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 - – technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, increasing transportation and logistics costs, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic ,
increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, 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 -
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.
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.
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.
Strong track record of project management
– Improbable Abrahams is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Improbable Abrahams in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
Learning organization
- Improbable Abrahams 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 Improbable Abrahams is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Marc Abrahams: Annals of an Improbable Entrepreneur Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Improbable Abrahams 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 Boris Groysberg, Michael Slind 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.
Successful track record of launching new products
– Improbable Abrahams has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Improbable Abrahams 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.
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.
Training and development
– Improbable Abrahams has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Marc Abrahams: Annals of an Improbable Entrepreneur Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
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.
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 to strategic competitive environment developments
– As Marc Abrahams: Annals of an Improbable Entrepreneur HBR case study mentions - Improbable Abrahams 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.
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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Improbable Abrahams is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Marc Abrahams: Annals of an Improbable Entrepreneur can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Improbable Abrahams 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 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Marc Abrahams: Annals of an Improbable Entrepreneur, in the dynamic environment Improbable Abrahams has struggled to respond to the nimble upstart competition. Improbable Abrahams has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Improbable Abrahams 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.
Interest costs
– Compare to the competition, Improbable Abrahams has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
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.
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.
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 -
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.
Developing new processes and practices
– Improbable Abrahams 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Improbable Abrahams can use these opportunities to build new business models that can help the communities that Improbable Abrahams operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
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.
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.
Building a culture of innovation
– managers at Improbable Abrahams can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Innovation & Entrepreneurship segment.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Improbable Abrahams can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Marc Abrahams: Annals of an Improbable Entrepreneur, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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.
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.
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.
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 -
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Improbable Abrahams 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.
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 .
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.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Improbable Abrahams can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Environmental challenges
– Improbable Abrahams 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. Improbable Abrahams can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Improbable Abrahams 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 Marc Abrahams: Annals of an Improbable Entrepreneur .
Consumer confidence and its impact on Improbable Abrahams demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
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.
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. Improbable Abrahams 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.
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.
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.