Capitalism's Next Frontier: Competing in Outer Space (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Capitalism's Next Frontier: Competing in Outer Space (A)
Several private startups, including Planetary Resources, SpaceX, and Deep Space Industries, had initiated plans to mine minerals in space. The ventures looked promising: an asteroid one kilometre in diameter contained, potentially, $20 trillion worth of industrial and precious metals. Governments had become involved in space exploration as well, with interests that ranged from projecting military power in space to claiming resources. The current legal framework surrounding space exploration was vague, but the United Nations Treaties and Principles on Outer Space recognized extraterrestrial resources as the "common heritage of humankind." What should a privately funded venture company consider when developing a strategy for space exploration and mining? What would be the concerns of a senior government official or a representative from a global organization such as the United Nations? Are the concerns different for different countries?
Swot Analysis of "Capitalism's Next Frontier: Competing in Outer Space (A)" written by Jean-Philippe Vergne, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Space Outer facing as an external strategic factors. Some of the topics covered in Capitalism's Next Frontier: Competing in Outer Space (A) case study are - Strategic Management Strategies, Risk management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Capitalism's Next Frontier: Competing in Outer Space (A) casestudy better are - – wage bills are increasing, geopolitical disruptions, central banks are concerned over increasing inflation, increasing commodity prices, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, supply chains are disrupted by pandemic ,
there is backlash against globalization, increasing energy prices, etc
Introduction to SWOT Analysis of Capitalism's Next Frontier: Competing in Outer Space (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Capitalism's Next Frontier: Competing in Outer Space (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Space Outer, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Space Outer 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 Capitalism's Next Frontier: Competing in Outer Space (A) can be done for the following purposes –
1. Strategic planning using facts provided in Capitalism's Next Frontier: Competing in Outer Space (A) case study
2. Improving business portfolio management of Space Outer
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 Space Outer
Strengths Capitalism's Next Frontier: Competing in Outer Space (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Space Outer in Capitalism's Next Frontier: Competing in Outer Space (A) Harvard Business Review case study are -
High switching costs
– The high switching costs that Space Outer 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.
Strong track record of project management
– Space Outer is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Space Outer 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.
Innovation driven organization
– Space Outer is one of the most innovative firm in sector. Manager in Capitalism's Next Frontier: Competing in Outer Space (A) 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
– Space Outer is present in almost all the verticals within the industry. This has provided firm in Capitalism's Next Frontier: Competing in Outer Space (A) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Learning organization
- Space Outer 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 Space Outer is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Capitalism's Next Frontier: Competing in Outer Space (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Space Outer in the sector have low bargaining power. Capitalism's Next Frontier: Competing in Outer Space (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Space Outer to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Leadership & Managing People industry
– Capitalism's Next Frontier: Competing in Outer Space (A) firm has clearly differentiated products in the market place. This has enabled Space Outer to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Space Outer to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Space Outer has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Space Outer 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.
Superior customer experience
– The customer experience strategy of Space Outer in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Space Outer has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Capitalism's Next Frontier: Competing in Outer Space (A) 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.
Analytics focus
– Space Outer 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 Jean-Philippe Vergne, Ken Mark 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.
Weaknesses Capitalism's Next Frontier: Competing in Outer Space (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Capitalism's Next Frontier: Competing in Outer Space (A) are -
Skills based hiring
– The stress on hiring functional specialists at Space Outer 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.
Capital Spending Reduction
– Even during the low interest decade, Space Outer 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.
Aligning sales with marketing
– It come across in the case study Capitalism's Next Frontier: Competing in Outer Space (A) 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 Capitalism's Next Frontier: Competing in Outer Space (A) can leverage the sales team experience to cultivate customer relationships as Space Outer is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Space Outer is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Capitalism's Next Frontier: Competing in Outer Space (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Capitalism's Next Frontier: Competing in Outer Space (A) HBR case study mentions - Space Outer takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High dependence on 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 Space Outer supply chain. Even after few cautionary changes mentioned in the HBR case study - Capitalism's Next Frontier: Competing in Outer Space (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Space Outer vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Space Outer is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Space Outer needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Space Outer to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Capitalism's Next Frontier: Competing in Outer Space (A), is just above the industry average. Space Outer 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Space Outer 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Capitalism's Next Frontier: Competing in Outer Space (A), it seems that the employees of Space Outer 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Capitalism's Next Frontier: Competing in Outer Space (A) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Space Outer has relatively successful track record of launching new products.
Opportunities Capitalism's Next Frontier: Competing in Outer Space (A) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Capitalism's Next Frontier: Competing in Outer Space (A) are -
Buying journey improvements
– Space Outer can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Capitalism's Next Frontier: Competing in Outer Space (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Space Outer 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.
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 Space Outer in the consumer business. Now Space Outer can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Space Outer to increase its market reach. Space Outer 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.
Learning at scale
– Online learning technologies has now opened space for Space Outer 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.
Developing new processes and practices
– Space Outer 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.
Loyalty marketing
– Space Outer 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
– Space Outer 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.
Using analytics as competitive advantage
– Space Outer 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 Capitalism's Next Frontier: Competing in Outer Space (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Space Outer to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Space Outer has opened avenues for new revenue streams for the organization in the industry. This can help Space Outer to build a more holistic ecosystem as suggested in the Capitalism's Next Frontier: Competing in Outer Space (A) case study. Space Outer can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Space Outer 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 Space Outer to hire the very best people irrespective of their geographical location.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Space Outer to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Space Outer 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, Capitalism's Next Frontier: Competing in Outer Space (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Capitalism's Next Frontier: Competing in Outer Space (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Capitalism's Next Frontier: Competing in Outer Space (A) are -
Regulatory challenges
– Space Outer 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.
Shortening product life cycle
– it is one of the major threat that Space Outer is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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.
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. Space Outer needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Consumer confidence and its impact on Space Outer 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.
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 Space Outer.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Space Outer 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 Capitalism's Next Frontier: Competing in Outer Space (A), Space Outer may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Space Outer with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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 Space Outer in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Space Outer 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.
Stagnating economy with rate increase
– Space Outer 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.
Weighted SWOT Analysis of Capitalism's Next Frontier: Competing in Outer Space (A) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Capitalism's Next Frontier: Competing in Outer Space (A) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Capitalism's Next Frontier: Competing in Outer Space (A) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Capitalism's Next Frontier: Competing in Outer Space (A) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Capitalism's Next Frontier: Competing in Outer Space (A) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Space Outer needs to make to build a sustainable competitive advantage.