Is government the biggest, worst customer in the world? And is that a reason for venture investors to back companies that sell to government or to stay away? It had been seven years since Scott Burns joined his friend Zach Stabenow to get a company called GovDocs off the ground. In that time, they had evolved from a provider of government-mandated labor law posters to the country's largest sender of government-to-citizen emails. GovDelivery, as the company became known, was one of the first companies to move governments into the cloud, one of the first to sell them software as a service (SaaS), and in 2007, the only one with 3 million registered citizens using its platform to receive communications from federal, state, regional, and city governments and public authorities. In those seven years, Burns had raised capital from many sources: friends and family, angel investors, strategic partners, banks, and the investment arm of a major family fund. He and Stabenow had also grown the business through operating revenue and by keeping a tight watch on costs. They had to. Because growth capital had come in from almost all corners, expect one: major venture firms. Now, with roughly $6 million in annual revenue and projections to double that within three years, Burns was prepping for discussions with half a dozen Tier 1 firms. In doing so, he was anticipating what he thought would be the "elephant in the room." GovDelivery's business-to-government revenue model had been a conversation-stopper with major investors looking at Burns' company and companies like it. What would he tell potential backers?
Swot Analysis of "GovDelivery" written by Mitchell Weiss includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Burns Govdelivery facing as an external strategic factors. Some of the topics covered in GovDelivery case study are - Strategic Management Strategies, IT, Venture capital and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the GovDelivery casestudy better are - – supply chains are disrupted by pandemic , there is increasing trade war between United States & China, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs,
central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GovDelivery case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Burns Govdelivery, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Burns Govdelivery 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 GovDelivery can be done for the following purposes –
1. Strategic planning using facts provided in GovDelivery case study
2. Improving business portfolio management of Burns Govdelivery
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 Burns Govdelivery
Strengths GovDelivery | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Burns Govdelivery in GovDelivery Harvard Business Review case study are -
Successful track record of launching new products
– Burns Govdelivery has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Burns Govdelivery 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.
Training and development
– Burns Govdelivery has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in GovDelivery 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.
Low bargaining power of suppliers
– Suppliers of Burns Govdelivery in the sector have low bargaining power. GovDelivery has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Burns Govdelivery to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Burns Govdelivery is present in almost all the verticals within the industry. This has provided firm in GovDelivery 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.
Highly skilled collaborators
– Burns Govdelivery 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 GovDelivery HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Burns Govdelivery is one of the leading recruiters in the industry. Managers in the GovDelivery are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– GovDelivery firm has clearly differentiated products in the market place. This has enabled Burns Govdelivery to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Burns Govdelivery to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Burns Govdelivery in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Burns Govdelivery 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 Burns Govdelivery is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GovDelivery Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Burns Govdelivery
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Burns Govdelivery does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Burns Govdelivery digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Burns Govdelivery 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.
Operational resilience
– The operational resilience strategy in the GovDelivery 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.
Weaknesses GovDelivery | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GovDelivery are -
Low market penetration in new markets
– Outside its home market of Burns Govdelivery, firm in the HBR case study GovDelivery needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study GovDelivery, it seems that the employees of Burns Govdelivery 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.
Lack of clear differentiation of Burns Govdelivery products
– To increase the profitability and margins on the products, Burns Govdelivery needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study GovDelivery 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 GovDelivery can leverage the sales team experience to cultivate customer relationships as Burns Govdelivery is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Burns Govdelivery 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Mitchell Weiss suggests that, Burns Govdelivery 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.
Increasing silos among functional specialists
– The organizational structure of Burns Govdelivery is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Burns Govdelivery needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Burns Govdelivery to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As GovDelivery HBR case study mentions - Burns Govdelivery 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Burns Govdelivery is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study GovDelivery can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Burns Govdelivery 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 - GovDelivery should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study GovDelivery, in the dynamic environment Burns Govdelivery has struggled to respond to the nimble upstart competition. Burns Govdelivery has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities GovDelivery | 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 GovDelivery are -
Learning at scale
– Online learning technologies has now opened space for Burns Govdelivery 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.
Better consumer reach
– The expansion of the 5G network will help Burns Govdelivery to increase its market reach. Burns Govdelivery 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Burns Govdelivery can use these opportunities to build new business models that can help the communities that Burns Govdelivery operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Burns Govdelivery is facing challenges because of the dominance of functional experts in the organization. GovDelivery 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.
Loyalty marketing
– Burns Govdelivery 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Burns Govdelivery can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Burns Govdelivery 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.
Using analytics as competitive advantage
– Burns Govdelivery 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 GovDelivery - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Burns Govdelivery to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Burns Govdelivery can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. GovDelivery 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.
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. Burns Govdelivery can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Burns Govdelivery in the consumer business. Now Burns Govdelivery can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Burns Govdelivery has opened avenues for new revenue streams for the organization in the industry. This can help Burns Govdelivery to build a more holistic ecosystem as suggested in the GovDelivery case study. Burns Govdelivery can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Burns Govdelivery 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, GovDelivery, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats GovDelivery External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GovDelivery are -
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 Burns Govdelivery in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Burns Govdelivery with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Burns Govdelivery 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 GovDelivery .
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. Burns Govdelivery 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.
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. Burns Govdelivery needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Burns Govdelivery 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.
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. Burns Govdelivery can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Burns Govdelivery
– 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 Burns Govdelivery.
Technology acceleration in Forth Industrial Revolution
– Burns Govdelivery has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Burns Govdelivery 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 GovDelivery, Burns Govdelivery 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 .
Regulatory challenges
– Burns Govdelivery 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.
Consumer confidence and its impact on Burns Govdelivery 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.
Weighted SWOT Analysis of GovDelivery 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 GovDelivery 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 GovDelivery 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 GovDelivery 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 GovDelivery 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 Burns Govdelivery needs to make to build a sustainable competitive advantage.