Weiner Staatsoper (A): Streaming from the Vienna Opera House SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Weiner Staatsoper (A): Streaming from the Vienna Opera House
This case series focuses on the challenges faced by prestigious arts organizations when confronted with new cultural arts consumption modes, especially those created by the explosion of digital consumption opportunities. In 2012/13, the Wiener Staatsoper (the Vienna State Opera) enjoyed a 99 per cent occupancy rate but, apart from the national broadcasting network, lacked a presence in the digital arena. In contrast, performances by New York's Metropolitan Opera could be viewed in movie theatres around the world. The Staatsoper also faced financial challenges shared by opera houses around the world. Should the Staatsoper enter the digital arena? If so, what adaptations would be required in its business model? Dagmar Abfalter is affiliated with UniversitA?t fA?r Musik und darstellende Kunst Wien. Sebasien Boutonnet is affiliated with HEC Montreal. Serge Poisson-de Haro is affiliated with HEC Montreal.
Swot Analysis of "Weiner Staatsoper (A): Streaming from the Vienna Opera House" written by Dagmar Abfalter, Sebastien Boutonnet, Serge Poisson-de-Haro includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Staatsoper Opera facing as an external strategic factors. Some of the topics covered in Weiner Staatsoper (A): Streaming from the Vienna Opera House case study are - Strategic Management Strategies, Decision making, Technology and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Weiner Staatsoper (A): Streaming from the Vienna Opera House casestudy better are - – increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing energy prices, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies,
there is backlash against globalization, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Weiner Staatsoper (A): Streaming from the Vienna Opera House
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Weiner Staatsoper (A): Streaming from the Vienna Opera House case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Staatsoper Opera, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Staatsoper Opera 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 Weiner Staatsoper (A): Streaming from the Vienna Opera House can be done for the following purposes –
1. Strategic planning using facts provided in Weiner Staatsoper (A): Streaming from the Vienna Opera House case study
2. Improving business portfolio management of Staatsoper Opera
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 Staatsoper Opera
Strengths Weiner Staatsoper (A): Streaming from the Vienna Opera House | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Staatsoper Opera in Weiner Staatsoper (A): Streaming from the Vienna Opera House Harvard Business Review case study are -
Successful track record of launching new products
– Staatsoper Opera has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Staatsoper Opera 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.
High switching costs
– The high switching costs that Staatsoper Opera 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.
Superior customer experience
– The customer experience strategy of Staatsoper Opera in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Staatsoper Opera 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 Dagmar Abfalter, Sebastien Boutonnet, Serge Poisson-de-Haro 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.
Diverse revenue streams
– Staatsoper Opera is present in almost all the verticals within the industry. This has provided firm in Weiner Staatsoper (A): Streaming from the Vienna Opera House 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.
Operational resilience
– The operational resilience strategy in the Weiner Staatsoper (A): Streaming from the Vienna Opera House 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.
Organizational Resilience of Staatsoper Opera
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Staatsoper Opera does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Staatsoper Opera 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 Weiner Staatsoper (A): Streaming from the Vienna Opera House HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Staatsoper Opera 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 Staatsoper Opera is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Weiner Staatsoper (A): Streaming from the Vienna Opera House Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Leadership & Managing People industry
– Weiner Staatsoper (A): Streaming from the Vienna Opera House firm has clearly differentiated products in the market place. This has enabled Staatsoper Opera to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Staatsoper Opera to invest into research and development (R&D) and innovation.
Training and development
– Staatsoper Opera has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Weiner Staatsoper (A): Streaming from the Vienna Opera House 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.
Innovation driven organization
– Staatsoper Opera is one of the most innovative firm in sector. Manager in Weiner Staatsoper (A): Streaming from the Vienna Opera House Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Weiner Staatsoper (A): Streaming from the Vienna Opera House | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Weiner Staatsoper (A): Streaming from the Vienna Opera House are -
Aligning sales with marketing
– It come across in the case study Weiner Staatsoper (A): Streaming from the Vienna Opera House 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 Weiner Staatsoper (A): Streaming from the Vienna Opera House can leverage the sales team experience to cultivate customer relationships as Staatsoper Opera is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Weiner Staatsoper (A): Streaming from the Vienna Opera House, 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 dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Staatsoper Opera supply chain. Even after few cautionary changes mentioned in the HBR case study - Weiner Staatsoper (A): Streaming from the Vienna Opera House, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Staatsoper Opera vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Weiner Staatsoper (A): Streaming from the Vienna Opera House, in the dynamic environment Staatsoper Opera has struggled to respond to the nimble upstart competition. Staatsoper Opera has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Staatsoper Opera 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. Staatsoper Opera 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Weiner Staatsoper (A): Streaming from the Vienna Opera House, is just above the industry average. Staatsoper Opera 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.
Skills based hiring
– The stress on hiring functional specialists at Staatsoper Opera 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.
Lack of clear differentiation of Staatsoper Opera products
– To increase the profitability and margins on the products, Staatsoper Opera 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, Staatsoper Opera 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.
Low market penetration in new markets
– Outside its home market of Staatsoper Opera, firm in the HBR case study Weiner Staatsoper (A): Streaming from the Vienna Opera House needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Weiner Staatsoper (A): Streaming from the Vienna Opera House 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 Staatsoper Opera 's lucrative customers.
Opportunities Weiner Staatsoper (A): Streaming from the Vienna Opera House | 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 Weiner Staatsoper (A): Streaming from the Vienna Opera House are -
Manufacturing automation
– Staatsoper Opera 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
– Staatsoper Opera 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.
Building a culture of innovation
– managers at Staatsoper Opera 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, Staatsoper Opera 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, Weiner Staatsoper (A): Streaming from the Vienna Opera House, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Staatsoper Opera 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Staatsoper Opera 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.
Loyalty marketing
– Staatsoper Opera 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Staatsoper Opera can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Staatsoper Opera 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 Weiner Staatsoper (A): Streaming from the Vienna Opera House - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Staatsoper Opera to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Staatsoper Opera in the consumer business. Now Staatsoper Opera can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Staatsoper Opera 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 Staatsoper Opera to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Staatsoper Opera has opened avenues for new revenue streams for the organization in the industry. This can help Staatsoper Opera to build a more holistic ecosystem as suggested in the Weiner Staatsoper (A): Streaming from the Vienna Opera House case study. Staatsoper Opera 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 Staatsoper Opera 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.
Threats Weiner Staatsoper (A): Streaming from the Vienna Opera House External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Weiner Staatsoper (A): Streaming from the Vienna Opera House 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. Staatsoper Opera 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.
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. Staatsoper Opera needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing wage structure of Staatsoper Opera
– 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 Staatsoper Opera.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Weiner Staatsoper (A): Streaming from the Vienna Opera House, Staatsoper Opera 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 .
Consumer confidence and its impact on Staatsoper Opera 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.
High dependence on third party suppliers
– Staatsoper Opera 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Staatsoper Opera with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Staatsoper Opera 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.
Stagnating economy with rate increase
– Staatsoper Opera 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.
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.
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. Staatsoper Opera can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Staatsoper Opera is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Staatsoper Opera has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Staatsoper Opera 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.
Weighted SWOT Analysis of Weiner Staatsoper (A): Streaming from the Vienna Opera House 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 Weiner Staatsoper (A): Streaming from the Vienna Opera House 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 Weiner Staatsoper (A): Streaming from the Vienna Opera House 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 Weiner Staatsoper (A): Streaming from the Vienna Opera House 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 Weiner Staatsoper (A): Streaming from the Vienna Opera House 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 Staatsoper Opera needs to make to build a sustainable competitive advantage.
