Swot Analysis of "Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened" 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 - What Happened 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 - What Happened casestudy better are - – there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, increasing household debt because of falling income levels,
increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened
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 - What Happened 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 - What Happened 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 - What Happened 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 - What Happened | 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 - What Happened Harvard Business Review case study are -
Innovation driven organization
– Arann O'ceidigh is one of the most innovative firm in sector. Manager in Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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 - What Happened are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened 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.
Superior customer experience
– The customer experience strategy of Arann O'ceidigh in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Arann O'ceidigh is present in almost all the verticals within the industry. This has provided firm in Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened 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.
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 - What Happened 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.
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.
Organizational Resilience of Arann O'ceidigh
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Arann O'ceidigh does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
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 - What Happened - 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 Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened | 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 - What Happened are -
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 - What Happened can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
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.
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 - What Happened needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 - What Happened, 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.
Slow to strategic competitive environment developments
– As Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened, in the dynamic environment Arann O'ceidigh has struggled to respond to the nimble upstart competition. Arann O'ceidigh has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Arann O'ceidigh 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.
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 - What Happened, 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.
Need for greater diversity
– Arann O'ceidigh 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.
Products dominated business model
– Even though Arann O'ceidigh 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 - Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened should strive to include more intangible value offerings along with its core products and services.
Opportunities Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened | 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 - What Happened are -
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. Arann O'ceidigh can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Arann O'ceidigh can use these opportunities to build new business models that can help the communities that Arann O'ceidigh 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 Arann O'ceidigh 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 Arann O'ceidigh in the consumer business. Now Arann O'ceidigh can target international markets with far fewer capital restrictions requirements than the existing system.
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 - What Happened 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.
Creating value in data economy
– The success of analytics program of Arann O'ceidigh has opened avenues for new revenue streams for the organization in the industry. This can help Arann O'ceidigh to build a more holistic ecosystem as suggested in the Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened case study. Arann O'ceidigh can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 - What Happened 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.
Developing new processes and practices
– Arann O'ceidigh 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, 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.
Threats Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened 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 - What Happened are -
Environmental challenges
– Arann O'ceidigh 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. Arann O'ceidigh can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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 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.
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.
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 - What Happened .
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Arann O'ceidigh with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Shortening product life cycle
– it is one of the major threat that Arann O'ceidigh is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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. Arann O'ceidigh 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.
Weighted SWOT Analysis of Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life - What Happened 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 - What Happened 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 - What Happened 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 - What Happened 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 - What Happened 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.
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