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Transcape Systems: Creating a Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Transcape Systems: Creating a Market


Entrepreneurial companies must overcome substantial barriers to create markets for innovative products in industries reluctant to embrace change. Transcape Systems faces this callenge as it attempts to create a market for interactive multimedia software in the conservative cardiovascular fitness industry. Their software is designed to exercise both mind and body, thereby making cardiovascular exercise more interesting and fun. Having created several CD-ROM titles, the company must convince manufacturers of cardiovascular exercise equipment to build and market machines capable of playing CD-ROMS. Accelerating the creation of an installed base of these machines is becoming increasingly critical to the cash-strapped start-up. As the founders re-evaluate their strategy, they consider market segmentation, exclusive vs. non-exclusive partnerships, diversification, and conflict in the distribution channel.

Authors :: Thomas J. Kosnik, Dave Frampton

Topics :: Innovation & Entrepreneurship

Tags :: IT, Marketing, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Transcape Systems: Creating a Market" written by Thomas J. Kosnik, Dave Frampton includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cardiovascular Transcape facing as an external strategic factors. Some of the topics covered in Transcape Systems: Creating a Market case study are - Strategic Management Strategies, IT, Marketing and Innovation & Entrepreneurship.


Some of the macro environment factors that can be used to understand the Transcape Systems: Creating a Market casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, technology disruption, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, etc



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Introduction to SWOT Analysis of Transcape Systems: Creating a Market


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Transcape Systems: Creating a Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cardiovascular Transcape, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cardiovascular Transcape 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 Transcape Systems: Creating a Market can be done for the following purposes –
1. Strategic planning using facts provided in Transcape Systems: Creating a Market case study
2. Improving business portfolio management of Cardiovascular Transcape
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 Cardiovascular Transcape




Strengths Transcape Systems: Creating a Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Cardiovascular Transcape in Transcape Systems: Creating a Market Harvard Business Review case study are -

High switching costs

– The high switching costs that Cardiovascular Transcape 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.

Learning organization

- Cardiovascular Transcape 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 Cardiovascular Transcape is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Transcape Systems: Creating a Market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Low bargaining power of suppliers

– Suppliers of Cardiovascular Transcape in the sector have low bargaining power. Transcape Systems: Creating a Market has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cardiovascular Transcape to manage not only supply disruptions but also source products at highly competitive prices.

Innovation driven organization

– Cardiovascular Transcape is one of the most innovative firm in sector. Manager in Transcape Systems: Creating a Market Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Analytics focus

– Cardiovascular Transcape 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 Thomas J. Kosnik, Dave Frampton 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 lead change in Innovation & Entrepreneurship field

– Cardiovascular Transcape 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 Cardiovascular Transcape 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 Cardiovascular Transcape digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cardiovascular Transcape 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.

Cross disciplinary teams

– Horizontal connected teams at the Cardiovascular Transcape 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.

High brand equity

– Cardiovascular Transcape has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cardiovascular Transcape to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Superior customer experience

– The customer experience strategy of Cardiovascular Transcape in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Diverse revenue streams

– Cardiovascular Transcape is present in almost all the verticals within the industry. This has provided firm in Transcape Systems: Creating a Market 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.

Ability to recruit top talent

– Cardiovascular Transcape is one of the leading recruiters in the industry. Managers in the Transcape Systems: Creating a Market are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.






Weaknesses Transcape Systems: Creating a Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Transcape Systems: Creating a Market are -

Slow to strategic competitive environment developments

– As Transcape Systems: Creating a Market HBR case study mentions - Cardiovascular Transcape 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Cardiovascular Transcape needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Transcape Systems: Creating a Market, is just above the industry average. Cardiovascular Transcape 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.

Lack of clear differentiation of Cardiovascular Transcape products

– To increase the profitability and margins on the products, Cardiovascular Transcape needs to provide more differentiated products than what it is currently offering in the marketplace.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Transcape Systems: Creating a Market HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Cardiovascular Transcape has relatively successful track record of launching new products.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Transcape Systems: Creating a Market, it seems that the employees of Cardiovascular Transcape 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.

Interest costs

– Compare to the competition, Cardiovascular Transcape 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.

Products dominated business model

– Even though Cardiovascular Transcape 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 - Transcape Systems: Creating a Market should strive to include more intangible value offerings along with its core products and services.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Transcape Systems: Creating a Market, in the dynamic environment Cardiovascular Transcape has struggled to respond to the nimble upstart competition. Cardiovascular Transcape 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 Cardiovascular Transcape 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.

Need for greater diversity

– Cardiovascular Transcape 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.




Opportunities Transcape Systems: Creating a Market | 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 Transcape Systems: Creating a Market are -

Learning at scale

– Online learning technologies has now opened space for Cardiovascular Transcape 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.

Better consumer reach

– The expansion of the 5G network will help Cardiovascular Transcape to increase its market reach. Cardiovascular Transcape 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cardiovascular Transcape can use these opportunities to build new business models that can help the communities that Cardiovascular Transcape operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.

Buying journey improvements

– Cardiovascular Transcape can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Transcape Systems: Creating a Market 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Cardiovascular Transcape 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.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Cardiovascular Transcape can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Loyalty marketing

– Cardiovascular Transcape 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Cardiovascular Transcape can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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. Cardiovascular Transcape can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Creating value in data economy

– The success of analytics program of Cardiovascular Transcape has opened avenues for new revenue streams for the organization in the industry. This can help Cardiovascular Transcape to build a more holistic ecosystem as suggested in the Transcape Systems: Creating a Market case study. Cardiovascular Transcape can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Manufacturing automation

– Cardiovascular Transcape 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cardiovascular Transcape 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 Cardiovascular Transcape to hire the very best people irrespective of their geographical location.

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 Cardiovascular Transcape in the consumer business. Now Cardiovascular Transcape can target international markets with far fewer capital restrictions requirements than the existing system.




Threats Transcape Systems: Creating a Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Transcape Systems: Creating a Market are -

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Cardiovascular Transcape 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.

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. Cardiovascular Transcape can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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 acceleration in Forth Industrial Revolution

– Cardiovascular Transcape has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Cardiovascular Transcape 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 Transcape Systems: Creating a Market, Cardiovascular Transcape 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 .

Consumer confidence and its impact on Cardiovascular Transcape 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.

Environmental challenges

– Cardiovascular Transcape 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. Cardiovascular Transcape can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Cardiovascular Transcape business can come under increasing regulations regarding data privacy, data security, 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. Cardiovascular Transcape will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Cardiovascular Transcape 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 Transcape Systems: Creating a Market .

Shortening product life cycle

– it is one of the major threat that Cardiovascular Transcape is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Regulatory challenges

– Cardiovascular Transcape 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cardiovascular Transcape with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.




Weighted SWOT Analysis of Transcape Systems: Creating a Market 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 Transcape Systems: Creating a Market 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 Transcape Systems: Creating a Market 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 Transcape Systems: Creating a Market 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 Transcape Systems: Creating a Market 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 Cardiovascular Transcape needs to make to build a sustainable competitive advantage.



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