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, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels,
challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
Training and development
– Bwb Triple has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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.
Analytics focus
– Bwb Triple 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 Marne L. Arthaud-Day, Konstantinos Grigoriou, Frank T. Rothaermel 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
– 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.
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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Bwb Triple digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bwb Triple 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.
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.
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.
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.
Operational resilience
– The operational resilience strategy in the Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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.
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.
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.
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.
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 -
No frontier risks strategy
– After analyzing the HBR case study Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line, 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.
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.
Increasing silos among functional specialists
– The organizational structure of Bwb Triple is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Bwb Triple needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bwb Triple to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Bwb Triple products
– To increase the profitability and margins on the products, Bwb Triple needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line, it seems that the employees of Bwb Triple 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line, in the dynamic environment Bwb Triple has struggled to respond to the nimble upstart competition. Bwb Triple has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bwb Triple is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 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 Bwb Triple supply chain. Even after few cautionary changes mentioned in the HBR case study - Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bwb Triple vulnerable to further global disruptions in South East Asia.
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 -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bwb Triple 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 Bwb Triple to hire the very best people irrespective of their geographical location.
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. Bwb Triple can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bwb Triple 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.
Buying journey improvements
– Bwb Triple can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bwb Triple is facing challenges because of the dominance of functional experts in the organization. Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line 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.
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.
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.
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.
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 Bwb Triple 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.
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.
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.
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.
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 Bwb Triple in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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.
Stagnating economy with rate increase
– Bwb Triple 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bwb Triple 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 Better World Books (in 2013): Social Entrepreneurship and the Triple Bottom Line .
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.
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.
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.
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.
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.