Forbind Systems (B): The Way Forward SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Forbind Systems (B): The Way Forward
This case B about a young Danish VC-backed technology company in the supply-chain software sector trying to overcome a multitude of challenges related to this type of companies cannot be taught as a stand-alone case, but is a direct continuation of the FocusCase "Forbind Systems (A): Hired to Hell A?Crisis Management from Day 1A? [EFC-10-E]". This second part illustrated the decisions the CEO took with regard to strategy, business model, financing, internationalization and the overall survival strategy of the firm and describes which consequences this had.
Authors :: Julia Prats Moreno, Marc Sosna, Dave Darsch
Swot Analysis of "Forbind Systems (B): The Way Forward" written by Julia Prats Moreno, Marc Sosna, Dave Darsch includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Forbind 1a facing as an external strategic factors. Some of the topics covered in Forbind Systems (B): The Way Forward case study are - Strategic Management Strategies, Business models, Crisis management, Growth strategy and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Forbind Systems (B): The Way Forward casestudy better are - – there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, increasing commodity prices, increasing government debt because of Covid-19 spendings, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion,
banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Forbind Systems (B): The Way Forward
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Forbind Systems (B): The Way Forward case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Forbind 1a, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Forbind 1a 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 Forbind Systems (B): The Way Forward can be done for the following purposes –
1. Strategic planning using facts provided in Forbind Systems (B): The Way Forward case study
2. Improving business portfolio management of Forbind 1a
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 Forbind 1a
Strengths Forbind Systems (B): The Way Forward | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Forbind 1a in Forbind Systems (B): The Way Forward Harvard Business Review case study are -
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Forbind 1a digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Forbind 1a 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.
Training and development
– Forbind 1a has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Forbind Systems (B): The Way Forward 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.
Operational resilience
– The operational resilience strategy in the Forbind Systems (B): The Way Forward 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Forbind Systems (B): The Way Forward firm has clearly differentiated products in the market place. This has enabled Forbind 1a to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Forbind 1a to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Forbind 1a is one of the leading recruiters in the industry. Managers in the Forbind Systems (B): The Way Forward are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Forbind 1a 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.
Strong track record of project management
– Forbind 1a is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Forbind 1a
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Forbind 1a does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Forbind 1a 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 Forbind Systems (B): The Way Forward - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Forbind 1a 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 Julia Prats Moreno, Marc Sosna, Dave Darsch 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.
Ability to lead change in Innovation & Entrepreneurship field
– Forbind 1a 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 Forbind 1a in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Forbind 1a has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Forbind 1a 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.
Weaknesses Forbind Systems (B): The Way Forward | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Forbind Systems (B): The Way Forward are -
Skills based hiring
– The stress on hiring functional specialists at Forbind 1a 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.
Increasing silos among functional specialists
– The organizational structure of Forbind 1a is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Forbind 1a needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Forbind 1a to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Forbind Systems (B): The Way Forward, 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 Forbind Systems (B): The Way Forward 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 Forbind 1a 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Forbind 1a 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 bargaining power of channel partners
– Because of the regulatory requirements, Julia Prats Moreno, Marc Sosna, Dave Darsch suggests that, Forbind 1a is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Low market penetration in new markets
– Outside its home market of Forbind 1a, firm in the HBR case study Forbind Systems (B): The Way Forward needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Forbind 1a products
– To increase the profitability and margins on the products, Forbind 1a needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Forbind 1a 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 - Forbind Systems (B): The Way Forward should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Forbind Systems (B): The Way Forward 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 Forbind 1a has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Forbind Systems (B): The Way Forward 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 Forbind Systems (B): The Way Forward can leverage the sales team experience to cultivate customer relationships as Forbind 1a is planning to shift buying processes online.
Opportunities Forbind Systems (B): The Way Forward | 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 Forbind Systems (B): The Way Forward are -
Using analytics as competitive advantage
– Forbind 1a 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 Forbind Systems (B): The Way Forward - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Forbind 1a to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Forbind 1a can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Forbind 1a can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Forbind 1a 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Forbind 1a 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Forbind 1a 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, Forbind Systems (B): The Way Forward, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Forbind 1a 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 Forbind 1a to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Forbind 1a 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.
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 Forbind 1a in the consumer business. Now Forbind 1a can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Forbind 1a 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.
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 Forbind 1a 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.
Building a culture of innovation
– managers at Forbind 1a 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Forbind 1a is facing challenges because of the dominance of functional experts in the organization. Forbind Systems (B): The Way Forward 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.
Threats Forbind Systems (B): The Way Forward External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Forbind Systems (B): The Way Forward are -
Technology acceleration in Forth Industrial Revolution
– Forbind 1a has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Forbind 1a 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.
Increasing wage structure of Forbind 1a
– 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 Forbind 1a.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Forbind 1a with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Forbind 1a 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. Forbind 1a can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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. Forbind 1a can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Forbind 1a.
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 Forbind 1a business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Forbind 1a 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 Forbind Systems (B): The Way Forward, Forbind 1a 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 .
Stagnating economy with rate increase
– Forbind 1a 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.
Regulatory challenges
– Forbind 1a 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.
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.
Weighted SWOT Analysis of Forbind Systems (B): The Way Forward 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 Forbind Systems (B): The Way Forward 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 Forbind Systems (B): The Way Forward 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 Forbind Systems (B): The Way Forward 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 Forbind Systems (B): The Way Forward 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 Forbind 1a needs to make to build a sustainable competitive advantage.
