Better World Books (in 2009): 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 2009): 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 David Murphy 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 :: Frank T. Rothaermel, Marne L. Arthaud-Day, Konstantinos Grigoriou
Swot Analysis of "Better World Books (in 2009): Social Entrepreneurship and the Triple Bottom Line" written by Frank T. Rothaermel, Marne L. Arthaud-Day, Konstantinos Grigoriou 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 2009): Social Entrepreneurship and the Triple Bottom Line case study are - Strategic Management Strategies, Corporate governance, Joint ventures, Organizational culture, Sustainability and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Better World Books (in 2009): Social Entrepreneurship and the Triple Bottom Line casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices,
increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Better World Books (in 2009): 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 2009): 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 2009): 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 2009): 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 2009): 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 2009): Social Entrepreneurship and the Triple Bottom Line Harvard Business Review case study are -
Learning organization
- Bwb Triple 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 Bwb Triple is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Better World Books (in 2009): Social Entrepreneurship and the Triple Bottom Line Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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.
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.
Ability to lead change in Innovation & Entrepreneurship field
– Bwb Triple 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 Bwb Triple in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
High brand equity
– Bwb Triple has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bwb Triple to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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 2009): 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Better World Books (in 2009): 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.
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.
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 Frank T. Rothaermel, Marne L. Arthaud-Day, Konstantinos Grigoriou 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.
Innovation driven organization
– Bwb Triple is one of the most innovative firm in sector. Manager in Better World Books (in 2009): Social Entrepreneurship and the Triple Bottom Line Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Better World Books (in 2009): 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 2009): Social Entrepreneurship and the Triple Bottom Line are -
Aligning sales with marketing
– It come across in the case study Better World Books (in 2009): 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 2009): 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.
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.
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 2009): 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Better World Books (in 2009): 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.
Capital Spending Reduction
– Even during the low interest decade, Bwb Triple 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.
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 2009): Social Entrepreneurship and the Triple Bottom Line should strive to include more intangible value offerings along with its core products and services.
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.
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.
Need for greater diversity
– Bwb Triple 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Better World Books (in 2009): 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Better World Books (in 2009): 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.
Opportunities Better World Books (in 2009): 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 2009): Social Entrepreneurship and the Triple Bottom Line 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 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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bwb Triple 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.
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.
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 2009): 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.
Loyalty marketing
– Bwb Triple 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.
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 2009): 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.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Bwb Triple to increase its market reach. Bwb Triple 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.
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.
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.
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 2009): 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.
Threats Better World Books (in 2009): 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 2009): Social Entrepreneurship and the Triple Bottom Line are -
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.
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.
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.
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.
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.
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 2009): Social Entrepreneurship and the Triple Bottom Line .
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.
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.
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.
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.
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.
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.
Weighted SWOT Analysis of Better World Books (in 2009): 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 2009): 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 2009): 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 2009): 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 2009): 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.
