Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B) 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 (B)
Supplement to case B5868. 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.
Swot Analysis of "Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B)" 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 (B) 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 (B) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , there is backlash against globalization, technology disruption, increasing household debt because of falling income levels, increasing commodity prices, talent flight as more people leaving formal jobs,
there is increasing trade war between United States & China, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B)
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 (B) 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 (B) 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 (B) 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 (B) | 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 (B) Harvard Business Review case study are -
High brand equity
– Google Hanke has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Google Hanke to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
Operational resilience
– The operational resilience strategy in the Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B) 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.
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 (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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 (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Google Hanke digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Google Hanke 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.
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 (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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 (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B) | 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 (B) are -
No frontier risks strategy
– After analyzing the HBR case study Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B), 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.
Skills based hiring
– The stress on hiring functional specialists at Google Hanke has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Products dominated business model
– Even though Google Hanke has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B) should strive to include more intangible value offerings along with its core products and services.
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 (B), 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Jerome S. Engel suggests that, Google Hanke 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.
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.
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 (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B), is just above the industry average. Google Hanke 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B), it seems that the employees of Google Hanke 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 operating costs
– Compare to the competitors, firm in the HBR case study Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B) 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 Google Hanke 's lucrative customers.
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.
Opportunities Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B) | 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 (B) are -
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. Google Hanke can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Google Hanke 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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Google Hanke 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.
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.
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 (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Google Hanke can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B) 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.
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.
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.
Manufacturing automation
– Google Hanke 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Google Hanke can use these opportunities to build new business models that can help the communities that Google Hanke operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Loyalty marketing
– Google Hanke 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.
Threats Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B) 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 (B) are -
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.
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 Google Hanke in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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.
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.
Technology acceleration in Forth Industrial Revolution
– Google Hanke has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Google Hanke 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.
High dependence on third party suppliers
– Google Hanke 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.
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.
Regulatory challenges
– Google Hanke 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 wage structure of Google Hanke
– 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 Google Hanke.
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. Google Hanke can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.
Weighted SWOT Analysis of Google and Niantic Labs: The Professional Entrepreneur and Innovation in the Silicon Valley (B) 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 (B) 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 (B) 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 (B) 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 (B) 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.
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