Marc Abrahams: Annals of an Improbable Entrepreneur SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Marc Abrahams: Annals of an Improbable Entrepreneur
Marc Abrahams was a media entrepreneur who specialized in science humor. In 2008, he sought to boost the scale and monetization potential of his business. That business, called Improbable Research, encompassed a magazine (Annals of Improbable Research), a high-profile annual event (the Ig Nobel Prize Ceremony), a web site (improbable.com), a series of books, and various public appearances. This case uses the story of the "improbable" emergence and expansion of that business to investigate the challenges and opportunities faced by an individual who seeks to build an enterprise around his own human capital. It includes background information on Abrahams's earlier career, a summary of the various segments of his company, and a discussion of recent efforts by Abrahams to break free of constraints that have limited the size and revenue-generating ability of Improbable Research for many years. Among those efforts are a decision to distribute magazine content over the Internet for free and a major investment in producing video content for the web. The case concludes by presenting various options under consideration by Abrahams--options that dealt both with external challenges (How should he define his brand? Which markets should he target?) and with internal challenges (Are there key positions that he should hire to fill?). The case also features lively exhibits that illustrate Abrahams's value proposition, analyze his business model and revenue sources, and so forth.
Swot Analysis of "Marc Abrahams: Annals of an Improbable Entrepreneur" written by Boris Groysberg, Michael Slind includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Improbable Abrahams facing as an external strategic factors. Some of the topics covered in Marc Abrahams: Annals of an Improbable Entrepreneur case study are - Strategic Management Strategies, Entrepreneurship, Informal leadership, Leadership development, Leading teams and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Marc Abrahams: Annals of an Improbable Entrepreneur casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, central banks are concerned over increasing inflation, geopolitical disruptions, there is increasing trade war between United States & China, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%,
challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Marc Abrahams: Annals of an Improbable Entrepreneur
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Marc Abrahams: Annals of an Improbable Entrepreneur case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Improbable Abrahams, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Improbable Abrahams 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 Marc Abrahams: Annals of an Improbable Entrepreneur can be done for the following purposes –
1. Strategic planning using facts provided in Marc Abrahams: Annals of an Improbable Entrepreneur case study
2. Improving business portfolio management of Improbable Abrahams
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 Improbable Abrahams
Strengths Marc Abrahams: Annals of an Improbable Entrepreneur | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Improbable Abrahams in Marc Abrahams: Annals of an Improbable Entrepreneur Harvard Business Review case study are -
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Marc Abrahams: Annals of an Improbable Entrepreneur firm has clearly differentiated products in the market place. This has enabled Improbable Abrahams to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Improbable Abrahams to invest into research and development (R&D) and innovation.
Ability to lead change in Innovation & Entrepreneurship field
– Improbable Abrahams 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 Improbable Abrahams in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Improbable Abrahams in the sector have low bargaining power. Marc Abrahams: Annals of an Improbable Entrepreneur has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Improbable Abrahams to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Marc Abrahams: Annals of an Improbable Entrepreneur 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.
Diverse revenue streams
– Improbable Abrahams is present in almost all the verticals within the industry. This has provided firm in Marc Abrahams: Annals of an Improbable Entrepreneur 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.
Ability to recruit top talent
– Improbable Abrahams is one of the leading recruiters in the industry. Managers in the Marc Abrahams: Annals of an Improbable Entrepreneur 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)
– Improbable Abrahams 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 Marc Abrahams: Annals of an Improbable Entrepreneur - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Improbable Abrahams 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.
High switching costs
– The high switching costs that Improbable Abrahams 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.
High brand equity
– Improbable Abrahams has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Improbable Abrahams to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Improbable Abrahams digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Improbable Abrahams 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.
Highly skilled collaborators
– Improbable Abrahams has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Marc Abrahams: Annals of an Improbable Entrepreneur HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Marc Abrahams: Annals of an Improbable Entrepreneur | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Marc Abrahams: Annals of an Improbable Entrepreneur are -
Slow decision making process
– As mentioned earlier in the report, Improbable Abrahams 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. Improbable Abrahams 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.
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 Improbable Abrahams supply chain. Even after few cautionary changes mentioned in the HBR case study - Marc Abrahams: Annals of an Improbable Entrepreneur, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Improbable Abrahams vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Improbable Abrahams is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Improbable Abrahams needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Improbable Abrahams to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Marc Abrahams: Annals of an Improbable Entrepreneur 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 Improbable Abrahams has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Marc Abrahams: Annals of an Improbable Entrepreneur, it seems that the employees of Improbable Abrahams 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Marc Abrahams: Annals of an Improbable Entrepreneur, is just above the industry average. Improbable Abrahams 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Improbable Abrahams 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.
Aligning sales with marketing
– It come across in the case study Marc Abrahams: Annals of an Improbable Entrepreneur 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 Marc Abrahams: Annals of an Improbable Entrepreneur can leverage the sales team experience to cultivate customer relationships as Improbable Abrahams is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Marc Abrahams: Annals of an Improbable Entrepreneur 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 Improbable Abrahams 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Marc Abrahams: Annals of an Improbable Entrepreneur, 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.
Capital Spending Reduction
– Even during the low interest decade, Improbable Abrahams 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.
Opportunities Marc Abrahams: Annals of an Improbable Entrepreneur | 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 Marc Abrahams: Annals of an Improbable Entrepreneur 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 Improbable Abrahams in the consumer business. Now Improbable Abrahams 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 Improbable Abrahams has opened avenues for new revenue streams for the organization in the industry. This can help Improbable Abrahams to build a more holistic ecosystem as suggested in the Marc Abrahams: Annals of an Improbable Entrepreneur case study. Improbable Abrahams 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 Improbable Abrahams 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 Improbable Abrahams to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Improbable Abrahams 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.
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. Improbable Abrahams can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Improbable Abrahams 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Improbable Abrahams 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Improbable Abrahams can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Improbable Abrahams 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.
Manufacturing automation
– Improbable Abrahams 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.
Using analytics as competitive advantage
– Improbable Abrahams 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 Marc Abrahams: Annals of an Improbable Entrepreneur - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Improbable Abrahams to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Improbable Abrahams is facing challenges because of the dominance of functional experts in the organization. Marc Abrahams: Annals of an Improbable Entrepreneur 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.
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. Improbable Abrahams can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Marc Abrahams: Annals of an Improbable Entrepreneur External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Marc Abrahams: Annals of an Improbable Entrepreneur are -
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Improbable Abrahams with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Improbable Abrahams 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.
High dependence on third party suppliers
– Improbable Abrahams 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Marc Abrahams: Annals of an Improbable Entrepreneur, Improbable Abrahams 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 Improbable Abrahams in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Improbable Abrahams 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.
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. Improbable Abrahams needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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.
Shortening product life cycle
– it is one of the major threat that Improbable Abrahams 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
– Improbable Abrahams has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Improbable Abrahams 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 Improbable Abrahams business can come under increasing regulations regarding data privacy, data security, etc.
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 Improbable Abrahams.
Weighted SWOT Analysis of Marc Abrahams: Annals of an Improbable Entrepreneur 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 Marc Abrahams: Annals of an Improbable Entrepreneur 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 Marc Abrahams: Annals of an Improbable Entrepreneur 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 Marc Abrahams: Annals of an Improbable Entrepreneur 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 Marc Abrahams: Annals of an Improbable Entrepreneur 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 Improbable Abrahams needs to make to build a sustainable competitive advantage.
