James Houghton and Signature Theatre SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of James Houghton and Signature Theatre
University of California, Berkeley-Haas collectionThe case describes the history of Signature Theatre, started by James Houghton 23 years ago. Signature Theatre is an example of a successful organization with a powerful mission and vision, and one that has stuck to its mission throughout the years. The theater has gone through many stages under Houghton's leadership, eventually growing to a $12 million annual budget with a new $70 million production facility featuring a unique, open community gathering space as a central feature. Along the way, Houghton has become one of the most respected and influential leaders in his field. Please note: this case also has a supplementary case available. The supplement can be found using product number B5800.
Authors :: Laura Callanan, Jane Wei-Skillern, Prentice Onayemi
Swot Analysis of "James Houghton and Signature Theatre" written by Laura Callanan, Jane Wei-Skillern, Prentice Onayemi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Houghton Theatre facing as an external strategic factors. Some of the topics covered in James Houghton and Signature Theatre case study are - Strategic Management Strategies, Leadership, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the James Houghton and Signature Theatre casestudy better are - – geopolitical disruptions, increasing transportation and logistics costs, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, there is increasing trade war between United States & China,
supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of James Houghton and Signature Theatre
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in James Houghton and Signature Theatre case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Houghton Theatre, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Houghton Theatre 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 James Houghton and Signature Theatre can be done for the following purposes –
1. Strategic planning using facts provided in James Houghton and Signature Theatre case study
2. Improving business portfolio management of Houghton Theatre
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 Houghton Theatre
Strengths James Houghton and Signature Theatre | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Houghton Theatre in James Houghton and Signature Theatre Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the James Houghton and Signature Theatre 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.
Analytics focus
– Houghton Theatre 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 Laura Callanan, Jane Wei-Skillern, Prentice Onayemi 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– James Houghton and Signature Theatre firm has clearly differentiated products in the market place. This has enabled Houghton Theatre to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Houghton Theatre to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Houghton Theatre is one of the leading recruiters in the industry. Managers in the James Houghton and Signature Theatre are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Houghton Theatre in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Houghton Theatre has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Houghton Theatre to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Houghton Theatre is one of the most innovative firm in sector. Manager in James Houghton and Signature Theatre Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Houghton Theatre 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 Houghton Theatre is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in James Houghton and Signature Theatre Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Houghton Theatre is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Houghton Theatre 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 James Houghton and Signature Theatre - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Houghton Theatre has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Houghton Theatre 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.
Ability to lead change in Leadership & Managing People field
– Houghton Theatre 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 Houghton Theatre in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses James Houghton and Signature Theatre | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of James Houghton and Signature Theatre are -
Increasing silos among functional specialists
– The organizational structure of Houghton Theatre is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Houghton Theatre needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Houghton Theatre to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Houghton Theatre, firm in the HBR case study James Houghton and Signature Theatre needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study James Houghton and Signature Theatre, is just above the industry average. Houghton Theatre 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 operating costs
– Compare to the competitors, firm in the HBR case study James Houghton and Signature Theatre 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 Houghton Theatre 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Houghton Theatre is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study James Houghton and Signature Theatre 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 James Houghton and Signature Theatre 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 James Houghton and Signature Theatre can leverage the sales team experience to cultivate customer relationships as Houghton Theatre is planning to shift buying processes online.
Products dominated business model
– Even though Houghton Theatre has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - James Houghton and Signature Theatre should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Laura Callanan, Jane Wei-Skillern, Prentice Onayemi suggests that, Houghton Theatre 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.
Lack of clear differentiation of Houghton Theatre products
– To increase the profitability and margins on the products, Houghton Theatre needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Houghton Theatre has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Houghton Theatre even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
No frontier risks strategy
– After analyzing the HBR case study James Houghton and Signature Theatre, 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.
Opportunities James Houghton and Signature Theatre | 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 James Houghton and Signature Theatre are -
Better consumer reach
– The expansion of the 5G network will help Houghton Theatre to increase its market reach. Houghton Theatre 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Houghton Theatre 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 Houghton Theatre to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Houghton Theatre can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Houghton Theatre 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, James Houghton and Signature Theatre, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Houghton Theatre 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. Houghton Theatre 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.
Leveraging digital technologies
– Houghton Theatre 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Houghton Theatre is facing challenges because of the dominance of functional experts in the organization. James Houghton and Signature Theatre 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.
Developing new processes and practices
– Houghton Theatre 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.
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 Houghton Theatre in the consumer business. Now Houghton Theatre can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Houghton Theatre 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.
Creating value in data economy
– The success of analytics program of Houghton Theatre has opened avenues for new revenue streams for the organization in the industry. This can help Houghton Theatre to build a more holistic ecosystem as suggested in the James Houghton and Signature Theatre case study. Houghton Theatre can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Houghton Theatre 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 James Houghton and Signature Theatre - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Houghton Theatre to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Houghton Theatre 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 James Houghton and Signature Theatre External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study James Houghton and Signature Theatre are -
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 Houghton Theatre.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study James Houghton and Signature Theatre, Houghton Theatre 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 .
Consumer confidence and its impact on Houghton Theatre 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.
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
– Houghton Theatre 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. Houghton Theatre can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Houghton Theatre needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Houghton Theatre 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Houghton Theatre 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.
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. Houghton Theatre can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Houghton Theatre 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.
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 Houghton Theatre in the Leadership & Managing People sector and impact the bottomline of the organization.
Regulatory challenges
– Houghton Theatre 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. Houghton Theatre 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.
Weighted SWOT Analysis of James Houghton and Signature Theatre 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 James Houghton and Signature Theatre 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 James Houghton and Signature Theatre 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 James Houghton and Signature Theatre 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 James Houghton and Signature Theatre 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 Houghton Theatre needs to make to build a sustainable competitive advantage.