More is not always better: Cybage's Growth Strategy by Internal Focus SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of More is not always better: Cybage's Growth Strategy by Internal Focus
Headquartered in Pune, India, Cybage was one of the plethora of players in the Indian software and information technology ("IT") services sector. Nevertheless, Cybage had enjoyed a double-digit growth rate in the past few years, compared to the industry's growth rate of 14.9% in 2011. Could Cybage's growth be attributed to the general expansion of India's knowledge economy, or had Cybage developed a set of capabilities that differentiated the company from its peers and drove the company to expand from a handful of IT practitioners to a company with a global footprint of nearly 4,000 professionals? What were Cybage's differentiators and how did they become the company's core competencies, allowing it to make headway despite competition from top-tier Indian IT companies?
Swot Analysis of "More is not always better: Cybage's Growth Strategy by Internal Focus" written by Abhishek Kathuria, Elsha Yiu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cybage Cybage's facing as an external strategic factors. Some of the topics covered in More is not always better: Cybage's Growth Strategy by Internal Focus case study are - Strategic Management Strategies, Supply chain and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the More is not always better: Cybage's Growth Strategy by Internal Focus casestudy better are - – there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy,
digital marketing is dominated by two big players Facebook and Google, increasing energy prices, etc
Introduction to SWOT Analysis of More is not always better: Cybage's Growth Strategy by Internal Focus
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in More is not always better: Cybage's Growth Strategy by Internal Focus case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cybage Cybage's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cybage Cybage's 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 More is not always better: Cybage's Growth Strategy by Internal Focus can be done for the following purposes –
1. Strategic planning using facts provided in More is not always better: Cybage's Growth Strategy by Internal Focus case study
2. Improving business portfolio management of Cybage Cybage's
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 Cybage Cybage's
Strengths More is not always better: Cybage's Growth Strategy by Internal Focus | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cybage Cybage's in More is not always better: Cybage's Growth Strategy by Internal Focus Harvard Business Review case study are -
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Cybage Cybage's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cybage Cybage's 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.
Innovation driven organization
– Cybage Cybage's is one of the most innovative firm in sector. Manager in More is not always better: Cybage's Growth Strategy by Internal Focus Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Cybage Cybage's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cybage Cybage's 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
– Cybage Cybage's 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 More is not always better: Cybage's Growth Strategy by Internal Focus HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Cybage Cybage's in the sector have low bargaining power. More is not always better: Cybage's Growth Strategy by Internal Focus has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cybage Cybage's to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Leadership & Managing People field
– Cybage Cybage's 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 Cybage Cybage's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Cybage Cybage's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cybage Cybage's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Cybage Cybage's 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.
Learning organization
- Cybage Cybage's 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 Cybage Cybage's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in More is not always better: Cybage's Growth Strategy by Internal Focus Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Cybage Cybage's 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.
Superior customer experience
– The customer experience strategy of Cybage Cybage's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Cybage Cybage's is one of the leading recruiters in the industry. Managers in the More is not always better: Cybage's Growth Strategy by Internal Focus 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 More is not always better: Cybage's Growth Strategy by Internal Focus | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of More is not always better: Cybage's Growth Strategy by Internal Focus are -
High operating costs
– Compare to the competitors, firm in the HBR case study More is not always better: Cybage's Growth Strategy by Internal Focus 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 Cybage Cybage's 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Abhishek Kathuria, Elsha Yiu suggests that, Cybage Cybage's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Cybage Cybage's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study More is not always better: Cybage's Growth Strategy by Internal Focus, in the dynamic environment Cybage Cybage's has struggled to respond to the nimble upstart competition. Cybage Cybage's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Cybage Cybage's 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.
Slow to strategic competitive environment developments
– As More is not always better: Cybage's Growth Strategy by Internal Focus HBR case study mentions - Cybage Cybage's takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study More is not always better: Cybage's Growth Strategy by Internal Focus, it seems that the employees of Cybage Cybage's 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.
Interest costs
– Compare to the competition, Cybage Cybage's 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study More is not always better: Cybage's Growth Strategy by Internal Focus, is just above the industry average. Cybage Cybage's 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 cash cycle compare to competitors
Cybage Cybage's has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Increasing silos among functional specialists
– The organizational structure of Cybage Cybage's is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Cybage Cybage's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cybage Cybage's to focus more on services rather than just following the product oriented approach.
Opportunities More is not always better: Cybage's Growth Strategy by Internal Focus | 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 More is not always better: Cybage's Growth Strategy by Internal Focus are -
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. Cybage Cybage's 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. Cybage Cybage's 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.
Using analytics as competitive advantage
– Cybage Cybage's 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 More is not always better: Cybage's Growth Strategy by Internal Focus - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cybage Cybage's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Cybage Cybage's to increase its market reach. Cybage Cybage's 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.
Loyalty marketing
– Cybage Cybage's 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.
Manufacturing automation
– Cybage Cybage's 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.
Building a culture of innovation
– managers at Cybage Cybage's 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. Cybage Cybage's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Cybage Cybage's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. More is not always better: Cybage's Growth Strategy by Internal Focus 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.
Creating value in data economy
– The success of analytics program of Cybage Cybage's has opened avenues for new revenue streams for the organization in the industry. This can help Cybage Cybage's to build a more holistic ecosystem as suggested in the More is not always better: Cybage's Growth Strategy by Internal Focus case study. Cybage Cybage's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Cybage Cybage's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cybage Cybage's can use these opportunities to build new business models that can help the communities that Cybage Cybage's operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cybage Cybage's 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cybage Cybage's 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 Cybage Cybage's to hire the very best people irrespective of their geographical location.
Threats More is not always better: Cybage's Growth Strategy by Internal Focus External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study More is not always better: Cybage's Growth Strategy by Internal Focus are -
Increasing wage structure of Cybage Cybage's
– 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 Cybage Cybage's.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cybage Cybage's 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
– Cybage Cybage's 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.
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 Cybage Cybage's.
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. Cybage Cybage's needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Cybage Cybage's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cybage Cybage's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Cybage Cybage's business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Cybage Cybage's 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.
Shortening product life cycle
– it is one of the major threat that Cybage Cybage's is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Cybage Cybage's in the Leadership & Managing People sector and impact the bottomline of the organization.
Regulatory challenges
– Cybage Cybage's 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.
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.
Weighted SWOT Analysis of More is not always better: Cybage's Growth Strategy by Internal Focus 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 More is not always better: Cybage's Growth Strategy by Internal Focus 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 More is not always better: Cybage's Growth Strategy by Internal Focus 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 More is not always better: Cybage's Growth Strategy by Internal Focus 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 More is not always better: Cybage's Growth Strategy by Internal Focus 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 Cybage Cybage's needs to make to build a sustainable competitive advantage.
