Case Study Description of Jade Magnet: Creating a Crowdsourcing Enterprise
Jade Magnet was India's largest creative crowdsourcing platform. It had grown from an entrepreneurship project idea of two MBA students to one that had completed more than 700 projects for 200 brands through 3,000 providers that offered a range of creative services. As 2011 was coming to a close, the founders were preparing for a meeting with their mentor and angel investor to discuss a number of issues including whether to grow the business by expanding domestically in India and/or expanding internationally into the Middle East. A decision to enter the Middle East would raise further questions concerning market knowledge, competitors, external funding sources, joint ventures and branding. T.N. Swaminathan and Arun Thamizhvanan are affiliated with Great Lakes Institute of Management.
Swot Analysis of "Jade Magnet: Creating a Crowdsourcing Enterprise" written by T N Swaminathan, Arun Thamizhvanan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jade Magnet facing as an external strategic factors. Some of the topics covered in Jade Magnet: Creating a Crowdsourcing Enterprise case study are - Strategic Management Strategies, International business, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Jade Magnet: Creating a Crowdsourcing Enterprise casestudy better are - – cloud computing is disrupting traditional business models, there is backlash against globalization, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, central banks are concerned over increasing inflation,
increasing transportation and logistics costs, geopolitical disruptions, etc
Introduction to SWOT Analysis of Jade Magnet: Creating a Crowdsourcing Enterprise
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jade Magnet: Creating a Crowdsourcing Enterprise case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jade Magnet, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jade Magnet 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 Jade Magnet: Creating a Crowdsourcing Enterprise can be done for the following purposes –
1. Strategic planning using facts provided in Jade Magnet: Creating a Crowdsourcing Enterprise case study
2. Improving business portfolio management of Jade Magnet
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 Jade Magnet
Strengths Jade Magnet: Creating a Crowdsourcing Enterprise | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jade Magnet in Jade Magnet: Creating a Crowdsourcing Enterprise Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Jade Magnet 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 Jade Magnet in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Jade Magnet in the sector have low bargaining power. Jade Magnet: Creating a Crowdsourcing Enterprise has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jade Magnet to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Jade Magnet 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Jade Magnet: Creating a Crowdsourcing Enterprise firm has clearly differentiated products in the market place. This has enabled Jade Magnet to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Jade Magnet to invest into research and development (R&D) and innovation.
Analytics focus
– Jade Magnet 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 T N Swaminathan, Arun Thamizhvanan 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.
Strong track record of project management
– Jade Magnet is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Jade Magnet has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jade Magnet to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Jade Magnet has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jade Magnet 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.
Training and development
– Jade Magnet has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Jade Magnet: Creating a Crowdsourcing Enterprise 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.
Cross disciplinary teams
– Horizontal connected teams at the Jade Magnet 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.
Learning organization
- Jade Magnet 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 Jade Magnet is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Jade Magnet: Creating a Crowdsourcing Enterprise Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Jade Magnet: Creating a Crowdsourcing Enterprise 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.
Weaknesses Jade Magnet: Creating a Crowdsourcing Enterprise | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jade Magnet: Creating a Crowdsourcing Enterprise are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Jade Magnet: Creating a Crowdsourcing Enterprise 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 Jade Magnet has relatively successful track record of launching new products.
High cash cycle compare to competitors
Jade Magnet 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.
No frontier risks strategy
– After analyzing the HBR case study Jade Magnet: Creating a Crowdsourcing Enterprise, 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.
Need for greater diversity
– Jade Magnet 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.
Skills based hiring
– The stress on hiring functional specialists at Jade Magnet 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.
Low market penetration in new markets
– Outside its home market of Jade Magnet, firm in the HBR case study Jade Magnet: Creating a Crowdsourcing Enterprise needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Jade Magnet products
– To increase the profitability and margins on the products, Jade Magnet needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Jade Magnet 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.
Interest costs
– Compare to the competition, Jade Magnet 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.
Aligning sales with marketing
– It come across in the case study Jade Magnet: Creating a Crowdsourcing Enterprise 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 Jade Magnet: Creating a Crowdsourcing Enterprise can leverage the sales team experience to cultivate customer relationships as Jade Magnet is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Jade Magnet: Creating a Crowdsourcing Enterprise, in the dynamic environment Jade Magnet has struggled to respond to the nimble upstart competition. Jade Magnet has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Jade Magnet: Creating a Crowdsourcing Enterprise | 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 Jade Magnet: Creating a Crowdsourcing Enterprise are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jade Magnet 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, Jade Magnet: Creating a Crowdsourcing Enterprise, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Jade Magnet 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.
Leveraging digital technologies
– Jade Magnet 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.
Creating value in data economy
– The success of analytics program of Jade Magnet has opened avenues for new revenue streams for the organization in the industry. This can help Jade Magnet to build a more holistic ecosystem as suggested in the Jade Magnet: Creating a Crowdsourcing Enterprise case study. Jade Magnet can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jade Magnet can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jade Magnet 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jade Magnet 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 Jade Magnet to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Jade Magnet 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.
Developing new processes and practices
– Jade Magnet 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.
Better consumer reach
– The expansion of the 5G network will help Jade Magnet to increase its market reach. Jade Magnet 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, Jade Magnet can use these opportunities to build new business models that can help the communities that Jade Magnet 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 Jade Magnet 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.
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. Jade Magnet 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. Jade Magnet 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 Jade Magnet: Creating a Crowdsourcing Enterprise External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Jade Magnet: Creating a Crowdsourcing Enterprise are -
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.
Increasing wage structure of Jade Magnet
– 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 Jade Magnet.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Jade Magnet: Creating a Crowdsourcing Enterprise, Jade Magnet 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 .
Technology acceleration in Forth Industrial Revolution
– Jade Magnet has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Jade Magnet 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.
Regulatory challenges
– Jade Magnet 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.
High dependence on third party suppliers
– Jade Magnet high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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. Jade Magnet 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 Jade Magnet in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jade Magnet 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.
Environmental challenges
– Jade Magnet 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. Jade Magnet can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on Jade Magnet 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.
Shortening product life cycle
– it is one of the major threat that Jade Magnet is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Jade Magnet: Creating a Crowdsourcing Enterprise 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 Jade Magnet: Creating a Crowdsourcing Enterprise 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 Jade Magnet: Creating a Crowdsourcing Enterprise 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 Jade Magnet: Creating a Crowdsourcing Enterprise 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 Jade Magnet: Creating a Crowdsourcing Enterprise 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 Jade Magnet needs to make to build a sustainable competitive advantage.
