Bringing Product and Consumer Ecosystems to the Strategic Forefront SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Bringing Product and Consumer Ecosystems to the Strategic Forefront
The widespread adoption of technology and electronic media has dramatically altered the set of products consumers compare before making a purchase decision. Online platforms have succeeded at drawing linkages among products by highlighting those that are preferred, evaluated, or purchased together. However, despite the increase in both product and customer inter-connectedness across markets, managers continue to make decisions based largely on the dynamics of competition within narrow product categories. In this article, we raise the call for a migration from a category-focused mindset to an ecosystem-focused strategic mindset that acknowledges and accounts for the network of related or unrelated entities that a specific product resides within. We illustrate the importance of this shift using examples of preference, choice, and customer networks from popular online platforms. We then discuss the impact of the shift in strategic mindset toward ecosystems on competitive structure analysis, market research, brand footprint analysis, intraband ecosystems, promotion planning, new product development, customer valuation, strategic alliances, and market segmentation.
Swot Analysis of "Bringing Product and Consumer Ecosystems to the Strategic Forefront" written by Mayukh Dass, Shivina Kumar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ecosystems Mindset facing as an external strategic factors. Some of the topics covered in Bringing Product and Consumer Ecosystems to the Strategic Forefront case study are - Strategic Management Strategies, Joint ventures, Market research, Networking, Product development, Social platforms and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Bringing Product and Consumer Ecosystems to the Strategic Forefront casestudy better are - – technology disruption, geopolitical disruptions, wage bills are increasing, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy,
there is backlash against globalization, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Bringing Product and Consumer Ecosystems to the Strategic Forefront
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bringing Product and Consumer Ecosystems to the Strategic Forefront case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ecosystems Mindset, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ecosystems Mindset 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 Bringing Product and Consumer Ecosystems to the Strategic Forefront can be done for the following purposes –
1. Strategic planning using facts provided in Bringing Product and Consumer Ecosystems to the Strategic Forefront case study
2. Improving business portfolio management of Ecosystems Mindset
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 Ecosystems Mindset
Strengths Bringing Product and Consumer Ecosystems to the Strategic Forefront | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ecosystems Mindset in Bringing Product and Consumer Ecosystems to the Strategic Forefront Harvard Business Review case study are -
Analytics focus
– Ecosystems Mindset 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 Mayukh Dass, Shivina Kumar 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.
Successful track record of launching new products
– Ecosystems Mindset has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ecosystems Mindset 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.
Cross disciplinary teams
– Horizontal connected teams at the Ecosystems Mindset 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.
Organizational Resilience of Ecosystems Mindset
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ecosystems Mindset does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Ecosystems Mindset is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Ecosystems Mindset 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 Bringing Product and Consumer Ecosystems to the Strategic Forefront HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Ecosystems Mindset 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 Bringing Product and Consumer Ecosystems to the Strategic Forefront - 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 Ecosystems Mindset 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 Ecosystems Mindset in the sector have low bargaining power. Bringing Product and Consumer Ecosystems to the Strategic Forefront has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ecosystems Mindset to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Ecosystems Mindset 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 Ecosystems Mindset is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Bringing Product and Consumer Ecosystems to the Strategic Forefront Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Ecosystems Mindset is one of the most innovative firm in sector. Manager in Bringing Product and Consumer Ecosystems to the Strategic Forefront Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Ecosystems Mindset is one of the leading recruiters in the industry. Managers in the Bringing Product and Consumer Ecosystems to the Strategic Forefront are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Bringing Product and Consumer Ecosystems to the Strategic Forefront | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bringing Product and Consumer Ecosystems to the Strategic Forefront are -
Interest costs
– Compare to the competition, Ecosystems Mindset 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.
No frontier risks strategy
– After analyzing the HBR case study Bringing Product and Consumer Ecosystems to the Strategic Forefront, 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.
