Transforming Verizon: A Platform for Change SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Transforming Verizon: A Platform for Change
A new CEO steps into the shoes of his long-serving predecessor who had created the U.S. telecommunications giant via a series of acquisitions and, before departing, had initiated the company's strategic repositioning. The new CEO reflects on Verizon's recent successes, some of which he led, and considered how to ensure the team would continue to rise to new challenges. He knew change was both energizing and difficult and that every victory had to be followed by the next play. He paused in his New York City office to think about how his team handled recent challenges and whether the culture was in place to continue Verizon's transformation from a traditional telecommunications provider to a global services and technology firm.
Swot Analysis of "Transforming Verizon: A Platform for Change" written by Rosabeth Moss Kanter, Matthew Bird includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Verizon's Paused facing as an external strategic factors. Some of the topics covered in Transforming Verizon: A Platform for Change case study are - Strategic Management Strategies, Collaboration, Communication, Innovation, Leadership, Leading teams, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Transforming Verizon: A Platform for Change casestudy better are - – talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, geopolitical disruptions,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Transforming Verizon: A Platform for Change
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Transforming Verizon: A Platform for Change case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Verizon's Paused, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Verizon's Paused 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 Transforming Verizon: A Platform for Change can be done for the following purposes –
1. Strategic planning using facts provided in Transforming Verizon: A Platform for Change case study
2. Improving business portfolio management of Verizon's Paused
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 Verizon's Paused
Strengths Transforming Verizon: A Platform for Change | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Verizon's Paused in Transforming Verizon: A Platform for Change Harvard Business Review case study are -
Organizational Resilience of Verizon's Paused
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Verizon's Paused does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Verizon's Paused 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 Rosabeth Moss Kanter, Matthew Bird 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Transforming Verizon: A Platform for Change firm has clearly differentiated products in the market place. This has enabled Verizon's Paused to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Verizon's Paused to invest into research and development (R&D) and innovation.
High brand equity
– Verizon's Paused has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Verizon's Paused to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Verizon's Paused has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Transforming Verizon: A Platform for Change Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Successful track record of launching new products
– Verizon's Paused has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Verizon's Paused has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Low bargaining power of suppliers
– Suppliers of Verizon's Paused in the sector have low bargaining power. Transforming Verizon: A Platform for Change has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Verizon's Paused to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Verizon's Paused in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Verizon's Paused is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Verizon's Paused is one of the leading recruiters in the industry. Managers in the Transforming Verizon: A Platform for Change are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Verizon's Paused 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 Verizon's Paused is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Transforming Verizon: A Platform for Change Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Verizon's Paused 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.
Weaknesses Transforming Verizon: A Platform for Change | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Transforming Verizon: A Platform for Change are -
Lack of clear differentiation of Verizon's Paused products
– To increase the profitability and margins on the products, Verizon's Paused needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Verizon's Paused 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Transforming Verizon: A Platform for Change 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 Verizon's Paused has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Transforming Verizon: A Platform for Change, is just above the industry average. Verizon's Paused 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Transforming Verizon: A Platform for Change, in the dynamic environment Verizon's Paused has struggled to respond to the nimble upstart competition. Verizon's Paused has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Verizon's Paused 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, Verizon's Paused 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. Verizon's Paused 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.
Low market penetration in new markets
– Outside its home market of Verizon's Paused, firm in the HBR case study Transforming Verizon: A Platform for Change needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Transforming Verizon: A Platform for Change 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 Transforming Verizon: A Platform for Change can leverage the sales team experience to cultivate customer relationships as Verizon's Paused is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Verizon's Paused is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Verizon's Paused needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Verizon's Paused to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Transforming Verizon: A Platform for Change, it seems that the employees of Verizon's Paused 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.
Opportunities Transforming Verizon: A Platform for Change | 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 Transforming Verizon: A Platform for Change are -
Developing new processes and practices
– Verizon's Paused 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.
Leveraging digital technologies
– Verizon's Paused 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Verizon's Paused can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Verizon's Paused to increase its market reach. Verizon's Paused 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.
Using analytics as competitive advantage
– Verizon's Paused 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 Transforming Verizon: A Platform for Change - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Verizon's Paused to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Verizon's Paused 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Verizon's Paused can use these opportunities to build new business models that can help the communities that Verizon's Paused operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Learning at scale
– Online learning technologies has now opened space for Verizon's Paused 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 Verizon's Paused has opened avenues for new revenue streams for the organization in the industry. This can help Verizon's Paused to build a more holistic ecosystem as suggested in the Transforming Verizon: A Platform for Change case study. Verizon's Paused can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Verizon's Paused 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Verizon's Paused is facing challenges because of the dominance of functional experts in the organization. Transforming Verizon: A Platform for Change 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Verizon's Paused 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, Transforming Verizon: A Platform for Change, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Verizon's Paused can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Transforming Verizon: A Platform for Change 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.
Threats Transforming Verizon: A Platform for Change External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Transforming Verizon: A Platform for Change are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Verizon's Paused 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Transforming Verizon: A Platform for Change, Verizon's Paused 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 .
Increasing wage structure of Verizon's Paused
– 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 Verizon's Paused.
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 Verizon's Paused business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Verizon's Paused is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Verizon's Paused in the Leadership & Managing People sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Verizon's Paused has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Verizon's Paused 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.
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.
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. Verizon's Paused 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 Verizon's Paused.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Verizon's Paused 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 Transforming Verizon: A Platform for Change .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Consumer confidence and its impact on Verizon's Paused 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.
Weighted SWOT Analysis of Transforming Verizon: A Platform for Change 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 Transforming Verizon: A Platform for Change 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 Transforming Verizon: A Platform for Change 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 Transforming Verizon: A Platform for Change 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 Transforming Verizon: A Platform for Change 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 Verizon's Paused needs to make to build a sustainable competitive advantage.
