John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) 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. (A)
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. (A)" 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. (A) 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. (A) casestudy better are - – geopolitical disruptions, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, increasing energy prices, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels,
supply chains are disrupted by pandemic , increasing commodity prices, etc
Introduction to SWOT Analysis of John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A)
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. (A) 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. (A) can be done for the following purposes –
1. Strategic planning using facts provided in John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) 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. (A) | 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. (A) Harvard Business Review case study are -
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.
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.
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. (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
Ability to lead change in Innovation & Entrepreneurship field
– Rooster Clagett 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 Rooster Clagett in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Rooster Clagett is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Rooster Clagett in the sector have low bargaining power. John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rooster Clagett to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) 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.
Innovation driven organization
– Rooster Clagett is one of the most innovative firm in sector. Manager in John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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. (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Rooster Clagett 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 John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) - 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 John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) | 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. (A) are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Rooster Clagett is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) 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 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.
Slow to strategic competitive environment developments
– As John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) 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 operating costs
– Compare to the competitors, firm in the HBR case study John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) 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.
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 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.
Slow decision making process
– As mentioned earlier in the report, Rooster Clagett 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. Rooster Clagett 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.
No frontier risks strategy
– After analyzing the HBR case study John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A), 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A), in the dynamic environment Rooster Clagett has struggled to respond to the nimble upstart competition. Rooster Clagett has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Aligning sales with marketing
– It come across in the case study John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) can leverage the sales team experience to cultivate customer relationships as Rooster Clagett is planning to shift buying processes online.
Opportunities John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) | 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. (A) are -
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.
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 Rooster Clagett 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.
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.
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.
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.
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.
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. (A) 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.
Buying journey improvements
– Rooster Clagett can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) 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.
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. Rooster Clagett 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. Rooster Clagett 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.
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. (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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. (A) - 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.
Threats John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) 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. (A) are -
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. Rooster Clagett can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Rooster Clagett.
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.
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.
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. (A) .
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.
Consumer confidence and its impact on Rooster Clagett 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.
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.
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. (A), 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 .
Regulatory challenges
– Rooster Clagett 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.
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.
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.
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.
Weighted SWOT Analysis of John "Rooster" Clagett: Visual Training Solutions Group, Inc. (A) 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. (A) 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. (A) 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. (A) 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. (A) 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.
