Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding
This introduction to the special issue on crowdfunding begins by providing some information about the history and nature of the phenomenon. It then summarizes some of the key advantages and disadvantages of crowdfunding for entrepreneurs and for investors, introducing the various articles in the issue that explore these topics in greater depth. It concludes with some speculations regarding the possible future of the industry and its effects on entrepreneurship, innovation, and inequality.
Swot Analysis of "Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding" written by Lee Fleming, Olav Sorenson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Crowdfunding Issue facing as an external strategic factors. Some of the topics covered in Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding case study are - Strategic Management Strategies, Internet, Venture capital and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding casestudy better are - – technology disruption, geopolitical disruptions, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation,
talent flight as more people leaving formal jobs, increasing energy prices, etc
Introduction to SWOT Analysis of Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Crowdfunding Issue, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Crowdfunding Issue 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 Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding can be done for the following purposes –
1. Strategic planning using facts provided in Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding case study
2. Improving business portfolio management of Crowdfunding Issue
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 Crowdfunding Issue
Strengths Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Crowdfunding Issue in Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding Harvard Business Review case study are -
Learning organization
- Crowdfunding Issue 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 Crowdfunding Issue is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Crowdfunding Issue is present in almost all the verticals within the industry. This has provided firm in Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding 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.
Superior customer experience
– The customer experience strategy of Crowdfunding Issue in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding firm has clearly differentiated products in the market place. This has enabled Crowdfunding Issue to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Crowdfunding Issue to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Crowdfunding Issue is one of the leading recruiters in the industry. Managers in the Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Crowdfunding Issue in the sector have low bargaining power. Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Crowdfunding Issue to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Crowdfunding Issue
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Crowdfunding Issue does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Innovation & Entrepreneurship field
– Crowdfunding Issue 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 Crowdfunding Issue in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Crowdfunding Issue is one of the most innovative firm in sector. Manager in Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Crowdfunding Issue 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.
Successful track record of launching new products
– Crowdfunding Issue has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Crowdfunding Issue 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)
– Crowdfunding Issue 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 Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding, is just above the industry average. Crowdfunding Issue 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.
Lack of clear differentiation of Crowdfunding Issue products
– To increase the profitability and margins on the products, Crowdfunding Issue needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Crowdfunding Issue 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Crowdfunding Issue 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Crowdfunding Issue is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding, it seems that the employees of Crowdfunding Issue 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.
Increasing silos among functional specialists
– The organizational structure of Crowdfunding Issue is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Crowdfunding Issue needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Crowdfunding Issue to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding, 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 operating costs
– Compare to the competitors, firm in the HBR case study Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding 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 Crowdfunding Issue 's lucrative customers.
Slow to strategic competitive environment developments
– As Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding HBR case study mentions - Crowdfunding Issue takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Skills based hiring
– The stress on hiring functional specialists at Crowdfunding Issue 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.
Opportunities Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding | 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 Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding are -
Learning at scale
– Online learning technologies has now opened space for Crowdfunding Issue 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 Crowdfunding Issue 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.
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. Crowdfunding Issue 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
– Crowdfunding Issue can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding 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.
Leveraging digital technologies
– Crowdfunding Issue 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.
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 Crowdfunding Issue in the consumer business. Now Crowdfunding Issue can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Crowdfunding Issue 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.
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. Crowdfunding Issue can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Crowdfunding Issue 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. Crowdfunding Issue 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.
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 Crowdfunding Issue to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Crowdfunding Issue is facing challenges because of the dominance of functional experts in the organization. Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding 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 Crowdfunding Issue has opened avenues for new revenue streams for the organization in the industry. This can help Crowdfunding Issue to build a more holistic ecosystem as suggested in the Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding case study. Crowdfunding Issue 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, Crowdfunding Issue 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, Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding, 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 Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding are -
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Crowdfunding Issue 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, Crowdfunding Issue 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 Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding .
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 Crowdfunding Issue business can come under increasing regulations regarding data privacy, data security, 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.
Stagnating economy with rate increase
– Crowdfunding Issue 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.
Increasing wage structure of Crowdfunding Issue
– 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 Crowdfunding Issue.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Crowdfunding Issue 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Crowdfunding Issue with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Crowdfunding Issue is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding, Crowdfunding Issue 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 .
Environmental challenges
– Crowdfunding Issue 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. Crowdfunding Issue can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
High dependence on third party suppliers
– Crowdfunding Issue 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.
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 Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding 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 Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding 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 Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding 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 Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding 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 Financing by and for the Masses: An Introduction to the Special Issue on Crowdfunding 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 Crowdfunding Issue needs to make to build a sustainable competitive advantage.
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