John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B)
What makes an industry attractive? What role do innovation and entrepreneurial initiative play in building and sustaining a new business in a competitive industry? The A case presents the story of 14-year U.S. Navy veteran John "Rooster" Clagett, who left his career as a fighter pilot to pursue a business career. That step has landed him where he is at the moment: founder and president of Visual Training Solutions Group (VTSG). Clagett's current product offering is a virtual-reality training system designed for fighter pilots. While VTSG has several current government contracts, all of them are due to deliver in the next few months, leaving the pipeline dry in the near future. Rooster is concerned that he may not have the funding to meet his working-capital needs through the end of the year. In addition to the tactical issue of working capital, Rooster is faced with a decision about the future direction of the company. His product has started to gain traction, and large competitors are starting to take notice. Rooster sees several options: forging ahead and taking the large players head on, creating a plan to try to partner with them, or taking his innovative product in a different direction and to a different industry. He is unsure of the competitive environment in the e-learning industry. Is that industry an attractive place in which to compete? He had gained a foothold in the Department of Defense because of his unique knowledge, but would he be as successful outside his comfort zone? The B case (UV2012) offers a short epilogue revealing Rooster's success in meeting his funding needs, his decision to stay in the defense industry, and the birth of strategic alliances with several large defense contractors.
Swot Analysis of "John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B)" written by Gregory Fairchild, Richard Banyard includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rooster Clagett facing as an external strategic factors. Some of the topics covered in John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) case study are - Strategic Management Strategies, Competition, Entrepreneurial finance, Entrepreneurial management, Joint ventures, Marketing, Product development and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) casestudy better are - – increasing government debt because of Covid-19 spendings, technology disruption, talent flight as more people leaving formal jobs, geopolitical disruptions, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rooster Clagett, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rooster Clagett 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 John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) can be done for the following purposes –
1. Strategic planning using facts provided in John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) case study
2. Improving business portfolio management of Rooster Clagett
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 Rooster Clagett
Strengths John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rooster Clagett in John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) Harvard Business Review case study are -
High brand equity
– Rooster Clagett has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rooster Clagett to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Rooster Clagett has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) 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.
Highly skilled collaborators
– Rooster Clagett 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 John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Rooster Clagett has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rooster Clagett 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.
Ability to recruit top talent
– Rooster Clagett is one of the leading recruiters in the industry. Managers in the John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Rooster Clagett in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Rooster Clagett 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 Gregory Fairchild, Richard Banyard 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) firm has clearly differentiated products in the market place. This has enabled Rooster Clagett to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Rooster Clagett to invest into research and development (R&D) and innovation.
Organizational Resilience of Rooster Clagett
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Rooster Clagett does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Rooster Clagett 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Rooster Clagett digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Rooster Clagett 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.
Learning organization
- Rooster Clagett 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 Rooster Clagett is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) are -
Increasing silos among functional specialists
– The organizational structure of Rooster Clagett is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Rooster Clagett needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Rooster Clagett to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Rooster Clagett 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.
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 Rooster Clagett supply chain. Even after few cautionary changes mentioned in the HBR case study - John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Rooster Clagett vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B), it seems that the employees of Rooster Clagett 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.
Low market penetration in new markets
– Outside its home market of Rooster Clagett, firm in the HBR case study John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) 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 Rooster Clagett 's lucrative customers.
Slow to strategic competitive environment developments
– As John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) HBR case study mentions - Rooster Clagett 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Gregory Fairchild, Richard Banyard suggests that, Rooster Clagett is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
No frontier risks strategy
– After analyzing the HBR case study John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B), 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 Rooster Clagett 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.
Capital Spending Reduction
– Even during the low interest decade, Rooster Clagett 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 John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) | 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 John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Rooster Clagett can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Rooster Clagett 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.
Loyalty marketing
– Rooster Clagett 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.
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 Rooster Clagett in the consumer business. Now Rooster Clagett can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Rooster Clagett to increase its market reach. Rooster Clagett 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.
Using analytics as competitive advantage
– Rooster Clagett 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 John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rooster Clagett to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Rooster Clagett 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 Rooster Clagett has opened avenues for new revenue streams for the organization in the industry. This can help Rooster Clagett to build a more holistic ecosystem as suggested in the John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) case study. Rooster Clagett can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Rooster Clagett 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.
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. Rooster Clagett 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, Rooster Clagett 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, John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Rooster Clagett 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 Rooster Clagett to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Rooster Clagett 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.
Threats John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Rooster Clagett 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 John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) .
Environmental challenges
– Rooster Clagett 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. Rooster Clagett can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Increasing wage structure of Rooster Clagett
– 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 Rooster Clagett.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B), Rooster Clagett 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
– Rooster Clagett has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Rooster Clagett 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rooster Clagett with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Rooster Clagett 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Rooster Clagett 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.
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 Rooster Clagett business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Rooster Clagett 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. Rooster Clagett 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. Rooster Clagett needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Weighted SWOT Analysis of John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) 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 John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) 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 John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) 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 John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) 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 John "Rooster" Clagett: Visual Training Solutions Group, Inc. (B) 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 Rooster Clagett needs to make to build a sustainable competitive advantage.