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 - – supply chains are disrupted by pandemic , there is increasing trade war between United States & China, wage bills are increasing, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, 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 -
High brand equity
– Staatsoper Opera has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Staatsoper Opera to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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.
Effective Research and Development (R&D)
– Staatsoper Opera 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 Weiner Staatsoper (A): Streaming from the Vienna Opera House - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Staatsoper Opera in the sector have low bargaining power. Weiner Staatsoper (A): Streaming from the Vienna Opera House has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Staatsoper Opera to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Leadership & Managing People field
– Staatsoper Opera 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 Staatsoper Opera 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 Staatsoper Opera digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Staatsoper Opera 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.
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.
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.
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 -
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.
Capital Spending Reduction
– Even during the low interest decade, Staatsoper Opera has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Increasing silos among functional specialists
– The organizational structure of Staatsoper Opera is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Staatsoper Opera needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Staatsoper Opera to focus more on services rather than just following the product oriented approach.
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.
Products dominated business model
– Even though Staatsoper Opera has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Weiner Staatsoper (A): Streaming from the Vienna Opera House should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Staatsoper Opera 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.
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.
Slow to strategic competitive environment developments
– As Weiner Staatsoper (A): Streaming from the Vienna Opera House HBR case study mentions - Staatsoper Opera 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Weiner Staatsoper (A): Streaming from the Vienna Opera House, it seems that the employees of Staatsoper Opera 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.
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.
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 -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Staatsoper Opera can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
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.
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.
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. Staatsoper Opera can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Staatsoper Opera to increase its market reach. Staatsoper Opera 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Staatsoper Opera can use these opportunities to build new business models that can help the communities that Staatsoper Opera operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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 -
Regulatory challenges
– Staatsoper Opera 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.
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.
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.
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.
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.
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 .
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 Staatsoper Opera business can come under increasing regulations regarding data privacy, data security, etc.
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.
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 Staatsoper Opera in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Staatsoper Opera 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 Weiner Staatsoper (A): Streaming from the Vienna Opera House .
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.
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.
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.