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Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc.


For over forty years, Daktronics, Inc. had been one of the world's leading suppliers of electronic scoreboards, large electronic display systems, digital messaging solutions, software and services for sports venues, commercial and transportation applications. After decades of producing its products using a batch system, the multi-million dollar company made a formal decision to pursue lean manufacturing in February, 2006. The lean initiative took on even greater importance due to sluggishness in the U.S. economy and slowed sales in 2009. Now in 2010, four years after the lean project's initial launch, readers are asked, how successful has the lean conversion been, including the transition from a batch system to a high mix, flow line system? Is the firm poised and ready to extend its lean initiative to nonmanufacturing areas? By using clues within the case and detailed exhibits, the case provides a rich opportunity for readers to trace and evaluate an original equipment manufacturer's (OEM) lean journey. Ultimately, they should be able to answer questions, such as: What kinds of things did Daktronics appear to do correctly? What kinds of things could Daktronics have done differently... or better? What recommendations might follow from their experience for other OEMs that seek to implement lean manufacturing? What are the pros and cons of implementing lean techniques in nonmanufacturing areas?

Authors :: Nancy M. Levenburg

Topics :: Leadership & Managing People

Tags :: Manufacturing, Product development, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc." written by Nancy M. Levenburg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lean Daktronics facing as an external strategic factors. Some of the topics covered in Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. case study are - Strategic Management Strategies, Manufacturing, Product development and Leadership & Managing People.


Some of the macro environment factors that can be used to understand the Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, wage bills are increasing, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, etc



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Introduction to SWOT Analysis of Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc.


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lean Daktronics, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lean Daktronics 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 Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. can be done for the following purposes –
1. Strategic planning using facts provided in Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. case study
2. Improving business portfolio management of Lean Daktronics
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 Lean Daktronics




Strengths Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Lean Daktronics in Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. Harvard Business Review case study are -

Successful track record of launching new products

– Lean Daktronics has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lean Daktronics 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.

Training and development

– Lean Daktronics has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. 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.

Strong track record of project management

– Lean Daktronics is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Operational resilience

– The operational resilience strategy in the Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. 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.

Diverse revenue streams

– Lean Daktronics is present in almost all the verticals within the industry. This has provided firm in Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. 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.

Low bargaining power of suppliers

– Suppliers of Lean Daktronics in the sector have low bargaining power. Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Lean Daktronics to manage not only supply disruptions but also source products at highly competitive prices.

Effective Research and Development (R&D)

– Lean Daktronics 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 Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

High brand equity

– Lean Daktronics has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Lean Daktronics to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Ability to recruit top talent

– Lean Daktronics is one of the leading recruiters in the industry. Managers in the Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Organizational Resilience of Lean Daktronics

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Lean Daktronics does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Superior customer experience

– The customer experience strategy of Lean Daktronics in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

High switching costs

– The high switching costs that Lean Daktronics 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.






Weaknesses Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. are -

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc., in the dynamic environment Lean Daktronics has struggled to respond to the nimble upstart competition. Lean Daktronics has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Interest costs

– Compare to the competition, Lean Daktronics 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 Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. HBR case study mentions - Lean Daktronics 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.

High cash cycle compare to competitors

Lean Daktronics 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.

Lack of clear differentiation of Lean Daktronics products

– To increase the profitability and margins on the products, Lean Daktronics needs to provide more differentiated products than what it is currently offering in the marketplace.

Products dominated business model

– Even though Lean Daktronics 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 - Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. should strive to include more intangible value offerings along with its core products and services.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc., it seems that the employees of Lean Daktronics 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc., is just above the industry average. Lean Daktronics 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.

Aligning sales with marketing

– It come across in the case study Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. 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 Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. can leverage the sales team experience to cultivate customer relationships as Lean Daktronics is planning to shift buying processes online.

Capital Spending Reduction

– Even during the low interest decade, Lean Daktronics 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.

No frontier risks strategy

– After analyzing the HBR case study Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc., 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 Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. | 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 Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. are -

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Lean Daktronics 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, Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc., to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Using analytics as competitive advantage

– Lean Daktronics 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 Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Lean Daktronics to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Creating value in data economy

– The success of analytics program of Lean Daktronics has opened avenues for new revenue streams for the organization in the industry. This can help Lean Daktronics to build a more holistic ecosystem as suggested in the Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. case study. Lean Daktronics can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Lean Daktronics 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.

Building a culture of innovation

– managers at Lean Daktronics 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Lean Daktronics 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.

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. Lean Daktronics can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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 Lean Daktronics in the consumer business. Now Lean Daktronics can target international markets with far fewer capital restrictions requirements than the existing system.

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. Lean Daktronics can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Low interest rates

– Even though inflation is raising its head in most developed economies, Lean Daktronics 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Lean Daktronics can use these opportunities to build new business models that can help the communities that Lean Daktronics operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.

Manufacturing automation

– Lean Daktronics 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.

Developing new processes and practices

– Lean Daktronics 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.




Threats Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. are -

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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Lean Daktronics with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Regulatory challenges

– Lean Daktronics 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.

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 Lean Daktronics business can come under increasing regulations regarding data privacy, data security, etc.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Lean Daktronics 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 Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. .

Technology acceleration in Forth Industrial Revolution

– Lean Daktronics has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Lean Daktronics 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.

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 Lean Daktronics in the Leadership & Managing People sector and impact the bottomline of the organization.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Lean Daktronics needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.

Shortening product life cycle

– it is one of the major threat that Lean Daktronics is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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. Lean Daktronics 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.

Consumer confidence and its impact on Lean Daktronics 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc., Lean Daktronics 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 .

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. Lean Daktronics can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.




Weighted SWOT Analysis of Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. 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 Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. 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 Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. 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 Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. 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 Daktronics (D): Keen on Lean Manufacturing at Daktronics, Inc. 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 Lean Daktronics needs to make to build a sustainable competitive advantage.



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