Building Innovation at Terrapin Bright Green SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Building Innovation at Terrapin Bright Green
Describes Terrapin Bright Green, an environmental consulting and strategic planning firm, and its approach for creating integrative, systematic solutions to green-building conundrums through consulting, research, and policy-related activities. Emphasis is placed on the role of integrated design and the intensive team-based "charrette" process in Terrapin's consulting work as well as on the design trends of biophilia and biomimicry. The case focuses on the sustainable redesign of 111 8th Avenue, New York, New York, to explore the challenge of managing strategic, intangible services in the context of Terrapin's more concrete focus historically. A serendipitous discovery leads the founders to consider how the firm could systematize its process while maintaining the flexibility that made it successful.
Authors :: Amy C. Edmondson, Sydney Ribot, Mary Saunders
Swot Analysis of "Building Innovation at Terrapin Bright Green" written by Amy C. Edmondson, Sydney Ribot, Mary Saunders includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Terrapin's Terrapin facing as an external strategic factors. Some of the topics covered in Building Innovation at Terrapin Bright Green case study are - Strategic Management Strategies, Design, Entrepreneurship, Financial management, Government, Growth strategy, Intellectual property, Marketing, Operations management, Organizational culture and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Building Innovation at Terrapin Bright Green casestudy better are - – increasing transportation and logistics costs, supply chains are disrupted by pandemic , increasing commodity prices, geopolitical disruptions, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models,
challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Building Innovation at Terrapin Bright Green
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Building Innovation at Terrapin Bright Green case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Terrapin's Terrapin, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Terrapin's Terrapin 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 Building Innovation at Terrapin Bright Green can be done for the following purposes –
1. Strategic planning using facts provided in Building Innovation at Terrapin Bright Green case study
2. Improving business portfolio management of Terrapin's Terrapin
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 Terrapin's Terrapin
Strengths Building Innovation at Terrapin Bright Green | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Terrapin's Terrapin in Building Innovation at Terrapin Bright Green Harvard Business Review case study are -
Analytics focus
– Terrapin's Terrapin 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 Amy C. Edmondson, Sydney Ribot, Mary Saunders 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.
Superior customer experience
– The customer experience strategy of Terrapin's Terrapin in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Terrapin's Terrapin is one of the most innovative firm in sector. Manager in Building Innovation at Terrapin Bright Green Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Terrapin's Terrapin is one of the leading recruiters in the industry. Managers in the Building Innovation at Terrapin Bright Green are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Terrapin's Terrapin has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Building Innovation at Terrapin Bright Green 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)
– Terrapin's Terrapin 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 Building Innovation at Terrapin Bright Green - 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
– Terrapin's Terrapin has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Terrapin's Terrapin to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Building Innovation at Terrapin Bright Green 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.
Low bargaining power of suppliers
– Suppliers of Terrapin's Terrapin in the sector have low bargaining power. Building Innovation at Terrapin Bright Green has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Terrapin's Terrapin to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Terrapin's Terrapin 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 Building Innovation at Terrapin Bright Green HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Innovation & Entrepreneurship field
– Terrapin's Terrapin 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 Terrapin's Terrapin in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Terrapin's Terrapin is present in almost all the verticals within the industry. This has provided firm in Building Innovation at Terrapin Bright Green 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.
Weaknesses Building Innovation at Terrapin Bright Green | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Building Innovation at Terrapin Bright Green are -
High operating costs
– Compare to the competitors, firm in the HBR case study Building Innovation at Terrapin Bright Green 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 Terrapin's Terrapin 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Terrapin's Terrapin is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Terrapin's Terrapin needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Terrapin's Terrapin to focus more on services rather than just following the product 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 Terrapin's Terrapin supply chain. Even after few cautionary changes mentioned in the HBR case study - Building Innovation at Terrapin Bright Green, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Terrapin's Terrapin vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Terrapin's Terrapin 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.
Slow decision making process
– As mentioned earlier in the report, Terrapin's Terrapin 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. Terrapin's Terrapin 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.
Low market penetration in new markets
– Outside its home market of Terrapin's Terrapin, firm in the HBR case study Building Innovation at Terrapin Bright Green needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Terrapin's Terrapin 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 - Building Innovation at Terrapin Bright Green should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Terrapin's Terrapin products
– To increase the profitability and margins on the products, Terrapin's Terrapin needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Terrapin's Terrapin 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Building Innovation at Terrapin Bright Green, is just above the industry average. Terrapin's Terrapin 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Building Innovation at Terrapin Bright Green, in the dynamic environment Terrapin's Terrapin has struggled to respond to the nimble upstart competition. Terrapin's Terrapin has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Building Innovation at Terrapin Bright Green | 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 Building Innovation at Terrapin Bright Green are -
Manufacturing automation
– Terrapin's Terrapin 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.
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. Terrapin's Terrapin can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Terrapin's Terrapin 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.
Creating value in data economy
– The success of analytics program of Terrapin's Terrapin has opened avenues for new revenue streams for the organization in the industry. This can help Terrapin's Terrapin to build a more holistic ecosystem as suggested in the Building Innovation at Terrapin Bright Green case study. Terrapin's Terrapin can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Terrapin's Terrapin 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. Terrapin's Terrapin 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.
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. Terrapin's Terrapin can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Terrapin's Terrapin can use these opportunities to build new business models that can help the communities that Terrapin's Terrapin operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Terrapin's Terrapin can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Terrapin's Terrapin in the consumer business. Now Terrapin's Terrapin can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Terrapin's Terrapin 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.
Better consumer reach
– The expansion of the 5G network will help Terrapin's Terrapin to increase its market reach. Terrapin's Terrapin 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.
Developing new processes and practices
– Terrapin's Terrapin 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Terrapin's Terrapin 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.
Threats Building Innovation at Terrapin Bright Green External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Building Innovation at Terrapin Bright Green are -
Environmental challenges
– Terrapin's Terrapin 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. Terrapin's Terrapin 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 Terrapin's Terrapin business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Terrapin's Terrapin with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Terrapin's Terrapin.
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. Terrapin's Terrapin needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Regulatory challenges
– Terrapin's Terrapin 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.
Shortening product life cycle
– it is one of the major threat that Terrapin's Terrapin is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Terrapin's Terrapin 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.
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. Terrapin's Terrapin 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.
Increasing wage structure of Terrapin's Terrapin
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Terrapin's Terrapin.
Stagnating economy with rate increase
– Terrapin's Terrapin 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.
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.
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. Terrapin's Terrapin can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Building Innovation at Terrapin Bright Green 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 Building Innovation at Terrapin Bright Green 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 Building Innovation at Terrapin Bright Green 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 Building Innovation at Terrapin Bright Green 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 Building Innovation at Terrapin Bright Green 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 Terrapin's Terrapin needs to make to build a sustainable competitive advantage.