Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line
Better World Books was founded as a for-profit "B corporation" committed to a triple bottom-line of financial, social, and environmental performance. After early growth, BWB now faces challenges growing while sustaining their social-entrepreneurship business model. Problems such as narrow margins, shrinking supply, low brand awareness, and even copycat competitors are a few of the issues BWB faces. CEO Andrew Perlmutter must decide how to handle these issues in a way that keeps BWB competitive in the crowded used-book industry and creates value for all of BWB's stakeholders.
Authors :: Marne L. Arthaud-Day, Konstantinos Grigoriou, Frank T. Rothaermel
Swot Analysis of "Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line" written by Marne L. Arthaud-Day, Konstantinos Grigoriou, Frank T. Rothaermel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bwb Triple facing as an external strategic factors. Some of the topics covered in Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line case study are - Strategic Management Strategies, Corporate governance, Organizational culture, Sustainability and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line casestudy better are - – geopolitical disruptions, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, technology disruption, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices,
wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bwb Triple, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bwb Triple 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line can be done for the following purposes –
1. Strategic planning using facts provided in Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line case study
2. Improving business portfolio management of Bwb Triple
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 Bwb Triple
Strengths Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bwb Triple in Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line Harvard Business Review case study are -
Organizational Resilience of Bwb Triple
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bwb Triple does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Bwb Triple 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.
Highly skilled collaborators
– Bwb Triple 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Bwb Triple in the sector have low bargaining power. Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bwb Triple to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Bwb Triple is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line firm has clearly differentiated products in the market place. This has enabled Bwb Triple to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Bwb Triple to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Bwb Triple in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Bwb Triple has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bwb Triple 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.
High switching costs
– The high switching costs that Bwb Triple 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 recruit top talent
– Bwb Triple is one of the leading recruiters in the industry. Managers in the Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Bwb Triple 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Bwb Triple is present in almost all the verticals within the industry. This has provided firm in Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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.
Weaknesses Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line are -
Low market penetration in new markets
– Outside its home market of Bwb Triple, firm in the HBR case study Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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 Bwb Triple has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Marne L. Arthaud-Day, Konstantinos Grigoriou, Frank T. Rothaermel suggests that, Bwb Triple 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.
Skills based hiring
– The stress on hiring functional specialists at Bwb Triple 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.
Aligning sales with marketing
– It come across in the case study Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line can leverage the sales team experience to cultivate customer relationships as Bwb Triple is planning to shift buying processes online.
Products dominated business model
– Even though Bwb Triple 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 - Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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 Bwb Triple 's lucrative customers.
High cash cycle compare to competitors
Bwb Triple 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line, is just above the industry average. Bwb Triple 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Bwb Triple 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.
Interest costs
– Compare to the competition, Bwb Triple 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.
Opportunities Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line | 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line are -
Building a culture of innovation
– managers at Bwb Triple 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.
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 Bwb Triple in the consumer business. Now Bwb Triple can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Bwb Triple 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bwb Triple can use these opportunities to build new business models that can help the communities that Bwb Triple operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
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. Bwb Triple 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. Bwb Triple 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.
Learning at scale
– Online learning technologies has now opened space for Bwb Triple 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.
Using analytics as competitive advantage
– Bwb Triple 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bwb Triple to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Bwb Triple 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.
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. Bwb Triple can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bwb Triple can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Bwb Triple 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.
Creating value in data economy
– The success of analytics program of Bwb Triple has opened avenues for new revenue streams for the organization in the industry. This can help Bwb Triple to build a more holistic ecosystem as suggested in the Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line case study. Bwb Triple 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, Bwb Triple 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, Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line, 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line are -
Consumer confidence and its impact on Bwb Triple 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line, Bwb Triple 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bwb Triple with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Bwb Triple.
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. Bwb Triple can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Bwb Triple is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Regulatory challenges
– Bwb Triple 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.
Environmental challenges
– Bwb Triple 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. Bwb Triple can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Bwb Triple business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bwb Triple 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 Bwb Triple
– 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 Bwb Triple.
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. Bwb Triple needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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 Bwb Triple needs to make to build a sustainable competitive advantage.
