Business Model Innovation at TutorVista: Personalization and Global Resource Leverage SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Business Model Innovation at TutorVista: Personalization and Global Resource Leverage

How do you convince American parents living in the Midwest to hire tutors from India? How do you convince them to hire a tutor that they and their children will never meet in person? Can you build a personal connection between students and tutors when they are separated by thousands of miles and come from vastly different cultures? These are questions that faced Krishnan Ganesh as he began thinking about remote tutoring. A year later he founded TutorVista, an internet-based remote tutoring services company. So far, the remote tutoring firm seems to have the right answers to all of the questions above.

Authors :: C.K. Prahalad, M.S. Krishnan

Topics :: Innovation & Entrepreneurship

Tags :: , SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Business Model Innovation at TutorVista: Personalization and Global Resource Leverage" written by C.K. Prahalad, M.S. Krishnan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tutoring Tutorvista facing as an external strategic factors. Some of the topics covered in Business Model Innovation at TutorVista: Personalization and Global Resource Leverage case study are - Strategic Management Strategies, and Innovation & Entrepreneurship.

Some of the macro environment factors that can be used to understand the Business Model Innovation at TutorVista: Personalization and Global Resource Leverage casestudy better are - – central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, etc

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Introduction to SWOT Analysis of Business Model Innovation at TutorVista: Personalization and Global Resource Leverage

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Business Model Innovation at TutorVista: Personalization and Global Resource Leverage case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tutoring Tutorvista, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tutoring Tutorvista 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Business Model Innovation at TutorVista: Personalization and Global Resource Leverage can be done for the following purposes –
1. Strategic planning using facts provided in Business Model Innovation at TutorVista: Personalization and Global Resource Leverage case study
2. Improving business portfolio management of Tutoring Tutorvista
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 Tutoring Tutorvista

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Strengths Business Model Innovation at TutorVista: Personalization and Global Resource Leverage | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Tutoring Tutorvista in Business Model Innovation at TutorVista: Personalization and Global Resource Leverage Harvard Business Review case study are -

Training and development

– Tutoring Tutorvista has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Business Model Innovation at TutorVista: Personalization and Global Resource Leverage 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.

Organizational Resilience of Tutoring Tutorvista

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tutoring Tutorvista does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Ability to recruit top talent

– Tutoring Tutorvista is one of the leading recruiters in the industry. Managers in the Business Model Innovation at TutorVista: Personalization and Global Resource Leverage are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Diverse revenue streams

– Tutoring Tutorvista is present in almost all the verticals within the industry. This has provided firm in Business Model Innovation at TutorVista: Personalization and Global Resource Leverage 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.

Successful track record of launching new products

– Tutoring Tutorvista has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tutoring Tutorvista 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.

Digital Transformation in Innovation & Entrepreneurship segment

- digital transformation varies from industry to industry. For Tutoring Tutorvista digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tutoring Tutorvista 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.

Superior customer experience

– The customer experience strategy of Tutoring Tutorvista in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Innovation driven organization

– Tutoring Tutorvista is one of the most innovative firm in sector. Manager in Business Model Innovation at TutorVista: Personalization and Global Resource Leverage Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Operational resilience

– The operational resilience strategy in the Business Model Innovation at TutorVista: Personalization and Global Resource Leverage 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.

Cross disciplinary teams

– Horizontal connected teams at the Tutoring Tutorvista 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.

Learning organization

- Tutoring Tutorvista 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 Tutoring Tutorvista is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Business Model Innovation at TutorVista: Personalization and Global Resource Leverage Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Ability to lead change in Innovation & Entrepreneurship field

– Tutoring Tutorvista 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 Tutoring Tutorvista in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

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Weaknesses Business Model Innovation at TutorVista: Personalization and Global Resource Leverage | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Business Model Innovation at TutorVista: Personalization and Global Resource Leverage are -

Interest costs

– Compare to the competition, Tutoring Tutorvista 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.

Aligning sales with marketing

– It come across in the case study Business Model Innovation at TutorVista: Personalization and Global Resource Leverage 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 Business Model Innovation at TutorVista: Personalization and Global Resource Leverage can leverage the sales team experience to cultivate customer relationships as Tutoring Tutorvista is planning to shift buying processes online.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Business Model Innovation at TutorVista: Personalization and Global Resource Leverage 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 Tutoring Tutorvista has relatively successful track record of launching new products.

