WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA
This case study shows the struggle of Brockhaus, publisher of Germany's best-known encyclopedia, to survive two major challenges: (1) the advent of digital encyclopedias marketed on CD-ROM and (2) the rise of online encyclopedias which are accessible free of charge. While Brockhaus was able to successfully deal with the emergence digital encyclopedias in its war against Microsoft, the company stumbled over the rise of digital encyclopedias and ultimately had to abandon the market for encyclopedias which it had dominated for over a century.The case is structured in three sections. Section one describes Brockhaus' response to the emergence of digital encyclopedias and identifies the main reasons for why the company was able to successfully deal with this innovation. At the end of section one, participants are asked to analyze (1) the strategic situation Brockhaus faced when dealing with digital encyclopedias; (2) the actions of Brockhaus in response to the advent of digital encyclopedias; and (3) the reasons for why Brockhaus successfully dealt with this strategic challenge. Section two contains a review of two theoretical concepts: disruptive innovation theory and the value curve. This theory section should provide the participants with the tools necessary to understand radical innovations and to successfully respond to them. Section three describes Brockhaus' war against Wikipedia and the actions Brockhaus took to deal with online ecyclopedias. At the end of the section, participants are asked (1) to analyze how the strategic challenge brought about by online encyclopedias differs from the challenge resulting from the rise of digital encyclopedias; and (2) to use the value curve concept to design possible strategies in response to the emergence of online encyclopedias. In a wrap-up following section three, the case describes that Brockhaus ultimately failed at successfully dealing with the emergence of online encyclopedias and had to leave the market. Learning objectives: The aim of the case is to enable participants to understand that the emergence of Microsoft's Encarta and Wikipedia both represented major challenges for Brockhaus, but that they differed in a very important aspect: While the emergence of digital encyclopedias was a continuous change, the emergence of online encyclopedias was a discontinuous one. This fundamental difference lies at the heart of Brockhaus's failure since the company tried to tackle both situations with the same strategic approach. In addition, participants will learn to assess whether a strategic challenge is discontinuous or not, to recognize typical behavioral patterns in response to discontinuous change and how these can be overcome.
Authors :: Enders Albrecht, Andreas Konig, Harald Hungenberg, Johannes Muck
Swot Analysis of "WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA" written by Enders Albrecht, Andreas Konig, Harald Hungenberg, Johannes Muck includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Encyclopedias Brockhaus facing as an external strategic factors. Some of the topics covered in WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA case study are - Strategic Management Strategies, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA casestudy better are - – increasing household debt because of falling income levels, wage bills are increasing, central banks are concerned over increasing inflation, geopolitical disruptions, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion,
increasing government debt because of Covid-19 spendings, increasing energy prices, etc
Introduction to SWOT Analysis of WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Encyclopedias Brockhaus, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Encyclopedias Brockhaus 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 WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA can be done for the following purposes –
1. Strategic planning using facts provided in WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA case study
2. Improving business portfolio management of Encyclopedias Brockhaus
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Encyclopedias Brockhaus
Strengths WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Encyclopedias Brockhaus in WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA Harvard Business Review case study are -
Learning organization
- Encyclopedias Brockhaus 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 Encyclopedias Brockhaus is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Encyclopedias Brockhaus 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 WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA - 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 Leadership & Managing People field
– Encyclopedias Brockhaus 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 Encyclopedias Brockhaus in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Leadership & Managing People industry
– WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA firm has clearly differentiated products in the market place. This has enabled Encyclopedias Brockhaus to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Encyclopedias Brockhaus to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Encyclopedias Brockhaus 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 WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Encyclopedias Brockhaus 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 switching costs
– The high switching costs that Encyclopedias Brockhaus 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.
High brand equity
– Encyclopedias Brockhaus has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Encyclopedias Brockhaus to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Encyclopedias Brockhaus digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Encyclopedias Brockhaus 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.
Organizational Resilience of Encyclopedias Brockhaus
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Encyclopedias Brockhaus does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Encyclopedias Brockhaus 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 Enders Albrecht, Andreas Konig, Harald Hungenberg, Johannes Muck 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.
Innovation driven organization
– Encyclopedias Brockhaus is one of the most innovative firm in sector. Manager in WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA 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 Encyclopedias Brockhaus has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA, in the dynamic environment Encyclopedias Brockhaus has struggled to respond to the nimble upstart competition. Encyclopedias Brockhaus has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Encyclopedias Brockhaus 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.
High operating costs
– Compare to the competitors, firm in the HBR case study WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA 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 Encyclopedias Brockhaus 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Encyclopedias Brockhaus 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 WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA 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 WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA can leverage the sales team experience to cultivate customer relationships as Encyclopedias Brockhaus is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Products dominated business model
– Even though Encyclopedias Brockhaus 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 - WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Enders Albrecht, Andreas Konig, Harald Hungenberg, Johannes Muck suggests that, Encyclopedias Brockhaus 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.
Interest costs
– Compare to the competition, Encyclopedias Brockhaus 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.
Slow decision making process
– As mentioned earlier in the report, Encyclopedias Brockhaus 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. Encyclopedias Brockhaus 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.
Opportunities WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA | 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 WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA are -
Using analytics as competitive advantage
– Encyclopedias Brockhaus 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 WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Encyclopedias Brockhaus to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Encyclopedias Brockhaus 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 Leadership & Managing People segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Encyclopedias Brockhaus 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, WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Encyclopedias Brockhaus has opened avenues for new revenue streams for the organization in the industry. This can help Encyclopedias Brockhaus to build a more holistic ecosystem as suggested in the WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA case study. Encyclopedias Brockhaus can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Encyclopedias Brockhaus 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Encyclopedias Brockhaus 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 Encyclopedias Brockhaus to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Encyclopedias Brockhaus 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.
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 Encyclopedias Brockhaus 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.
Buying journey improvements
– Encyclopedias Brockhaus can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA 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.
Manufacturing automation
– Encyclopedias Brockhaus can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
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 Encyclopedias Brockhaus in the consumer business. Now Encyclopedias Brockhaus can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Encyclopedias Brockhaus can develop new processes and procedures in Leadership & Managing People 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Encyclopedias Brockhaus 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. Encyclopedias Brockhaus 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.
Threats WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA are -
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. Encyclopedias Brockhaus 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Encyclopedias Brockhaus with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Encyclopedias Brockhaus 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
– Encyclopedias Brockhaus has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Encyclopedias Brockhaus needs to keep up with the evolution of technology in the Leadership & Managing People 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 WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA, Encyclopedias Brockhaus may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Environmental challenges
– Encyclopedias Brockhaus 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. Encyclopedias Brockhaus can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Stagnating economy with rate increase
– Encyclopedias Brockhaus 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.
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 Encyclopedias Brockhaus in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Encyclopedias Brockhaus needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Encyclopedias Brockhaus in the Leadership & Managing People industry. The Leadership & Managing People 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.
Shortening product life cycle
– it is one of the major threat that Encyclopedias Brockhaus is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Encyclopedias Brockhaus.
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 Encyclopedias Brockhaus business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA 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 WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA 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 WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA 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 WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA 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 WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA 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 Encyclopedias Brockhaus needs to make to build a sustainable competitive advantage.