Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A)
The case study focuses on the entrepreneurial career of John Hanke, a 1996 MBA graduate of the Haas School of Business at the University of California, Berkeley and a professional entrepreneur. While the case's central storyline centers on whether Hanke should spin-out his most recent venture - an entity called Niantic Labs that develops augmented reality (AR) games for use on smart phones from Google - in early 2015, there are multiple subplots that make this a potentially discussion-rich case for classroom use: (1) How the different components of the "Culture of Innovation" ecosystem in the San Francisco Bay Area impacted Hanke's career, starting from the time when he first enrolled at Berkeley-Haas in Fall 1994 up to his current situation now; (2) How he successfully created several start-ups before Google acquired his third one, Keyhole, an 3-D online mapping company, in 2004 and then rebranded it as Google Earth; (3) How he was able to scale-up Google's Geo-products division over an eight-year period and within a large corporate setting by applying the concepts of "lean start-up", "open sourcing", and "open innovation" that led to the eventual creation of Google Maps and Google Street View; and (4) The importance of "time and place", which demonstrates how Hanke, as a successful and experienced entrepreneur, foresaw the intersection of multiple converging technology trends, including the increased power of handheld computing, digital graphics, space-based imagery and geo-location with the ubiquitous use of mobile devices and the possibilities of new and related online products, services, and other forms of social interaction. Please note: this case also has a supplementary case available. The (B) supplement can be found using product number B5869.
Swot Analysis of "Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A)" written by Jerome S. Engel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Google Hanke facing as an external strategic factors. Some of the topics covered in Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) case study are - Strategic Management Strategies, Costs, Emerging markets, Entrepreneurship, Innovation, Internet, Mergers & acquisitions and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) casestudy better are - – wage bills are increasing, supply chains are disrupted by pandemic , geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google,
increasing energy prices, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Google Hanke, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Google Hanke 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 Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) can be done for the following purposes –
1. Strategic planning using facts provided in Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) case study
2. Improving business portfolio management of Google Hanke
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 Google Hanke
Strengths Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Google Hanke in Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) Harvard Business Review case study are -
Diverse revenue streams
– Google Hanke is present in almost all the verticals within the industry. This has provided firm in Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) firm has clearly differentiated products in the market place. This has enabled Google Hanke to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Google Hanke to invest into research and development (R&D) and innovation.
Analytics focus
– Google Hanke 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 Jerome S. Engel can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Organizational Resilience of Google Hanke
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Google Hanke does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Google Hanke is one of the leading recruiters in the industry. Managers in the Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Google Hanke 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 Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Google Hanke is one of the most innovative firm in sector. Manager in Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Google Hanke 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 Google Hanke 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.
Learning organization
- Google Hanke 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 Google Hanke is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Google Hanke 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 Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Google Hanke in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) 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 Google Hanke has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Google Hanke, firm in the HBR case study Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Google Hanke 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.
Lack of clear differentiation of Google Hanke products
– To increase the profitability and margins on the products, Google Hanke needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Google Hanke supply chain. Even after few cautionary changes mentioned in the HBR case study - Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Google Hanke vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Google Hanke 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.
Aligning sales with marketing
– It come across in the case study Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) 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 Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) can leverage the sales team experience to cultivate customer relationships as Google Hanke is planning to shift buying processes online.
Interest costs
– Compare to the competition, Google Hanke has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Workers concerns about automation
– As automation is fast increasing in the segment, Google Hanke 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.
No frontier risks strategy
– After analyzing the HBR case study Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A), it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Google Hanke is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) | 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 Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Google Hanke 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, Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Google Hanke can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Google Hanke to increase its market reach. Google Hanke 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.
Building a culture of innovation
– managers at Google Hanke 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.
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. Google Hanke can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Google Hanke has opened avenues for new revenue streams for the organization in the industry. This can help Google Hanke to build a more holistic ecosystem as suggested in the Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) case study. Google Hanke can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Google Hanke 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.
Leveraging digital technologies
– Google Hanke 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. Google Hanke 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. Google Hanke 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Google Hanke 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Google Hanke 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 Google Hanke to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Google Hanke 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Google Hanke is facing challenges because of the dominance of functional experts in the organization. Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) 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.
Threats Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A), Google Hanke 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Google Hanke with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Environmental challenges
– Google Hanke 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. Google Hanke can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Shortening product life cycle
– it is one of the major threat that Google Hanke is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Google Hanke business can come under increasing regulations regarding data privacy, data security, etc.
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. Google Hanke 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.
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 Google Hanke.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Google Hanke 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 Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Google Hanke 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.
Consumer confidence and its impact on Google Hanke 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.
Stagnating economy with rate increase
– Google Hanke 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 Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) 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 Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) 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 Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) 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 Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) 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 Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A) 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 Google Hanke needs to make to build a sustainable competitive advantage.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (A)
