The Cradle Dilemma, Investing in Adoption Learning Partners SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Cradle Dilemma, Investing in Adoption Learning Partners
As CEO of not-for-profit adoption agency The Cradle, Julie Tye had taken the organization from the brink of dissolution in 1992 to a position of financial stability and health by 2007. One of the innovative steps Tye took in 2002 was to introduce an online learning venture that provided education for families preparing to adopt. The Cradle launched Adoption Learning Partners (ALP), using donated funds and government grants when possible and subsidizing the rest. The income generated by ALP grew from zero in 2002 to approximately $50,000 per month in 2007. But ALP's major market (parents preparing to adopt internationally) was forecasted to decline 50% over the next three years; the Web site was outdated; and new competitors were entering the market. ALP had built a reputation as a pioneer in adoption e-learning by providing high-quality, effective online courses. But without the infusion of at least $400,000, ALP risked losing its leadership position and, possibly, its viability. ALP needed a significant investment of time, talent, and funding. Tye had an MBA, a keen business sense, and fourteen years of experience in healthcare administration and the social services field. Even with her leadership, did The Cradle have the appetite to take on such a demanding strategy? In the end, would it be worth the investment?
Authors :: Marianne Woodward, Kathryn Bauer, Scott T. Whitaker
Swot Analysis of "The Cradle Dilemma, Investing in Adoption Learning Partners" written by Marianne Woodward, Kathryn Bauer, Scott T. Whitaker includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Alp Cradle facing as an external strategic factors. Some of the topics covered in The Cradle Dilemma, Investing in Adoption Learning Partners case study are - Strategic Management Strategies, Generational issues, Strategy and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the The Cradle Dilemma, Investing in Adoption Learning Partners casestudy better are - – digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy,
supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of The Cradle Dilemma, Investing in Adoption Learning Partners
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Cradle Dilemma, Investing in Adoption Learning Partners case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Alp Cradle, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Alp Cradle 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 The Cradle Dilemma, Investing in Adoption Learning Partners can be done for the following purposes –
1. Strategic planning using facts provided in The Cradle Dilemma, Investing in Adoption Learning Partners case study
2. Improving business portfolio management of Alp Cradle
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 Alp Cradle
Strengths The Cradle Dilemma, Investing in Adoption Learning Partners | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Alp Cradle in The Cradle Dilemma, Investing in Adoption Learning Partners Harvard Business Review case study are -
Ability to recruit top talent
– Alp Cradle is one of the leading recruiters in the industry. Managers in the The Cradle Dilemma, Investing in Adoption Learning Partners are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the The Cradle Dilemma, Investing in Adoption Learning Partners 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
– The Cradle Dilemma, Investing in Adoption Learning Partners firm has clearly differentiated products in the market place. This has enabled Alp Cradle to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Alp Cradle to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Alp Cradle has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Alp Cradle 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.
Strong track record of project management
– Alp Cradle is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Alp Cradle is present in almost all the verticals within the industry. This has provided firm in The Cradle Dilemma, Investing in Adoption Learning Partners 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.
Learning organization
- Alp Cradle 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 Alp Cradle is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Cradle Dilemma, Investing in Adoption Learning Partners Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Alp Cradle in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Alp Cradle 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 The Cradle Dilemma, Investing in Adoption Learning Partners - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Alp Cradle has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Alp Cradle to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Alp Cradle in the sector have low bargaining power. The Cradle Dilemma, Investing in Adoption Learning Partners has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Alp Cradle to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Alp Cradle has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in The Cradle Dilemma, Investing in Adoption Learning Partners HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses The Cradle Dilemma, Investing in Adoption Learning Partners | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Cradle Dilemma, Investing in Adoption Learning Partners are -
High operating costs
– Compare to the competitors, firm in the HBR case study The Cradle Dilemma, Investing in Adoption Learning Partners 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 Alp Cradle 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Alp Cradle is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Alp Cradle needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Alp Cradle to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Alp Cradle 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 - The Cradle Dilemma, Investing in Adoption Learning Partners should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Cradle Dilemma, Investing in Adoption Learning Partners, it seems that the employees of Alp Cradle 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.
Interest costs
– Compare to the competition, Alp Cradle 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.
High cash cycle compare to competitors
Alp Cradle 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.
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 Alp Cradle supply chain. Even after few cautionary changes mentioned in the HBR case study - The Cradle Dilemma, Investing in Adoption Learning Partners, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Alp Cradle vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Cradle Dilemma, Investing in Adoption Learning Partners, is just above the industry average. Alp Cradle 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Alp Cradle 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.
No frontier risks strategy
– After analyzing the HBR case study The Cradle Dilemma, Investing in Adoption Learning Partners, 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.
Low market penetration in new markets
– Outside its home market of Alp Cradle, firm in the HBR case study The Cradle Dilemma, Investing in Adoption Learning Partners needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities The Cradle Dilemma, Investing in Adoption Learning Partners | 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 The Cradle Dilemma, Investing in Adoption Learning Partners are -
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. Alp Cradle 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. Alp Cradle 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.
Using analytics as competitive advantage
– Alp Cradle 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 The Cradle Dilemma, Investing in Adoption Learning Partners - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Alp Cradle to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Alp Cradle 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Alp Cradle is facing challenges because of the dominance of functional experts in the organization. The Cradle Dilemma, Investing in Adoption Learning Partners 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.
Developing new processes and practices
– Alp Cradle 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.
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. Alp Cradle can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Alp Cradle 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.
Creating value in data economy
– The success of analytics program of Alp Cradle has opened avenues for new revenue streams for the organization in the industry. This can help Alp Cradle to build a more holistic ecosystem as suggested in the The Cradle Dilemma, Investing in Adoption Learning Partners case study. Alp Cradle can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Alp Cradle can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Cradle Dilemma, Investing in Adoption Learning Partners 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.
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 Alp Cradle in the consumer business. Now Alp Cradle can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Alp Cradle can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Alp Cradle 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.
Manufacturing automation
– Alp Cradle can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Threats The Cradle Dilemma, Investing in Adoption Learning Partners External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Cradle Dilemma, Investing in Adoption Learning Partners are -
Regulatory challenges
– Alp Cradle 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 acceleration in Forth Industrial Revolution
– Alp Cradle has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Alp Cradle 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.
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. Alp Cradle can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Alp Cradle business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Alp Cradle 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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Alp Cradle will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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 Alp Cradle.
Environmental challenges
– Alp Cradle 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. Alp Cradle can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Alp Cradle 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 The Cradle Dilemma, Investing in Adoption Learning Partners .
Consumer confidence and its impact on Alp Cradle 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.
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 Alp Cradle in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Alp Cradle is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of The Cradle Dilemma, Investing in Adoption Learning Partners 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 The Cradle Dilemma, Investing in Adoption Learning Partners 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 The Cradle Dilemma, Investing in Adoption Learning Partners 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 The Cradle Dilemma, Investing in Adoption Learning Partners 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 The Cradle Dilemma, Investing in Adoption Learning Partners 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 Alp Cradle needs to make to build a sustainable competitive advantage.