Nanxi Liu: Finding the Keys to Sales Success at Enplug SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Nanxi Liu: Finding the Keys to Sales Success at Enplug
In 2012, Nanxi Liu and her four co-founders launched Enplug, a digital signage company that specialized in providing businesses with customizable, interactive digital displays. A few years into the venture, Enplug pivoted from an installation-based service model that relied heavily on digital advertisements for revenue to a product-focused company that built and sold a downloadable software. The case revolves around Liu's considerations of Enplug's pricing models, sales strategy, and newly launched reseller program. It also examines Enplug's startup culture and how that played a role in Liu's decision-making as Enplug's Chief Executive Officer.
Swot Analysis of "Nanxi Liu: Finding the Keys to Sales Success at Enplug" written by Paul Orlando, Megan Strawther includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Enplug Enplug's facing as an external strategic factors. Some of the topics covered in Nanxi Liu: Finding the Keys to Sales Success at Enplug case study are - Strategic Management Strategies, Organizational structure, Pricing, Product development and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Nanxi Liu: Finding the Keys to Sales Success at Enplug casestudy better are - – geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%,
competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Nanxi Liu: Finding the Keys to Sales Success at Enplug
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Nanxi Liu: Finding the Keys to Sales Success at Enplug case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Enplug Enplug's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Enplug Enplug's 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 Nanxi Liu: Finding the Keys to Sales Success at Enplug can be done for the following purposes –
1. Strategic planning using facts provided in Nanxi Liu: Finding the Keys to Sales Success at Enplug case study
2. Improving business portfolio management of Enplug Enplug's
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 Enplug Enplug's
Strengths Nanxi Liu: Finding the Keys to Sales Success at Enplug | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Enplug Enplug's in Nanxi Liu: Finding the Keys to Sales Success at Enplug Harvard Business Review case study are -
Learning organization
- Enplug Enplug's 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 Enplug Enplug's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Nanxi Liu: Finding the Keys to Sales Success at Enplug Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Enplug Enplug's 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.
Training and development
– Enplug Enplug's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Nanxi Liu: Finding the Keys to Sales Success at Enplug 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.
Cross disciplinary teams
– Horizontal connected teams at the Enplug Enplug's 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.
High brand equity
– Enplug Enplug's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Enplug Enplug's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Enplug Enplug's 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 Paul Orlando, Megan Strawther 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.
Highly skilled collaborators
– Enplug Enplug's 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 Nanxi Liu: Finding the Keys to Sales Success at Enplug HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Enplug Enplug's 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 Nanxi Liu: Finding the Keys to Sales Success at Enplug - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Nanxi Liu: Finding the Keys to Sales Success at Enplug firm has clearly differentiated products in the market place. This has enabled Enplug Enplug's to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Enplug Enplug's to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Enplug Enplug's in the sector have low bargaining power. Nanxi Liu: Finding the Keys to Sales Success at Enplug has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Enplug Enplug's to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Innovation & Entrepreneurship field
– Enplug Enplug's 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 Enplug Enplug's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Enplug Enplug's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Enplug Enplug's 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.
Weaknesses Nanxi Liu: Finding the Keys to Sales Success at Enplug | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Nanxi Liu: Finding the Keys to Sales Success at Enplug are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Nanxi Liu: Finding the Keys to Sales Success at Enplug 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 Enplug Enplug's has relatively successful track record of launching new products.
Lack of clear differentiation of Enplug Enplug's products
– To increase the profitability and margins on the products, Enplug Enplug's needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Nanxi Liu: Finding the Keys to Sales Success at Enplug, it seems that the employees of Enplug Enplug's 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.
Skills based hiring
– The stress on hiring functional specialists at Enplug Enplug's 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.
Slow to strategic competitive environment developments
– As Nanxi Liu: Finding the Keys to Sales Success at Enplug HBR case study mentions - Enplug Enplug's 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 decision making process
– As mentioned earlier in the report, Enplug Enplug's has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Enplug Enplug's even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Need for greater diversity
– Enplug Enplug's 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.
Low market penetration in new markets
– Outside its home market of Enplug Enplug's, firm in the HBR case study Nanxi Liu: Finding the Keys to Sales Success at Enplug needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Enplug Enplug's is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Enplug Enplug's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Enplug Enplug's to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Enplug Enplug's 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.
High cash cycle compare to competitors
Enplug Enplug's has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Opportunities Nanxi Liu: Finding the Keys to Sales Success at Enplug | 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 Nanxi Liu: Finding the Keys to Sales Success at Enplug are -
Creating value in data economy
– The success of analytics program of Enplug Enplug's has opened avenues for new revenue streams for the organization in the industry. This can help Enplug Enplug's to build a more holistic ecosystem as suggested in the Nanxi Liu: Finding the Keys to Sales Success at Enplug case study. Enplug Enplug's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Enplug Enplug's 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.
Developing new processes and practices
– Enplug Enplug's 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, Enplug Enplug's 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.
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. Enplug Enplug's 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. Enplug Enplug's 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.
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. Enplug Enplug's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Enplug Enplug's can use these opportunities to build new business models that can help the communities that Enplug Enplug's operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Building a culture of innovation
– managers at Enplug Enplug's 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Enplug Enplug's 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, Nanxi Liu: Finding the Keys to Sales Success at Enplug, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Enplug Enplug's 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.
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 Enplug Enplug's 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.
Learning at scale
– Online learning technologies has now opened space for Enplug Enplug's 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.
Manufacturing automation
– Enplug Enplug's can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Threats Nanxi Liu: Finding the Keys to Sales Success at Enplug External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Nanxi Liu: Finding the Keys to Sales Success at Enplug are -
Technology acceleration in Forth Industrial Revolution
– Enplug Enplug's has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Enplug Enplug's 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.
Regulatory challenges
– Enplug Enplug's 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.
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. Enplug Enplug's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Enplug Enplug's 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. Enplug Enplug's can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Increasing wage structure of Enplug Enplug's
– 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 Enplug Enplug's.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Enplug Enplug's 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 Nanxi Liu: Finding the Keys to Sales Success at Enplug .
Stagnating economy with rate increase
– Enplug Enplug's 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.
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 Enplug Enplug's business can come under increasing regulations regarding data privacy, data security, etc.
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. Enplug Enplug's needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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 Enplug Enplug's in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Nanxi Liu: Finding the Keys to Sales Success at Enplug, Enplug Enplug's 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 .
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 Enplug Enplug's.
Weighted SWOT Analysis of Nanxi Liu: Finding the Keys to Sales Success at Enplug 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 Nanxi Liu: Finding the Keys to Sales Success at Enplug 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 Nanxi Liu: Finding the Keys to Sales Success at Enplug 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 Nanxi Liu: Finding the Keys to Sales Success at Enplug 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 Nanxi Liu: Finding the Keys to Sales Success at Enplug 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 Enplug Enplug's needs to make to build a sustainable competitive advantage.
