Module 5 - CS Internal and External SWOT - Essay Example

Module 5 - CS Internal and External SWOT An understanding of SWOT Analysis: The case of Mozilla’s Firefox Introduction From its humble acronym, SWOT which can be interpreted as Strengths, Weaknesses, Threats and Opportunities can be applied to any business case. It could be a company or industry. It could be a product or service that fulfils a customer need. In this case analysis, we begin with a reasonably detailed background about the strategic underpinnings of the SWOT analysis. We then proceed to apply the SWOT analysis to Mozilla’s Firefox browser.

The criticality of the SWOT process There are different situations where the SWOT could be applied. For instance, a company with intent to launch new products could be using SWOT to identify the potential market and target customers. An entrepreneur with an idea could be using it to scan the business environment for unmet needs and therefore launch his or her product. Additionally, a SWOT analysis could be useful even when the company is growing and it is focused on sustained, profitable growth.

In the strategy planning process, the company identifies the various operations and processes that go into designing the future, desired state (Eicher, 2006). We can visualize the SWOT process just before the identification of the detailed operational activities. Effectively, we see the SWOT as setting the stage for the strategic planning process. Porter (1996) suggests that strategy lies behind the ability to think and act differently from rivals: the focus here is on using SWOT to identify what could lead to better strategy.

Strategic Thinking, Leadership and Planning: Action or perspective? Goldman (2007) defines strategic thinking in terms of an innovative management approach to a problem that steers clear of conventional thinking and charts out a new growth path for the firm or industry in question. To illustrate how management thinking could be different from strategic thinking, think of this situation. If a CEO decides to go for geographical expansion in the firm’s own country, then it could be called a management decision that sprung from management thinking.

However, if he fosters and launches the development of an unheard of product or service where no prior sales history exists, then it could be the result of strategic thinking. Strategic leadership is a macro term that calls into question the CEO or the leader’s ability to influence and lead the team towards a new direction. Strategic leadership again stresses the ability to chart out new terrains (Goldman, 2007) in a quest to achieve growth and profits for the firm. Arguably, strategic thinking calls for a set of personality traits in the leader.

The CEO or the leader is expected to be good at team work, resolving conflicts and motivating employees. Additionally, CEOs practising strategic leadership need to develop the vision to look into the future for new markets, products and services. Strategic planning is about putting the long term goals into action mode. This envisages creation of the right teams, development of the hundreds of activities and processes that lead to the launch of products and services and monitoring every stage of the process.

It is similar to any other planning activity with one chief distinction: the project, product or service has not been well understood and yet, it could have a large bearing on the future profits of the company. SWOT Analysis of Mozilla’s Firefox Strengths Incremental innovation inspired by thousands of volunteers: while Microsoft’s IE can only come up with a new product in 2-3 years, Firefox can make constant upgrades making life simpler for internet users Intrinsic motivation: the volunteers who make up the online community developing Firefox are not driven by monetary motives; rather they are inspired by altruistic intentions.

Firefox is lean and does not occupy too much space, making it a fast and efficient browser. This was possible due to the innovative efforts of Ross and Hyatt (Freedman, 2007). The browser is adaptable and flexible and can match with any operating system. It can run with Windows or with Linux or any other new operating system. Firefox was developed with a high level of security: it ensured that the system was not affected with malware and viruses that crept onto hard disks through the internet.

Effectively, this was one of the chief reasons for growing popularity of Firefox compared to Microsoft’s IE. Weaknesses Mozilla is a non-profit organization and hence could be vulnerable to complacency. After all, there are no defined sales and profit targets. Firefox is the result of coordination of loosely-knit disparate modules built around a central, strong core. However, the incremental innovations are liable to go unchecked if systems and processes are not monitored carefully. A change in leadership could also upset the delicate balance.

In the case, we note that Baker has been successful on account of her extraordinary abilities to network and influence people without any trace of overt authority. Opportunities Mozilla could partner with several e-commerce firms for revenue generation through advertising and search features. This could be an area of growth for the firm Firefox could explore contracts with internet security firms so as to even further minimize threats due to viruses and malware. From the user perspective, the need for security continues to be an important factor influencing usage.

Threats Any new internet browser could be a threat. So far, IE has been the main challenger Explosion of viruses and malware could pose a security issue: there are as many hackers who are keen to penetrate internet security and destroy online transactions, especially in the domain of e-commerce. Firefox: future course of action Throughout the case, there is deeper emphasis on the threats to internet security. In this realm, Mozilla could create a separate open access team of stalwarts who could be focused on developing more robust security systems.

Secondly, Baker could probably create more incentives for developers: this could be in the form of memberships, invitation to key events and honoring innovative contributions. On the whole, this could be an exemplary case of strategic leadership on her part. Finally, Mozilla needs to look at advanced features with a view to future consumers and unmet needs. In this regard, Baker needs to look at strategically leading her team to think a decade and beyond (Sull, 2007). Of course, this could be accomplished only through a series of planned and coordinated meetings with several contributors.

While we conclude the case analysis, we realize that it has touched upon several elements of strategic leadership, planning and execution. On the whole, the case is more about the evolution of Firefox set against the leadership style of Baker. We have made an honest attempt to understand the SWOT analysis against the backdrop of strategic thinking, leadership, planning and implementation. References Eicher, J. P. (2006). Making strategy happen. Performance Improvement, 45(10), 31-37, Freedman, D. H. (2007).

Mitchell Baker and the Firefox paradox. Inc 29(2), 104-11. Goldman, E. F. (2007). Strategic Thinking at the Top. MIT Sloan Management Review, 48(4), 75-81 Sull, D. N. (2007). Closing the gap between strategy and execution. MIT Sloan Management Review, 48(4), 30-38. Porter, M.E. (1996). What is Strategy? Harvard Business Review, 75(6), 61-78.