Low market penetration in new markets
– Outside its home market of Ecosystems Mindset, firm in the HBR case study Bringing Product and Consumer Ecosystems to the Strategic Forefront 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 Bringing Product and Consumer Ecosystems to the Strategic Forefront 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 Ecosystems Mindset 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Ecosystems Mindset is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Ecosystems Mindset needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ecosystems Mindset to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Ecosystems Mindset products
– To increase the profitability and margins on the products, Ecosystems Mindset 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, Ecosystems Mindset 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.
Aligning sales with marketing
– It come across in the case study Bringing Product and Consumer Ecosystems to the Strategic Forefront 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 Bringing Product and Consumer Ecosystems to the Strategic Forefront can leverage the sales team experience to cultivate customer relationships as Ecosystems Mindset is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Ecosystems Mindset 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Bringing Product and Consumer Ecosystems to the Strategic Forefront, in the dynamic environment Ecosystems Mindset has struggled to respond to the nimble upstart competition. Ecosystems Mindset has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Mayukh Dass, Shivina Kumar suggests that, Ecosystems Mindset 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.
Opportunities Bringing Product and Consumer Ecosystems to the Strategic Forefront | 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 Bringing Product and Consumer Ecosystems to the Strategic Forefront are -
Developing new processes and practices
– Ecosystems Mindset can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Better consumer reach
– The expansion of the 5G network will help Ecosystems Mindset to increase its market reach. Ecosystems Mindset 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 Ecosystems Mindset 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.
Creating value in data economy
– The success of analytics program of Ecosystems Mindset has opened avenues for new revenue streams for the organization in the industry. This can help Ecosystems Mindset to build a more holistic ecosystem as suggested in the Bringing Product and Consumer Ecosystems to the Strategic Forefront case study. Ecosystems Mindset can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Ecosystems Mindset 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.
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. Ecosystems Mindset can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ecosystems Mindset can use these opportunities to build new business models that can help the communities that Ecosystems Mindset operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Buying journey improvements
– Ecosystems Mindset can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Bringing Product and Consumer Ecosystems to the Strategic Forefront 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ecosystems Mindset 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, Bringing Product and Consumer Ecosystems to the Strategic Forefront, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ecosystems Mindset is facing challenges because of the dominance of functional experts in the organization. Bringing Product and Consumer Ecosystems to the Strategic Forefront 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.
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 Ecosystems Mindset in the consumer business. Now Ecosystems Mindset can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Ecosystems Mindset 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
– Ecosystems Mindset 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 Bringing Product and Consumer Ecosystems to the Strategic Forefront - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ecosystems Mindset to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Bringing Product and Consumer Ecosystems to the Strategic Forefront External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bringing Product and Consumer Ecosystems to the Strategic Forefront are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ecosystems Mindset in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Environmental challenges
– Ecosystems Mindset needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Ecosystems Mindset can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Shortening product life cycle
– it is one of the major threat that Ecosystems Mindset is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Ecosystems Mindset 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.
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 Ecosystems Mindset in the Leadership & Managing People sector and impact the bottomline 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. Ecosystems Mindset can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ecosystems Mindset 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 Bringing Product and Consumer Ecosystems to the Strategic Forefront .
High dependence on third party suppliers
– Ecosystems Mindset 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.
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.
Consumer confidence and its impact on Ecosystems Mindset 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.
Technology acceleration in Forth Industrial Revolution
– Ecosystems Mindset has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Ecosystems Mindset 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.
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.
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 Ecosystems Mindset.
Weighted SWOT Analysis of Bringing Product and Consumer Ecosystems to the Strategic Forefront 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 Bringing Product and Consumer Ecosystems to the Strategic Forefront 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 Bringing Product and Consumer Ecosystems to the Strategic Forefront 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 Bringing Product and Consumer Ecosystems to the Strategic Forefront 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 Bringing Product and Consumer Ecosystems to the Strategic Forefront 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 Ecosystems Mindset needs to make to build a sustainable competitive advantage.