Nacre (B): a Steep and Risky Climb to Success SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Nacre (B): a Steep and Risky Climb to Success
This case B cannot be taught as a stand-alone case, but is a direct continuation of the FocusCase "Nacre: Turning a Lab Idea into a High-Growth Firm (A)" [EFC-2-E]. This case B describes the strategic decisions and actions of the CEO and how eventually, this firm - with only 12-15 employees at that time (plus a large contract manufacturer) - manages to land a US-$30 million deal with the US Marine Corp. Soon after, this company is acquired by a large corporation, making this deal the most successful exit in Europe in that year (2007). Afterwards the firm gets integrated into the new parent corporation and proves to be one of the best technologies available in the market. A related video [EV-6] with the CEO is providing complimentary information and material to teach the case.
Authors :: Julia Prats Moreno, Marc Sosna, Dave Darsch
Swot Analysis of "Nacre (B): a Steep and Risky Climb to Success" written by Julia Prats Moreno, Marc Sosna, Dave Darsch includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nacre Complimentary facing as an external strategic factors. Some of the topics covered in Nacre (B): a Steep and Risky Climb to Success case study are - Strategic Management Strategies, Operations management, Product development, Security & privacy and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Nacre (B): a Steep and Risky Climb to Success casestudy better are - – technology disruption, increasing energy prices, increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion,
challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Nacre (B): a Steep and Risky Climb to Success
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Nacre (B): a Steep and Risky Climb to Success case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nacre Complimentary, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nacre Complimentary 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 Nacre (B): a Steep and Risky Climb to Success can be done for the following purposes –
1. Strategic planning using facts provided in Nacre (B): a Steep and Risky Climb to Success case study
2. Improving business portfolio management of Nacre Complimentary
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 Nacre Complimentary
Strengths Nacre (B): a Steep and Risky Climb to Success | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nacre Complimentary in Nacre (B): a Steep and Risky Climb to Success Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Nacre Complimentary 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.
Learning organization
- Nacre Complimentary 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 Nacre Complimentary is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Nacre (B): a Steep and Risky Climb to Success Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Nacre Complimentary 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 recruit top talent
– Nacre Complimentary is one of the leading recruiters in the industry. Managers in the Nacre (B): a Steep and Risky Climb to Success are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Nacre Complimentary 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.
Ability to lead change in Innovation & Entrepreneurship field
– Nacre Complimentary 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 Nacre Complimentary in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Nacre Complimentary 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 Nacre (B): a Steep and Risky Climb to Success - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Nacre Complimentary in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Nacre Complimentary is present in almost all the verticals within the industry. This has provided firm in Nacre (B): a Steep and Risky Climb to Success 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
– Nacre Complimentary has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nacre Complimentary 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.
Organizational Resilience of Nacre Complimentary
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Nacre Complimentary does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Nacre Complimentary has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nacre Complimentary to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Nacre (B): a Steep and Risky Climb to Success | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Nacre (B): a Steep and Risky Climb to Success are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Nacre (B): a Steep and Risky Climb to Success, is just above the industry average. Nacre Complimentary 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 Nacre (B): a Steep and Risky Climb to Success, 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.
Skills based hiring
– The stress on hiring functional specialists at Nacre Complimentary 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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Nacre Complimentary supply chain. Even after few cautionary changes mentioned in the HBR case study - Nacre (B): a Steep and Risky Climb to Success, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nacre Complimentary vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Nacre Complimentary 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Nacre Complimentary 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.
Lack of clear differentiation of Nacre Complimentary products
– To increase the profitability and margins on the products, Nacre Complimentary needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Nacre (B): a Steep and Risky Climb to Success HBR case study mentions - Nacre Complimentary 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 Nacre (B): a Steep and Risky Climb to Success, in the dynamic environment Nacre Complimentary has struggled to respond to the nimble upstart competition. Nacre Complimentary 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 Nacre (B): a Steep and Risky Climb to Success 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 Nacre Complimentary 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Nacre Complimentary 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. Nacre Complimentary 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.
Opportunities Nacre (B): a Steep and Risky Climb to Success | 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 Nacre (B): a Steep and Risky Climb to Success are -
Better consumer reach
– The expansion of the 5G network will help Nacre Complimentary to increase its market reach. Nacre Complimentary 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.
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. Nacre Complimentary can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Nacre Complimentary 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.
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 Nacre Complimentary in the consumer business. Now Nacre Complimentary can target international markets with far fewer capital restrictions requirements than the existing system.
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 Nacre Complimentary 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.
Loyalty marketing
– Nacre Complimentary 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.
Leveraging digital technologies
– Nacre Complimentary 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Nacre Complimentary can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Nacre Complimentary 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.
Creating value in data economy
– The success of analytics program of Nacre Complimentary has opened avenues for new revenue streams for the organization in the industry. This can help Nacre Complimentary to build a more holistic ecosystem as suggested in the Nacre (B): a Steep and Risky Climb to Success case study. Nacre Complimentary can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Nacre Complimentary 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Nacre Complimentary can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Nacre Complimentary can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nacre Complimentary can use these opportunities to build new business models that can help the communities that Nacre Complimentary operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Threats Nacre (B): a Steep and Risky Climb to Success External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Nacre (B): a Steep and Risky Climb to Success are -
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. Nacre Complimentary needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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 Nacre Complimentary.
Technology acceleration in Forth Industrial Revolution
– Nacre Complimentary has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Nacre Complimentary 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.
Shortening product life cycle
– it is one of the major threat that Nacre Complimentary is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Nacre Complimentary 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.
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 Nacre Complimentary in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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.
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
– Nacre Complimentary 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
– Nacre Complimentary 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. Nacre Complimentary can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
High dependence on third party suppliers
– Nacre Complimentary 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.
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 Nacre Complimentary business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Nacre (B): a Steep and Risky Climb to Success, Nacre Complimentary 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 Nacre (B): a Steep and Risky Climb to Success 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 Nacre (B): a Steep and Risky Climb to Success 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 Nacre (B): a Steep and Risky Climb to Success 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 Nacre (B): a Steep and Risky Climb to Success 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 Nacre (B): a Steep and Risky Climb to Success 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 Nacre Complimentary needs to make to build a sustainable competitive advantage.
