AcadeMedia (0RHN) SWOT Analysis / TOWS Matrix / MBA Resources
Schools
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for AcadeMedia (United Kingdom)
Based on various researches at Oak Spring University , AcadeMedia is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, there is backlash against globalization, increasing energy prices,
cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that AcadeMedia can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the AcadeMedia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which AcadeMedia 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 AcadeMedia can be done for the following purposes –
1. Strategic planning of AcadeMedia
2. Improving business portfolio management of AcadeMedia
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Schools sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of AcadeMedia
Strengths of AcadeMedia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of AcadeMedia are -
Cross disciplinary teams
– Horizontal connected teams at the AcadeMedia 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.
Effective Research and Development (R&D)
– AcadeMedia has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – AcadeMedia staying ahead in the Schools industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Schools industry
– AcadeMedia has clearly differentiated products in the market place. This has enabled AcadeMedia to fetch slight price premium compare to the competitors in the Schools industry. The sustainable margins have also helped AcadeMedia to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy of AcadeMedia comprises – understanding the underlying the factors in the Schools 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
– AcadeMedia is present in almost all the verticals within the Schools industry. This has provided AcadeMedia 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.
Highly skilled collaborators
– AcadeMedia has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Schools industry. Secondly the value chain collaborators of AcadeMedia have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– AcadeMedia is one of the leading players in the Schools industry in United Kingdom. It is in a position to attract the best talent available in United Kingdom. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of AcadeMedia in Schools industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– AcadeMedia is one of the most innovative firm in Schools sector.
Learning organization
- AcadeMedia 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 AcadeMedia is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at AcadeMedia emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of AcadeMedia in the Services sector have low bargaining power. AcadeMedia has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps AcadeMedia to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Schools industry
- digital transformation varies from industry to industry. For AcadeMedia digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. AcadeMedia 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.
Weaknesses of AcadeMedia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AcadeMedia are -
Need for greater diversity
– AcadeMedia 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.
Ability to respond to the competition
– As the decision making is very deliberative at AcadeMedia, in the dynamic environment of Schools industry it has struggled to respond to the nimble upstart competition. AcadeMedia 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, AcadeMedia 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.
Lack of clear differentiation of AcadeMedia products
– To increase the profitability and margins on the products, AcadeMedia needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners in Schools industry
– because of the regulatory requirements in United Kingdom, AcadeMedia 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 Schools industry.
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 AcadeMedia supply chain. Even after few cautionary changes, AcadeMedia is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left AcadeMedia vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of AcadeMedia is dominated by functional specialists. It is not different from other players in the Schools industry, but AcadeMedia needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help AcadeMedia to focus more on services in the Schools industry rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, AcadeMedia has high operating costs in the Schools industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract AcadeMedia lucrative customers.
High dependence on AcadeMedia ‘s star products
– The top 2 products and services of AcadeMedia still accounts for major business revenue. This dependence on star products in Schools industry has resulted into insufficient focus on developing new products, even though AcadeMedia has relatively successful track record of launching new products.
Aligning sales with marketing
– From the outside it seems that AcadeMedia needs to have more collaboration between its sales team and marketing team. Sales professionals in the Schools industry have deep experience in developing customer relationships. Marketing department at AcadeMedia can leverage the sales team experience to cultivate customer relationships as AcadeMedia is planning to shift buying processes online.
Products dominated business model
– Even though AcadeMedia has some of the most successful models in the Schools industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. AcadeMedia should strive to include more intangible value offerings along with its core products and services.
AcadeMedia Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of AcadeMedia are -
Using analytics as competitive advantage
– AcadeMedia has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Schools sector. This continuous investment in analytics has enabled AcadeMedia to build a competitive advantage using analytics. The analytics driven competitive advantage can help AcadeMedia to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at AcadeMedia 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 Schools industry.
Manufacturing automation
– AcadeMedia can use the latest technology developments to improve its manufacturing and designing process in Schools sector. 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 AcadeMedia has opened avenues for new revenue streams for the organization in Schools industry. This can help AcadeMedia to build a more holistic ecosystem for AcadeMedia products in the Schools industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– AcadeMedia can improve the customer journey of consumers in the Schools industry by using analytics and artificial intelligence. It 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.
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 AcadeMedia 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects AcadeMedia can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– AcadeMedia 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, AcadeMedia 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.
Use of Bitcoin and other crypto currencies for transactions in Schools industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for AcadeMedia in the Schools industry. Now AcadeMedia can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Schools industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. AcadeMedia 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. AcadeMedia 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.
Developing new processes and practices
– AcadeMedia can develop new processes and procedures in Schools 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for AcadeMedia 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 AcadeMedia to hire the very best people irrespective of their geographical location.
Threats AcadeMedia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of AcadeMedia are -
Regulatory challenges
– AcadeMedia 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 Schools industry regulations.
Stagnating economy with rate increase
– AcadeMedia 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 Schools industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, AcadeMedia may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Schools sector.
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 AcadeMedia in the Schools 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. AcadeMedia needs to understand the core reasons impacting the Schools industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Schools industry are lowering. It can presents AcadeMedia with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Schools sector.
High dependence on third party suppliers
– AcadeMedia 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.
Consumer confidence and its impact on AcadeMedia 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 Schools industry and other sectors.
Increasing wage structure of AcadeMedia
– 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 AcadeMedia.
Environmental challenges
– AcadeMedia 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. AcadeMedia can take advantage of this fund but it will also bring new competitors in the Schools industry.
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.
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. AcadeMedia 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.
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 AcadeMedia business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of AcadeMedia Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at AcadeMedia 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 AcadeMedia 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 AcadeMedia 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 AcadeMedia 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 AcadeMedia needs to make to build a sustainable competitive advantage.