? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of iPhone Applications: Viable Business or Time-Consuming Hobby? are -
Capital Spending Reduction
– Even during the low interest decade, Iphone Ibart 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.
Lack of clear differentiation of Iphone Ibart products
– To increase the profitability and margins on the products, Iphone Ibart needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Iphone Ibart, firm in the HBR case study iPhone Applications: Viable Business or Time-Consuming Hobby? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study iPhone Applications: Viable Business or Time-Consuming Hobby?, 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study iPhone Applications: Viable Business or Time-Consuming Hobby?, it seems that the employees of Iphone Ibart 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the iPhone Applications: Viable Business or Time-Consuming Hobby? 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 Iphone Ibart has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As iPhone Applications: Viable Business or Time-Consuming Hobby? HBR case study mentions - Iphone Ibart 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study iPhone Applications: Viable Business or Time-Consuming Hobby?, is just above the industry average. Iphone Ibart 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Iphone Ibart is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study iPhone Applications: Viable Business or Time-Consuming Hobby? 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 iPhone Applications: Viable Business or Time-Consuming Hobby? 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 iPhone Applications: Viable Business or Time-Consuming Hobby? can leverage the sales team experience to cultivate customer relationships as Iphone Ibart is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Iphone Ibart supply chain. Even after few cautionary changes mentioned in the HBR case study - iPhone Applications: Viable Business or Time-Consuming Hobby?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Iphone Ibart vulnerable to further global disruptions in South East Asia.
Opportunities iPhone Applications: Viable Business or Time-Consuming Hobby? | 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 iPhone Applications: Viable Business or Time-Consuming Hobby? are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Iphone Ibart 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.
Developing new processes and practices
– Iphone Ibart 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.
Using analytics as competitive advantage
– Iphone Ibart 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 iPhone Applications: Viable Business or Time-Consuming Hobby? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Iphone Ibart to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Iphone Ibart in the consumer business. Now Iphone Ibart can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Iphone Ibart 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 Iphone Ibart to hire the very best people irrespective of their geographical location.
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. Iphone Ibart can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Iphone Ibart 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
– Iphone Ibart 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Iphone Ibart 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Iphone Ibart can use these opportunities to build new business models that can help the communities that Iphone Ibart operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
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. Iphone Ibart can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Iphone Ibart 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.
Buying journey improvements
– Iphone Ibart can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. iPhone Applications: Viable Business or Time-Consuming Hobby? 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.
Threats iPhone Applications: Viable Business or Time-Consuming Hobby? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study iPhone Applications: Viable Business or Time-Consuming Hobby? 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. Iphone Ibart 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study iPhone Applications: Viable Business or Time-Consuming Hobby?, Iphone Ibart 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 .
Technology acceleration in Forth Industrial Revolution
– Iphone Ibart has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Iphone Ibart 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Iphone Ibart 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 iPhone Applications: Viable Business or Time-Consuming Hobby? .
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Iphone Ibart with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Iphone Ibart.
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. Iphone Ibart needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Iphone Ibart 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.
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 Iphone Ibart in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Increasing wage structure of Iphone Ibart
– 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 Iphone Ibart.
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. Iphone Ibart can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of iPhone Applications: Viable Business or Time-Consuming Hobby? 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 iPhone Applications: Viable Business or Time-Consuming Hobby? 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 iPhone Applications: Viable Business or Time-Consuming Hobby? 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 iPhone Applications: Viable Business or Time-Consuming Hobby? 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 iPhone Applications: Viable Business or Time-Consuming Hobby? 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 Iphone Ibart needs to make to build a sustainable competitive advantage.
