The Eyewitness Surveillance case tells the story of Rush Arnold and RT McCloy, friends who met while studying at Wharton, who raise a search fund under the name Channelstone Partners. In the fall of 2010, after having spent two-thirds of their search fund capital and reviewed over 200 companies, they came across Eyewitness Surveillance, a company specializing in the use of video technology to protect the assets of car dealerships. Eyewitness' cofounder, Vince Redland, was interested in selling the company to pursue other interests and Arnold and McCloy found the industry, company, and deal all compelling. Over the course of the next two months, they engaged in a due diligence process which further validated their interest in the company, but also raised several red flags. Among the issues highlighted in due diligence included widespread employee disgruntlement, particularly with Vince (who was also the top sales person), a reluctance to share detailed financial information, and an 11th hour disagreement about a contract clause stipulating that the purchase price would go down if monthly revenues declined after the close. Despite having conducted a thorough and in-depth due diligence process, Arnold and McCloy were at the end of their search capital and facing a deal that was on the brink. They were now faced with the question of whether or not they wanted to charge ahead, despite the red flags, or walk away, knowing that this could potentially be the end of the road.
Swot Analysis of "Eyewitness Surveillance" written by David Dodson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Eyewitness Mccloy facing as an external strategic factors. Some of the topics covered in Eyewitness Surveillance case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Eyewitness Surveillance casestudy better are - – challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs,
increasing transportation and logistics costs, there is backlash against globalization, etc
Introduction to SWOT Analysis of Eyewitness Surveillance
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Eyewitness Surveillance case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Eyewitness Mccloy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Eyewitness Mccloy 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 Eyewitness Surveillance can be done for the following purposes –
1. Strategic planning using facts provided in Eyewitness Surveillance case study
2. Improving business portfolio management of Eyewitness Mccloy
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 Eyewitness Mccloy
Strengths Eyewitness Surveillance | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Eyewitness Mccloy in Eyewitness Surveillance Harvard Business Review case study are -
Effective Research and Development (R&D)
– Eyewitness Mccloy 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 Eyewitness Surveillance - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Eyewitness Mccloy in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Eyewitness Mccloy has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Eyewitness Surveillance Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Successful track record of launching new products
– Eyewitness Mccloy has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Eyewitness Mccloy 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.
Highly skilled collaborators
– Eyewitness Mccloy 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 Eyewitness Surveillance HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Eyewitness Mccloy 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 David Dodson 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.
Ability to lead change in Leadership & Managing People field
– Eyewitness Mccloy 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 Eyewitness Mccloy in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Eyewitness Mccloy has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Eyewitness Mccloy to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Eyewitness Mccloy is one of the leading recruiters in the industry. Managers in the Eyewitness Surveillance are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Eyewitness Surveillance 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.
Strong track record of project management
– Eyewitness Mccloy is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Eyewitness Mccloy 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 Eyewitness Mccloy is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Eyewitness Surveillance Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Eyewitness Surveillance | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Eyewitness Surveillance are -
High bargaining power of channel partners
– Because of the regulatory requirements, David Dodson suggests that, Eyewitness Mccloy is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Low market penetration in new markets
– Outside its home market of Eyewitness Mccloy, firm in the HBR case study Eyewitness Surveillance needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Eyewitness Mccloy 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Eyewitness Mccloy is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Eyewitness Surveillance can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Eyewitness Surveillance 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 Eyewitness Surveillance can leverage the sales team experience to cultivate customer relationships as Eyewitness Mccloy is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Eyewitness Surveillance, 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.
Lack of clear differentiation of Eyewitness Mccloy products
– To increase the profitability and margins on the products, Eyewitness Mccloy needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Eyewitness Surveillance HBR case study mentions - Eyewitness Mccloy 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.
Increasing silos among functional specialists
– The organizational structure of Eyewitness Mccloy is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Eyewitness Mccloy needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Eyewitness Mccloy to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Eyewitness Mccloy 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.
Capital Spending Reduction
– Even during the low interest decade, Eyewitness Mccloy 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.
Opportunities Eyewitness Surveillance | 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 Eyewitness Surveillance are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Eyewitness Mccloy 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, Eyewitness Surveillance, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Eyewitness Mccloy has opened avenues for new revenue streams for the organization in the industry. This can help Eyewitness Mccloy to build a more holistic ecosystem as suggested in the Eyewitness Surveillance case study. Eyewitness Mccloy can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Eyewitness Mccloy 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.
Building a culture of innovation
– managers at Eyewitness Mccloy 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Eyewitness Mccloy can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Eyewitness Mccloy in the consumer business. Now Eyewitness Mccloy can target international markets with far fewer capital restrictions requirements than the existing system.
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. Eyewitness Mccloy can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Eyewitness Mccloy 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.
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 Eyewitness Mccloy 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.
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. Eyewitness Mccloy can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Eyewitness Mccloy is facing challenges because of the dominance of functional experts in the organization. Eyewitness Surveillance case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help Eyewitness Mccloy to increase its market reach. Eyewitness Mccloy 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.
Manufacturing automation
– Eyewitness Mccloy 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.
Threats Eyewitness Surveillance External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Eyewitness Surveillance are -
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 Eyewitness Mccloy business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Eyewitness Mccloy 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Eyewitness Mccloy with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Eyewitness Mccloy
– 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 Eyewitness Mccloy.
Regulatory challenges
– Eyewitness Mccloy 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.
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. Eyewitness Mccloy 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.
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. Eyewitness Mccloy needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Eyewitness Mccloy 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
– Eyewitness Mccloy 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Eyewitness Surveillance, Eyewitness Mccloy 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 .
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 Eyewitness Mccloy in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Eyewitness Surveillance 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 Eyewitness Surveillance 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 Eyewitness Surveillance 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 Eyewitness Surveillance 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 Eyewitness Surveillance 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 Eyewitness Mccloy needs to make to build a sustainable competitive advantage.