Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship
As the recession fades, corporate leaders need to switch from crisis mode to thinking more seriously about how to grow revenues and create value once again. Corporate entrepreneurship -- the creation of new businesses inside established corporations -- offers a strategy for profitable growth.
Swot Analysis of "Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship" written by Hakan Ener includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Fades Entrepreneurship facing as an external strategic factors. Some of the topics covered in Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship case study are - Strategic Management Strategies, Entrepreneurship, Financial management, Influence, Motivating people, Product development, Strategic planning and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship casestudy better are - – technology disruption, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels,
wage bills are increasing, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fades Entrepreneurship, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fades Entrepreneurship 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 Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship can be done for the following purposes –
1. Strategic planning using facts provided in Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship case study
2. Improving business portfolio management of Fades Entrepreneurship
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 Fades Entrepreneurship
Strengths Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fades Entrepreneurship in Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship Harvard Business Review case study are -
Strong track record of project management
– Fades Entrepreneurship is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Fades Entrepreneurship 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 Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Fades Entrepreneurship is one of the leading recruiters in the industry. Managers in the Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Fades Entrepreneurship has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fades Entrepreneurship 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.
Operational resilience
– The operational resilience strategy in the Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship 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 brand equity
– Fades Entrepreneurship has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fades Entrepreneurship to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship firm has clearly differentiated products in the market place. This has enabled Fades Entrepreneurship to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Fades Entrepreneurship to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Fades Entrepreneurship in the sector have low bargaining power. Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fades Entrepreneurship to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Fades Entrepreneurship has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Fades Entrepreneurship digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fades Entrepreneurship 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.
High switching costs
– The high switching costs that Fades Entrepreneurship 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.
Ability to lead change in Innovation & Entrepreneurship field
– Fades Entrepreneurship 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 Fades Entrepreneurship in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship are -
Interest costs
– Compare to the competition, Fades Entrepreneurship 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.
Slow decision making process
– As mentioned earlier in the report, Fades Entrepreneurship 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. Fades Entrepreneurship 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.
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 Fades Entrepreneurship supply chain. Even after few cautionary changes mentioned in the HBR case study - Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fades Entrepreneurship vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fades Entrepreneurship is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Fades Entrepreneurship, firm in the HBR case study Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Fades Entrepreneurship 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.
Skills based hiring
– The stress on hiring functional specialists at Fades Entrepreneurship 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship, in the dynamic environment Fades Entrepreneurship has struggled to respond to the nimble upstart competition. Fades Entrepreneurship has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship 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 Fades Entrepreneurship 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship 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 Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship can leverage the sales team experience to cultivate customer relationships as Fades Entrepreneurship is planning to shift buying processes online.
Need for greater diversity
– Fades Entrepreneurship 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.
Opportunities Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship | 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 Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fades Entrepreneurship 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 Fades Entrepreneurship to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fades Entrepreneurship can use these opportunities to build new business models that can help the communities that Fades Entrepreneurship operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Building a culture of innovation
– managers at Fades Entrepreneurship 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.
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. Fades Entrepreneurship can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Fades Entrepreneurship 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 Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fades Entrepreneurship to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Fades Entrepreneurship 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.
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. Fades Entrepreneurship 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. Fades Entrepreneurship 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.
Loyalty marketing
– Fades Entrepreneurship 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fades Entrepreneurship 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.
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 Fades Entrepreneurship 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fades Entrepreneurship is facing challenges because of the dominance of functional experts in the organization. Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Fades Entrepreneurship can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Fades Entrepreneurship in the consumer business. Now Fades Entrepreneurship can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship are -
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. Fades Entrepreneurship can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Fades Entrepreneurship business can come under increasing regulations regarding data privacy, data security, etc.
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 Fades Entrepreneurship in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Environmental challenges
– Fades Entrepreneurship 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. Fades Entrepreneurship can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Stagnating economy with rate increase
– Fades Entrepreneurship 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Fades Entrepreneurship with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fades Entrepreneurship 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.
Increasing wage structure of Fades Entrepreneurship
– 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 Fades Entrepreneurship.
Regulatory challenges
– Fades Entrepreneurship 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship, Fades Entrepreneurship 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 .
Shortening product life cycle
– it is one of the major threat that Fades Entrepreneurship is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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. Fades Entrepreneurship needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship 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 Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship 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 Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship 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 Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship 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 Six Keys to Release Ideas for Profitable Growth: Corporate Entrepreneurship 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 Fades Entrepreneurship needs to make to build a sustainable competitive advantage.