Swot Analysis of "Parachute Supplement A: A Strategy for ThinkFirst" written by Pratima Bansal, Pam Laughland includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 9b15m122 Thinkfirst facing as an external strategic factors. Some of the topics covered in Parachute Supplement A: A Strategy for ThinkFirst case study are - Strategic Management Strategies, Leadership, Mergers & acquisitions, Social responsibility, Sustainability and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Parachute Supplement A: A Strategy for ThinkFirst casestudy better are - – 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, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing,
there is backlash against globalization, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Parachute Supplement A: A Strategy for ThinkFirst
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Parachute Supplement A: A Strategy for ThinkFirst case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 9b15m122 Thinkfirst, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 9b15m122 Thinkfirst 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 Parachute Supplement A: A Strategy for ThinkFirst can be done for the following purposes –
1. Strategic planning using facts provided in Parachute Supplement A: A Strategy for ThinkFirst case study
2. Improving business portfolio management of 9b15m122 Thinkfirst
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 9b15m122 Thinkfirst
Strengths Parachute Supplement A: A Strategy for ThinkFirst | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 9b15m122 Thinkfirst in Parachute Supplement A: A Strategy for ThinkFirst Harvard Business Review case study are -
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For 9b15m122 Thinkfirst digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. 9b15m122 Thinkfirst 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Parachute Supplement A: A Strategy for ThinkFirst firm has clearly differentiated products in the market place. This has enabled 9b15m122 Thinkfirst to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped 9b15m122 Thinkfirst to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of 9b15m122 Thinkfirst in the sector have low bargaining power. Parachute Supplement A: A Strategy for ThinkFirst has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps 9b15m122 Thinkfirst to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of 9b15m122 Thinkfirst in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- 9b15m122 Thinkfirst 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 9b15m122 Thinkfirst is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Parachute Supplement A: A Strategy for ThinkFirst Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Parachute Supplement A: A Strategy for ThinkFirst 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.
Analytics focus
– 9b15m122 Thinkfirst 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 Pratima Bansal, Pam Laughland 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.
Strong track record of project management
– 9b15m122 Thinkfirst is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– 9b15m122 Thinkfirst is one of the most innovative firm in sector. Manager in Parachute Supplement A: A Strategy for ThinkFirst Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Innovation & Entrepreneurship field
– 9b15m122 Thinkfirst 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 9b15m122 Thinkfirst in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– 9b15m122 Thinkfirst has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled 9b15m122 Thinkfirst to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that 9b15m122 Thinkfirst 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.
Weaknesses Parachute Supplement A: A Strategy for ThinkFirst | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Parachute Supplement A: A Strategy for ThinkFirst are -
High operating costs
– Compare to the competitors, firm in the HBR case study Parachute Supplement A: A Strategy for ThinkFirst 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 9b15m122 Thinkfirst 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, 9b15m122 Thinkfirst has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. 9b15m122 Thinkfirst even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, 9b15m122 Thinkfirst is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Parachute Supplement A: A Strategy for ThinkFirst can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of 9b15m122 Thinkfirst is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. 9b15m122 Thinkfirst needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help 9b15m122 Thinkfirst to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of 9b15m122 Thinkfirst, firm in the HBR case study Parachute Supplement A: A Strategy for ThinkFirst needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of 9b15m122 Thinkfirst products
– To increase the profitability and margins on the products, 9b15m122 Thinkfirst needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Parachute Supplement A: A Strategy for ThinkFirst, it seems that the employees of 9b15m122 Thinkfirst 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Parachute Supplement A: A Strategy for ThinkFirst, in the dynamic environment 9b15m122 Thinkfirst has struggled to respond to the nimble upstart competition. 9b15m122 Thinkfirst has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, 9b15m122 Thinkfirst 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.
Products dominated business model
– Even though 9b15m122 Thinkfirst 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 - Parachute Supplement A: A Strategy for ThinkFirst should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, 9b15m122 Thinkfirst 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.
Opportunities Parachute Supplement A: A Strategy for ThinkFirst | 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 Parachute Supplement A: A Strategy for ThinkFirst are -
Better consumer reach
– The expansion of the 5G network will help 9b15m122 Thinkfirst to increase its market reach. 9b15m122 Thinkfirst will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
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 9b15m122 Thinkfirst 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.
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. 9b15m122 Thinkfirst can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, 9b15m122 Thinkfirst 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, Parachute Supplement A: A Strategy for ThinkFirst, 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 9b15m122 Thinkfirst 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 9b15m122 Thinkfirst to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– 9b15m122 Thinkfirst 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.
Buying journey improvements
– 9b15m122 Thinkfirst can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Parachute Supplement A: A Strategy for ThinkFirst 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
– 9b15m122 Thinkfirst 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.
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 9b15m122 Thinkfirst in the consumer business. Now 9b15m122 Thinkfirst can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– 9b15m122 Thinkfirst 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.
Building a culture of innovation
– managers at 9b15m122 Thinkfirst 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.
Creating value in data economy
– The success of analytics program of 9b15m122 Thinkfirst has opened avenues for new revenue streams for the organization in the industry. This can help 9b15m122 Thinkfirst to build a more holistic ecosystem as suggested in the Parachute Supplement A: A Strategy for ThinkFirst case study. 9b15m122 Thinkfirst can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– 9b15m122 Thinkfirst 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 Parachute Supplement A: A Strategy for ThinkFirst - to build a competitive advantage using analytics. The analytics driven competitive advantage can help 9b15m122 Thinkfirst to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Parachute Supplement A: A Strategy for ThinkFirst External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Parachute Supplement A: A Strategy for ThinkFirst are -
Regulatory challenges
– 9b15m122 Thinkfirst 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.
Shortening product life cycle
– it is one of the major threat that 9b15m122 Thinkfirst is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for 9b15m122 Thinkfirst 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.
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.
Environmental challenges
– 9b15m122 Thinkfirst 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. 9b15m122 Thinkfirst can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Technology acceleration in Forth Industrial Revolution
– 9b15m122 Thinkfirst has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, 9b15m122 Thinkfirst 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.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. 9b15m122 Thinkfirst needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Increasing wage structure of 9b15m122 Thinkfirst
– 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 9b15m122 Thinkfirst.
Consumer confidence and its impact on 9b15m122 Thinkfirst 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.
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. 9b15m122 Thinkfirst 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, 9b15m122 Thinkfirst 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 Parachute Supplement A: A Strategy for ThinkFirst .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Parachute Supplement A: A Strategy for ThinkFirst, 9b15m122 Thinkfirst 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 .
Weighted SWOT Analysis of Parachute Supplement A: A Strategy for ThinkFirst 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 Parachute Supplement A: A Strategy for ThinkFirst 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 Parachute Supplement A: A Strategy for ThinkFirst 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 Parachute Supplement A: A Strategy for ThinkFirst 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 Parachute Supplement A: A Strategy for ThinkFirst 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 9b15m122 Thinkfirst needs to make to build a sustainable competitive advantage.