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, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, supply chains are disrupted by pandemic , increasing transportation and logistics costs,
increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, 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 -
Ability to recruit top talent
– 9b15m122 Thinkfirst is one of the leading recruiters in the industry. Managers in the Parachute Supplement A: A Strategy for ThinkFirst are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– 9b15m122 Thinkfirst 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 Parachute Supplement A: A Strategy for ThinkFirst - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
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.
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.
Successful track record of launching new products
– 9b15m122 Thinkfirst has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 9b15m122 Thinkfirst 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.
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.
Cross disciplinary teams
– Horizontal connected teams at the 9b15m122 Thinkfirst are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
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.
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 -
Aligning sales with marketing
– It come across in the case study Parachute Supplement A: A Strategy for ThinkFirst 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 Parachute Supplement A: A Strategy for ThinkFirst can leverage the sales team experience to cultivate customer relationships as 9b15m122 Thinkfirst is planning to shift buying processes online.
High cash cycle compare to competitors
9b15m122 Thinkfirst 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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Parachute Supplement A: A Strategy for ThinkFirst, is just above the industry average. 9b15m122 Thinkfirst 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 Parachute Supplement A: A Strategy for ThinkFirst HBR case study mentions - 9b15m122 Thinkfirst 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.
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.
Skills based hiring
– The stress on hiring functional specialists at 9b15m122 Thinkfirst 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.
Need for greater diversity
– 9b15m122 Thinkfirst has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High bargaining power of channel partners
– Because of the regulatory requirements, Pratima Bansal, Pam Laughland suggests that, 9b15m122 Thinkfirst 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.
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.
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.
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 -
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.
Loyalty marketing
– 9b15m122 Thinkfirst 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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for 9b15m122 Thinkfirst 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.
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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects 9b15m122 Thinkfirst can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, 9b15m122 Thinkfirst 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.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, 9b15m122 Thinkfirst is facing challenges because of the dominance of functional experts in the organization. Parachute Supplement A: A Strategy for ThinkFirst 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 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 -
High dependence on third party suppliers
– 9b15m122 Thinkfirst 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, 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 .
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.
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.
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 9b15m122 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 .
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 9b15m122 Thinkfirst in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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.
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.
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 9b15m122 Thinkfirst business can come under increasing regulations regarding data privacy, data security, etc.
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.
Stagnating economy with rate increase
– 9b15m122 Thinkfirst 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
– 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.
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.
