InterSoft of Argentina (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of InterSoft of Argentina (A)
Focuses on InterSoft of Argentina, a growing software company in Argentina. In 1993, InterSoft acquires a Russian software company and Emilo Lopez, the vice president and director of InterSoft's Systems Software Lab, must manage a creative, cross-cultural, "virtual" team. This case illustrates InterSoft's origins and highlights the relationship between the founding partners, Lopez and Felix Racca.
Swot Analysis of "InterSoft of Argentina (A)" written by Linda A. Hill, Stacy Palestrant includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Intersoft Intersoft's facing as an external strategic factors. Some of the topics covered in InterSoft of Argentina (A) case study are - Strategic Management Strategies, Cross-cultural management, Growth strategy, Influence, IT, Joint ventures, Mergers & acquisitions, Product development and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the InterSoft of Argentina (A) casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, there is increasing trade war between United States & China, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation,
cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of InterSoft of Argentina (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in InterSoft of Argentina (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Intersoft Intersoft's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Intersoft Intersoft's 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 InterSoft of Argentina (A) can be done for the following purposes –
1. Strategic planning using facts provided in InterSoft of Argentina (A) case study
2. Improving business portfolio management of Intersoft Intersoft's
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 Intersoft Intersoft's
Strengths InterSoft of Argentina (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Intersoft Intersoft's in InterSoft of Argentina (A) Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Intersoft Intersoft's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Intersoft Intersoft's is one of the most innovative firm in sector. Manager in InterSoft of Argentina (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Intersoft Intersoft's 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 InterSoft of Argentina (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.
Operational resilience
– The operational resilience strategy in the InterSoft of Argentina (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.
Ability to lead change in Leadership & Managing People field
– Intersoft Intersoft's 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 Intersoft Intersoft's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Intersoft Intersoft's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Intersoft Intersoft's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Highly skilled collaborators
– Intersoft Intersoft's 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 InterSoft of Argentina (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Intersoft Intersoft's in the sector have low bargaining power. InterSoft of Argentina (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Intersoft Intersoft's to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Intersoft Intersoft's is one of the leading recruiters in the industry. Managers in the InterSoft of Argentina (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.
Sustainable margins compare to other players in Leadership & Managing People industry
– InterSoft of Argentina (A) firm has clearly differentiated products in the market place. This has enabled Intersoft Intersoft's to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Intersoft Intersoft's to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Intersoft Intersoft's is present in almost all the verticals within the industry. This has provided firm in InterSoft of Argentina (A) 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.
Learning organization
- Intersoft Intersoft's 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 Intersoft Intersoft's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in InterSoft of Argentina (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses InterSoft of Argentina (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of InterSoft of Argentina (A) are -
Workers concerns about automation
– As automation is fast increasing in the segment, Intersoft Intersoft's 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 InterSoft of Argentina (A), is just above the industry average. Intersoft Intersoft's 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.
Slow to strategic competitive environment developments
– As InterSoft of Argentina (A) HBR case study mentions - Intersoft Intersoft's 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the InterSoft of Argentina (A) 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 Intersoft Intersoft's has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Intersoft Intersoft's 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.
Skills based hiring
– The stress on hiring functional specialists at Intersoft Intersoft's 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.
No frontier risks strategy
– After analyzing the HBR case study InterSoft of Argentina (A), 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.
High cash cycle compare to competitors
Intersoft Intersoft's 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study InterSoft of Argentina (A), it seems that the employees of Intersoft Intersoft's 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.
Low market penetration in new markets
– Outside its home market of Intersoft Intersoft's, firm in the HBR case study InterSoft of Argentina (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Intersoft Intersoft's products
– To increase the profitability and margins on the products, Intersoft Intersoft's needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities InterSoft of Argentina (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 InterSoft of Argentina (A) are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Intersoft Intersoft's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Intersoft Intersoft's is facing challenges because of the dominance of functional experts in the organization. InterSoft of Argentina (A) 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.
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 Intersoft Intersoft's 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.
Building a culture of innovation
– managers at Intersoft Intersoft's 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.
Buying journey improvements
– Intersoft Intersoft's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. InterSoft of Argentina (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.
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. Intersoft Intersoft's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Intersoft Intersoft's 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.
Leveraging digital technologies
– Intersoft Intersoft's 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.
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 Intersoft Intersoft's in the consumer business. Now Intersoft Intersoft's can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Intersoft Intersoft's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Intersoft Intersoft's has opened avenues for new revenue streams for the organization in the industry. This can help Intersoft Intersoft's to build a more holistic ecosystem as suggested in the InterSoft of Argentina (A) case study. Intersoft Intersoft's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Intersoft Intersoft's 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.
Better consumer reach
– The expansion of the 5G network will help Intersoft Intersoft's to increase its market reach. Intersoft Intersoft's 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.
Threats InterSoft of Argentina (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study InterSoft of Argentina (A) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Intersoft Intersoft's 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.
Regulatory challenges
– Intersoft Intersoft's 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 Leadership & Managing People industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study InterSoft of Argentina (A), Intersoft Intersoft's 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Intersoft Intersoft's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Intersoft Intersoft's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Intersoft Intersoft's in the Leadership & Managing People sector and impact the bottomline of the organization.
Consumer confidence and its impact on Intersoft Intersoft's 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.
Stagnating economy with rate increase
– Intersoft Intersoft's 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.
Increasing wage structure of Intersoft Intersoft's
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Intersoft Intersoft's.
Technology acceleration in Forth Industrial Revolution
– Intersoft Intersoft's has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Intersoft Intersoft's 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.
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. Intersoft Intersoft's 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.
Environmental challenges
– Intersoft Intersoft's 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. Intersoft Intersoft's can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People 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 Intersoft Intersoft's business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of InterSoft of Argentina (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 InterSoft of Argentina (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 InterSoft of Argentina (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 InterSoft of Argentina (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 InterSoft of Argentina (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 Intersoft Intersoft's needs to make to build a sustainable competitive advantage.