High operating costs

– Compare to the competitors, firm in the HBR case study Business Model Innovation at TutorVista: Personalization and Global Resource Leverage 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 Tutoring Tutorvista 's lucrative customers.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Business Model Innovation at TutorVista: Personalization and Global Resource Leverage, it seems that the employees of Tutoring Tutorvista 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.

Low market penetration in new markets

– Outside its home market of Tutoring Tutorvista, firm in the HBR case study Business Model Innovation at TutorVista: Personalization and Global Resource Leverage needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

No frontier risks strategy

– After analyzing the HBR case study Business Model Innovation at TutorVista: Personalization and Global Resource Leverage, 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Business Model Innovation at TutorVista: Personalization and Global Resource Leverage, is just above the industry average. Tutoring Tutorvista 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.

Products dominated business model

– Even though Tutoring Tutorvista 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 - Business Model Innovation at TutorVista: Personalization and Global Resource Leverage should strive to include more intangible value offerings along with its core products and services.

Skills based hiring

– The stress on hiring functional specialists at Tutoring Tutorvista 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.

Slow decision making process

– As mentioned earlier in the report, Tutoring Tutorvista 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. Tutoring Tutorvista 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.

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Opportunities Business Model Innovation at TutorVista: Personalization and Global Resource Leverage | 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 Business Model Innovation at TutorVista: Personalization and Global Resource Leverage are -

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Tutoring Tutorvista can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Tutoring Tutorvista 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.

Building a culture of innovation

– managers at Tutoring Tutorvista 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.

Developing new processes and practices

– Tutoring Tutorvista 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tutoring Tutorvista 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 Tutoring Tutorvista to hire the very best people irrespective of their geographical location.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Tutoring Tutorvista is facing challenges because of the dominance of functional experts in the organization. Business Model Innovation at TutorVista: Personalization and Global Resource Leverage 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.

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. Tutoring Tutorvista can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Better consumer reach

– The expansion of the 5G network will help Tutoring Tutorvista to increase its market reach. Tutoring Tutorvista 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.

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. Tutoring Tutorvista can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Loyalty marketing

– Tutoring Tutorvista 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.

Learning at scale

– Online learning technologies has now opened space for Tutoring Tutorvista 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.

Leveraging digital technologies

– Tutoring Tutorvista 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Tutoring Tutorvista 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, Business Model Innovation at TutorVista: Personalization and Global Resource Leverage, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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Threats Business Model Innovation at TutorVista: Personalization and Global Resource Leverage External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Business Model Innovation at TutorVista: Personalization and Global Resource Leverage are -

Stagnating economy with rate increase

– Tutoring Tutorvista 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

– Tutoring Tutorvista 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. Tutoring Tutorvista can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.

Consumer confidence and its impact on Tutoring Tutorvista 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.

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.

Shortening product life cycle

– it is one of the major threat that Tutoring Tutorvista is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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 Tutoring Tutorvista in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Business Model Innovation at TutorVista: Personalization and Global Resource Leverage, Tutoring Tutorvista 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 .

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. Tutoring Tutorvista can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Technology acceleration in Forth Industrial Revolution

– Tutoring Tutorvista has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Tutoring Tutorvista needs to keep up with the evolution of technology in the Innovation & Entrepreneurship sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tutoring Tutorvista with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

High dependence on third party suppliers

– Tutoring Tutorvista high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

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 Tutoring Tutorvista.

Increasing wage structure of Tutoring Tutorvista

– 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 Tutoring Tutorvista.

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Weighted SWOT Analysis of Business Model Innovation at TutorVista: Personalization and Global Resource Leverage 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 Business Model Innovation at TutorVista: Personalization and Global Resource Leverage 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 Business Model Innovation at TutorVista: Personalization and Global Resource Leverage 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 Business Model Innovation at TutorVista: Personalization and Global Resource Leverage 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 Business Model Innovation at TutorVista: Personalization and Global Resource Leverage 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 Tutoring Tutorvista needs to make to build a sustainable competitive advantage.

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