Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life
In April 2010, the eruption of a volcano wreaked havoc in the airline industry and placed Aer Arann on the brink of liquidation. For founder, sole owner and chairman Padraig O'Ceidigh, the airline has been a personal as well as business passion. The case provides a number of options for addressing the crisis. It also places the story in the context of Padraig's life journey and search for multi-dimensional success.
Swot Analysis of "Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life" written by Janet Kraus, Shirley M. Spence includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Arann O'ceidigh facing as an external strategic factors. Some of the topics covered in Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life case study are - Strategic Management Strategies, Work-life balance and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life casestudy better are - – cloud computing is disrupting traditional business models, geopolitical disruptions, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, supply chains are disrupted by pandemic ,
wage bills are increasing, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Arann O'ceidigh, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Arann O'ceidigh 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 Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life can be done for the following purposes –
1. Strategic planning using facts provided in Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life case study
2. Improving business portfolio management of Arann O'ceidigh
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 Arann O'ceidigh
Strengths Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Arann O'ceidigh in Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life Harvard Business Review case study are -
Successful track record of launching new products
– Arann O'ceidigh has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Arann O'ceidigh 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.
Operational resilience
– The operational resilience strategy in the Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life 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.
Learning organization
- Arann O'ceidigh 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 Arann O'ceidigh is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Arann O'ceidigh has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Arann O'ceidigh to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Arann O'ceidigh is one of the leading recruiters in the industry. Managers in the Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Arann O'ceidigh in the sector have low bargaining power. Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Arann O'ceidigh to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Arann O'ceidigh 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.
Effective Research and Development (R&D)
– Arann O'ceidigh 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 Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Innovation & Entrepreneurship field
– Arann O'ceidigh 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 Arann O'ceidigh in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Arann O'ceidigh digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Arann O'ceidigh 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
– Arann O'ceidigh 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 Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Arann O'ceidigh 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 Janet Kraus, Shirley M. Spence 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.
Weaknesses Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life are -
Slow to strategic competitive environment developments
– As Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life HBR case study mentions - Arann O'ceidigh 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.
Increasing silos among functional specialists
– The organizational structure of Arann O'ceidigh is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Arann O'ceidigh needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Arann O'ceidigh to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life, 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.
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 Arann O'ceidigh supply chain. Even after few cautionary changes mentioned in the HBR case study - Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Arann O'ceidigh vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Arann O'ceidigh 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life, is just above the industry average. Arann O'ceidigh 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.
Low market penetration in new markets
– Outside its home market of Arann O'ceidigh, firm in the HBR case study Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life, it seems that the employees of Arann O'ceidigh 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Arann O'ceidigh is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Arann O'ceidigh 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. Arann O'ceidigh 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 operating costs
– Compare to the competitors, firm in the HBR case study Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life 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 Arann O'ceidigh 's lucrative customers.
Opportunities Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life | 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 Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life are -
Buying journey improvements
– Arann O'ceidigh can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Arann O'ceidigh is facing challenges because of the dominance of functional experts in the organization. Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life 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.
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. Arann O'ceidigh 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. Arann O'ceidigh 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.
Manufacturing automation
– Arann O'ceidigh 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Arann O'ceidigh 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, Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life, 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 Arann O'ceidigh 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
– Arann O'ceidigh 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 Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Arann O'ceidigh to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Arann O'ceidigh 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.
Leveraging digital technologies
– Arann O'ceidigh 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Arann O'ceidigh 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Arann O'ceidigh 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.
Better consumer reach
– The expansion of the 5G network will help Arann O'ceidigh to increase its market reach. Arann O'ceidigh 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.
Building a culture of innovation
– managers at Arann O'ceidigh 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.
Threats Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Arann O'ceidigh 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 Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life .
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. Arann O'ceidigh needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Increasing wage structure of Arann O'ceidigh
– 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 Arann O'ceidigh.
Regulatory challenges
– Arann O'ceidigh 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.
Stagnating economy with rate increase
– Arann O'ceidigh 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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 Arann O'ceidigh.
High dependence on third party suppliers
– Arann O'ceidigh 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.
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 Arann O'ceidigh in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life, Arann O'ceidigh 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 .
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. Arann O'ceidigh can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Arann O'ceidigh has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Arann O'ceidigh 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.
Weighted SWOT Analysis of Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life 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 Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life 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 Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life 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 Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life 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 Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life 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 Arann O'ceidigh needs to make to build a sustainable competitive advantage.
