Shaping an Industry in Your Favor SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Shaping an Industry in Your Favor
In 1939, at the age of 26, Lew Wasserman arrived in Los Angeles with the talent agency MCA. Over the next three decades, he took MCA from a peripheral player to becoming the dominant studio in Hollywood. How did an outsider manage to change the competitive landscape of the entire moviemaking industry so completely? A study of this fascinating historical account reveals the process by which a firm can achieve "architectural advantage." Managers may be familiar with the idea that "shocks" brought on by technological and regulatory changes can trigger the emergence of novel industry structures. The Wasserman case shows there is more to it than that. An innovative business model, by itself, is not sufficient. Rather, the acquisition of mispriced resources by newcomers and the incumbents' (in)action are also critical for newcomers to enter the industry, redraw its boundaries and achieve architectural advantage. Are there opportunities for your company to position itself in segments that would put it in the dominant position? Wasserman's experience in the movie and television business, as well as other timely examples drawn from music and publishing, provide useful insights for managers operating in industries with unstable, contested architectures; entrepreneurial firms trying to develop architectural advantage in an emerging industry; and venture capitalists trying to identify investment opportunities.
Swot Analysis of "Shaping an Industry in Your Favor" written by Fabrizio Ferraro includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Architectural Wasserman facing as an external strategic factors. Some of the topics covered in Shaping an Industry in Your Favor case study are - Strategic Management Strategies, Change management, Manufacturing and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Shaping an Industry in Your Favor casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, wage bills are increasing, there is backlash against globalization, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation,
digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Shaping an Industry in Your Favor
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Shaping an Industry in Your Favor case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Architectural Wasserman, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Architectural Wasserman 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 Shaping an Industry in Your Favor can be done for the following purposes –
1. Strategic planning using facts provided in Shaping an Industry in Your Favor case study
2. Improving business portfolio management of Architectural Wasserman
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 Architectural Wasserman
Strengths Shaping an Industry in Your Favor | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Architectural Wasserman in Shaping an Industry in Your Favor Harvard Business Review case study are -
High switching costs
– The high switching costs that Architectural Wasserman 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.
Low bargaining power of suppliers
– Suppliers of Architectural Wasserman in the sector have low bargaining power. Shaping an Industry in Your Favor has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Architectural Wasserman to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Architectural Wasserman 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 Shaping an Industry in Your Favor - 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
– Architectural Wasserman has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Architectural Wasserman to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Architectural Wasserman is one of the most innovative firm in sector. Manager in Shaping an Industry in Your Favor Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Architectural Wasserman 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 Architectural Wasserman is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Shaping an Industry in Your Favor Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Architectural Wasserman has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Architectural Wasserman 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.
Analytics focus
– Architectural Wasserman 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 Fabrizio Ferraro 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.
Diverse revenue streams
– Architectural Wasserman is present in almost all the verticals within the industry. This has provided firm in Shaping an Industry in Your Favor 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.
Strong track record of project management
– Architectural Wasserman is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Innovation & Entrepreneurship field
– Architectural Wasserman 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 Architectural Wasserman in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Architectural Wasserman is one of the leading recruiters in the industry. Managers in the Shaping an Industry in Your Favor are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Shaping an Industry in Your Favor | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Shaping an Industry in Your Favor are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Shaping an Industry in Your Favor HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Architectural Wasserman has relatively successful track record of launching new products.
Lack of clear differentiation of Architectural Wasserman products
– To increase the profitability and margins on the products, Architectural Wasserman needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Shaping an Industry in Your Favor, in the dynamic environment Architectural Wasserman has struggled to respond to the nimble upstart competition. Architectural Wasserman has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Shaping an Industry in Your Favor 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 Architectural Wasserman 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Architectural Wasserman is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Shaping an Industry in Your Favor 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, Fabrizio Ferraro suggests that, Architectural Wasserman 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.
Capital Spending Reduction
– Even during the low interest decade, Architectural Wasserman has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Increasing silos among functional specialists
– The organizational structure of Architectural Wasserman is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Architectural Wasserman needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Architectural Wasserman to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Architectural Wasserman 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 - Shaping an Industry in Your Favor should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Shaping an Industry in Your Favor, is just above the industry average. Architectural Wasserman 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.
No frontier risks strategy
– After analyzing the HBR case study Shaping an Industry in Your Favor, 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.
Opportunities Shaping an Industry in Your Favor | 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 Shaping an Industry in Your Favor are -
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 Architectural Wasserman in the consumer business. Now Architectural Wasserman can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Architectural Wasserman has opened avenues for new revenue streams for the organization in the industry. This can help Architectural Wasserman to build a more holistic ecosystem as suggested in the Shaping an Industry in Your Favor case study. Architectural Wasserman can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Architectural Wasserman 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Architectural Wasserman 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 Architectural Wasserman to increase its market reach. Architectural Wasserman 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.
Leveraging digital technologies
– Architectural Wasserman 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.
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. Architectural Wasserman can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Architectural Wasserman 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.
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. Architectural Wasserman can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Architectural Wasserman 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Architectural Wasserman can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Architectural Wasserman 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 Shaping an Industry in Your Favor - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Architectural Wasserman to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Architectural Wasserman can use these opportunities to build new business models that can help the communities that Architectural Wasserman operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Threats Shaping an Industry in Your Favor External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Shaping an Industry in Your Favor are -
Technology acceleration in Forth Industrial Revolution
– Architectural Wasserman has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Architectural Wasserman 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Shaping an Industry in Your Favor, Architectural Wasserman 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 .
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 Architectural Wasserman 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 Architectural Wasserman 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 Architectural Wasserman 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Architectural Wasserman 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 Shaping an Industry in Your Favor .
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.
Regulatory challenges
– Architectural Wasserman 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.
Environmental challenges
– Architectural Wasserman 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. Architectural Wasserman can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Architectural Wasserman with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Architectural Wasserman in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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. Architectural Wasserman needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Shaping an Industry in Your Favor 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 Shaping an Industry in Your Favor 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 Shaping an Industry in Your Favor 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 Shaping an Industry in Your Favor 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 Shaping an Industry in Your Favor 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 Architectural Wasserman needs to make to build a sustainable competitive advantage.
