San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment
In 1994, John Moores purchased the San Diego Padres baseball team. The team shared Qualcomm Stadium with the San Diego Chargers football team, which was the senior tenant and received a far higher share of stadium revenue than the Padres. As a result, the Padres' ability to support the payroll needed to field a competitive team was severely limited. The solution was to build a new ballpark for the Padres in a blighted area of downtown San Diego. Redevelopment of the blighted area was integrated into the ballpark construction project, with the Padres owner having the responsibility of being the master developer, and for guaranteeing increased tax revenues from the redevelopment. Typically, sports team owners had sought public funding of their new stadiums, promoting this with the expectation that the new stadium would catalyze other development-an expectation that was often not met. The San Diego Padres ballpark, PETCO Park, was the first integrated sports facility/redevelopment project ever attempted. In the end, the City of San Diego paid $301 million of the $474 million cost for the ballpark. By 2007 (three years after the ballpark opened), redevelopment projects worth approximately $4.25 billion had been completed, were underway, or were planned. Of these, $4 billion was privately funded. The previously blighted area was well on its way to a dramatic redevelopment. While the project turned out to be a huge success for the Padres, the City of San Diego, and the taxpayers of the City, there were, however, many obstacles that had to be overcome, including a 16 month halt in construction. The case describes the project, the role of the Padres, the City of San Diego, and other players.
Authors :: George Foster, Antonio Davila, David W. Hoyt
Swot Analysis of "San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment" written by George Foster, Antonio Davila, David W. Hoyt includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Padres Diego facing as an external strategic factors. Some of the topics covered in San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, wage bills are increasing,
increasing energy prices, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Padres Diego, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Padres Diego 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 San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment can be done for the following purposes –
1. Strategic planning using facts provided in San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment case study
2. Improving business portfolio management of Padres Diego
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 Padres Diego
Strengths San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Padres Diego in San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment Harvard Business Review case study are -
Learning organization
- Padres Diego 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 Padres Diego is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Padres Diego in the sector have low bargaining power. San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Padres Diego to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Padres Diego 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 San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Padres Diego 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 San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment 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
– Padres Diego is present in almost all the verticals within the industry. This has provided firm in San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment 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.
Superior customer experience
– The customer experience strategy of Padres Diego in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Padres Diego
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Padres Diego does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Leadership & Managing People field
– Padres Diego 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 Padres Diego in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Padres Diego 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment firm has clearly differentiated products in the market place. This has enabled Padres Diego to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Padres Diego to invest into research and development (R&D) and innovation.
Strong track record of project management
– Padres Diego is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment are -
Lack of clear differentiation of Padres Diego products
– To increase the profitability and margins on the products, Padres Diego needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Padres Diego is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Padres Diego has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment, is just above the industry average. Padres Diego 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.
No frontier risks strategy
– After analyzing the HBR case study San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment, 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.
Capital Spending Reduction
– Even during the low interest decade, Padres Diego 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.
Slow to strategic competitive environment developments
– As San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment HBR case study mentions - Padres Diego 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment, in the dynamic environment Padres Diego has struggled to respond to the nimble upstart competition. Padres Diego has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Padres Diego supply chain. Even after few cautionary changes mentioned in the HBR case study - San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Padres Diego vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Padres Diego 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 - San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Padres Diego 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. Padres Diego 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.
Opportunities San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment | 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 San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment are -
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 Padres Diego 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 Padres Diego 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.
Developing new processes and practices
– Padres Diego 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.
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. Padres Diego 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. Padres Diego 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Padres Diego 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 Padres Diego to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Padres Diego 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 San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Padres Diego 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 Padres Diego has opened avenues for new revenue streams for the organization in the industry. This can help Padres Diego to build a more holistic ecosystem as suggested in the San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment case study. Padres Diego can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Padres Diego can use these opportunities to build new business models that can help the communities that Padres Diego operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Leveraging digital technologies
– Padres Diego 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.
Better consumer reach
– The expansion of the 5G network will help Padres Diego to increase its market reach. Padres Diego 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Padres Diego can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Padres Diego can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Padres Diego can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment 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.
Threats San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment are -
Environmental challenges
– Padres Diego 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. Padres Diego can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 Padres Diego business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Padres Diego 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.
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.
Shortening product life cycle
– it is one of the major threat that Padres Diego is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Regulatory challenges
– Padres Diego 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Padres Diego 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 San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment .
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 Padres Diego.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Padres Diego 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.
Technology acceleration in Forth Industrial Revolution
– Padres Diego has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Padres Diego 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Padres Diego with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the 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 Padres Diego in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment 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 San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment 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 San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment 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 San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment 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 San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment 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 Padres Diego needs to make to build a sustainable competitive advantage.