Case Study Description of Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan
This is a 1-on-1 first interaction negotiation between John, a senior sales manager of high-end, state-of-the-art laptops (Boost computers), and Cindy, a procurement manager of a business consulting firm. Cindy has invited John to discuss his proposal to sell 50 of the latest technology computers.
Swot Analysis of "Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan" written by Horacio Falcao, Kriti Jain, Heather Grover includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cindy Computers facing as an external strategic factors. Some of the topics covered in Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan case study are - Strategic Management Strategies, Growth strategy, IT, Negotiations, Pricing and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan casestudy better are - – increasing commodity prices, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, geopolitical disruptions, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies,
competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cindy Computers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cindy Computers 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan can be done for the following purposes –
1. Strategic planning using facts provided in Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan case study
2. Improving business portfolio management of Cindy Computers
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 Cindy Computers
Strengths Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cindy Computers in Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Cindy Computers in the sector have low bargaining power. Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cindy Computers to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Cindy Computers 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 Horacio Falcao, Kriti Jain, Heather Grover 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Cindy Computers digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cindy Computers 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.
Innovation driven organization
– Cindy Computers is one of the most innovative firm in sector. Manager in Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Cindy Computers is one of the leading recruiters in the industry. Managers in the Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Cindy Computers 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Cindy Computers has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cindy Computers 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.
Organizational Resilience of Cindy Computers
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cindy Computers does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Cindy Computers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cindy Computers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Innovation & Entrepreneurship field
– Cindy Computers 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 Cindy Computers in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Cindy Computers 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Cindy Computers 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 Cindy Computers is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Cindy Computers has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan, is just above the industry average. Cindy Computers needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to strategic competitive environment developments
– As Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan HBR case study mentions - Cindy Computers 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, Cindy Computers 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. Cindy Computers 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Cindy Computers 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.
Products dominated business model
– Even though Cindy Computers 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 - Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Cindy Computers is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Cindy Computers needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cindy Computers to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Cindy Computers 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cindy Computers is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan, 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.
Low market penetration in new markets
– Outside its home market of Cindy Computers, firm in the HBR case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan | 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan are -
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 Cindy Computers 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.
Using analytics as competitive advantage
– Cindy Computers 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cindy Computers to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cindy Computers can use these opportunities to build new business models that can help the communities that Cindy Computers operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cindy Computers 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 Cindy Computers to hire the very best people irrespective of their geographical location.
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. Cindy Computers 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. Cindy Computers 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.
Buying journey improvements
– Cindy Computers can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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.
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. Cindy Computers can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Cindy Computers 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cindy Computers 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.
Manufacturing automation
– Cindy Computers 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.
Developing new processes and practices
– Cindy Computers 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.
Better consumer reach
– The expansion of the 5G network will help Cindy Computers to increase its market reach. Cindy Computers 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 Cindy Computers 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.
Threats Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan are -
Stagnating economy with rate increase
– Cindy Computers 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.
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 Cindy Computers.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cindy Computers 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 Cindy Computers 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan, Cindy Computers 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cindy Computers 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cindy Computers with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Cindy Computers needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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. Cindy Computers can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Cindy Computers in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Increasing wage structure of Cindy Computers
– 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 Cindy Computers.
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 Cindy Computers business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Cindy Computers needs to make to build a sustainable competitive advantage.
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