Eco$ave, Can They Save the Planned Business? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Eco$ave, Can They Save the Planned Business?
This case is primarily used for teaching students how to make reasonable decisions with regard to entrepreneurship or starting a business, regardless of whether they have any working experience. The insights drawn from the case are more applicable, though, to undergraduate students who have little working experience but fantasize about entrepreneurship. This case provides a unique angle from which to examine various issues that a potential entrepreneur has to deal with and touches upon several intriguing concepts/models, such as opportunity cost, business model and social enterprise.
Swot Analysis of "Eco$ave, Can They Save the Planned Business?" written by Yanfeng Zheng includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ave Fantasize facing as an external strategic factors. Some of the topics covered in Eco$ave, Can They Save the Planned Business? case study are - Strategic Management Strategies, Social enterprise, Strategic planning and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Eco$ave, Can They Save the Planned Business? casestudy better are - – increasing government debt because of Covid-19 spendings, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, geopolitical disruptions, technology disruption, competitive advantages are harder to sustain because of technology dispersion,
wage bills are increasing, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Eco$ave, Can They Save the Planned Business?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Eco$ave, Can They Save the Planned Business? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ave Fantasize, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ave Fantasize operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Eco$ave, Can They Save the Planned Business? can be done for the following purposes –
1. Strategic planning using facts provided in Eco$ave, Can They Save the Planned Business? case study
2. Improving business portfolio management of Ave Fantasize
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ave Fantasize
Strengths Eco$ave, Can They Save the Planned Business? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ave Fantasize in Eco$ave, Can They Save the Planned Business? Harvard Business Review case study are -
Successful track record of launching new products
– Ave Fantasize has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ave Fantasize has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Diverse revenue streams
– Ave Fantasize is present in almost all the verticals within the industry. This has provided firm in Eco$ave, Can They Save the Planned Business? 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.
Innovation driven organization
– Ave Fantasize is one of the most innovative firm in sector. Manager in Eco$ave, Can They Save the Planned Business? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Leadership & Managing People industry
– Eco$ave, Can They Save the Planned Business? firm has clearly differentiated products in the market place. This has enabled Ave Fantasize to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Ave Fantasize to invest into research and development (R&D) and innovation.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Ave Fantasize digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ave Fantasize 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.
Highly skilled collaborators
– Ave Fantasize 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 Eco$ave, Can They Save the Planned Business? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Ave Fantasize are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Strong track record of project management
– Ave Fantasize is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Ave Fantasize has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to recruit top talent
– Ave Fantasize is one of the leading recruiters in the industry. Managers in the Eco$ave, Can They Save the Planned Business? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Ave Fantasize has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ave Fantasize to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Ave Fantasize has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Eco$ave, Can They Save the Planned Business? Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses Eco$ave, Can They Save the Planned Business? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Eco$ave, Can They Save the Planned Business? are -
Interest costs
– Compare to the competition, Ave Fantasize has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to strategic competitive environment developments
– As Eco$ave, Can They Save the Planned Business? HBR case study mentions - Ave Fantasize 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.
Aligning sales with marketing
– It come across in the case study Eco$ave, Can They Save the Planned Business? that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Eco$ave, Can They Save the Planned Business? can leverage the sales team experience to cultivate customer relationships as Ave Fantasize is planning to shift buying processes online.
Lack of clear differentiation of Ave Fantasize products
– To increase the profitability and margins on the products, Ave Fantasize needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Ave Fantasize has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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 Ave Fantasize supply chain. Even after few cautionary changes mentioned in the HBR case study - Eco$ave, Can They Save the Planned Business?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ave Fantasize vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Eco$ave, Can They Save the Planned Business? 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 Ave Fantasize 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Eco$ave, Can They Save the Planned Business?, is just above the industry average. Ave Fantasize needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High bargaining power of channel partners
– Because of the regulatory requirements, Yanfeng Zheng suggests that, Ave Fantasize is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Eco$ave, Can They Save the Planned Business? 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 Ave Fantasize has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Ave Fantasize is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Ave Fantasize needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ave Fantasize to focus more on services rather than just following the product oriented approach.
Opportunities Eco$ave, Can They Save the Planned Business? | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Eco$ave, Can They Save the Planned Business? are -
Better consumer reach
– The expansion of the 5G network will help Ave Fantasize to increase its market reach. Ave Fantasize 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 Ave Fantasize 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 Ave Fantasize in the consumer business. Now Ave Fantasize can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ave Fantasize 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.
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 Ave Fantasize 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ave Fantasize is facing challenges because of the dominance of functional experts in the organization. Eco$ave, Can They Save the Planned Business? case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ave Fantasize in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Ave Fantasize has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Eco$ave, Can They Save the Planned Business? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ave Fantasize to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Ave Fantasize 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.
Manufacturing automation
– Ave Fantasize 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.
Creating value in data economy
– The success of analytics program of Ave Fantasize has opened avenues for new revenue streams for the organization in the industry. This can help Ave Fantasize to build a more holistic ecosystem as suggested in the Eco$ave, Can They Save the Planned Business? case study. Ave Fantasize can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ave Fantasize can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Ave Fantasize can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Ave Fantasize can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Eco$ave, Can They Save the Planned Business? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Eco$ave, Can They Save the Planned Business? 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 Ave Fantasize business can come under increasing regulations regarding data privacy, data security, etc.
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. Ave Fantasize can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Ave Fantasize 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.
Technology acceleration in Forth Industrial Revolution
– Ave Fantasize has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Ave Fantasize 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ave Fantasize with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ave Fantasize 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 Eco$ave, Can They Save the Planned Business? .
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. Ave Fantasize 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.
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 Ave Fantasize.
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.
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.
Environmental challenges
– Ave Fantasize 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. Ave Fantasize can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 Ave Fantasize in the Leadership & Managing People sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Ave Fantasize is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Eco$ave, Can They Save the Planned Business? Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Eco$ave, Can They Save the Planned Business? 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 Eco$ave, Can They Save the Planned Business? is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Eco$ave, Can They Save the Planned Business? 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 Eco$ave, Can They Save the Planned Business? 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 Ave Fantasize needs to make to build a sustainable competitive advantage.
