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(parents preparing to adopt internationally) was forecasted to decline 50% over the next three years; the Web site was outdated; and new competitors were entering the market.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 - – challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, supply chains are disrupted by pandemic , wage bills are increasing, central banks are concerned over increasing inflation, increasing transportation and logistics costs,
increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, 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 -
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.
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.
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.
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.
Ability to lead change in Innovation & Entrepreneurship field
– Alp Cradle 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 Alp Cradle in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Alp Cradle 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.
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.
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.
Innovation driven organization
– Alp Cradle is one of the most innovative firm in sector. Manager in The Cradle Dilemma, Investing in Adoption Learning Partners Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Alp Cradle digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Alp Cradle 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.
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 -
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.
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.
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.
Slow to strategic competitive environment developments
– As The Cradle Dilemma, Investing in Adoption Learning Partners HBR case study mentions - Alp Cradle 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Cradle Dilemma, Investing in Adoption Learning Partners, in the dynamic environment Alp Cradle has struggled to respond to the nimble upstart competition. Alp Cradle has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Alp Cradle is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Cradle Dilemma, Investing in Adoption Learning Partners can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Marianne Woodward, Kathryn Bauer, Scott T. Whitaker suggests that, Alp Cradle 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 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.
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.
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.
Aligning sales with marketing
– It come across in the case study The Cradle Dilemma, Investing in Adoption Learning Partners 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 The Cradle Dilemma, Investing in Adoption Learning Partners can leverage the sales team experience to cultivate customer relationships as Alp Cradle is planning to shift buying processes online.
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 -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Alp Cradle 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, The Cradle Dilemma, Investing in Adoption Learning Partners, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Alp Cradle 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.
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.
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. Alp Cradle can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Alp Cradle 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Alp Cradle can use these opportunities to build new business models that can help the communities that Alp Cradle operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
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.
Building a culture of innovation
– managers at Alp Cradle 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.
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 -
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.
High dependence on third party suppliers
– Alp Cradle 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.
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 .
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Cradle Dilemma, Investing in Adoption Learning Partners, Alp Cradle 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
– Alp Cradle 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.
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.
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.
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.
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.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Alp Cradle with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.