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 - – cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, geopolitical disruptions,
there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Padres Diego digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Padres Diego 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.
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.
Training and development
– Padres Diego has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment 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.
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.
Ability to recruit top talent
– Padres Diego is one of the leading recruiters in the industry. Managers in the San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
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.
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.
Innovation driven organization
– Padres Diego is one of the most innovative firm in sector. Manager in San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Padres Diego has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Padres Diego 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.
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.
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 -
Workers concerns about automation
– As automation is fast increasing in the segment, Padres Diego needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High bargaining power of channel partners
– Because of the regulatory requirements, George Foster, Antonio Davila, David W. Hoyt suggests that, Padres Diego 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment, it seems that the employees of Padres Diego 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.
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.
Aligning sales with marketing
– It come across in the case study San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment 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 San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment can leverage the sales team experience to cultivate customer relationships as Padres Diego is planning to shift buying processes online.
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.
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.
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.
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.
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.
Low market penetration in new markets
– Outside its home market of Padres Diego, firm in the HBR case study San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 -
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.
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.
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.
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.
Manufacturing automation
– Padres Diego 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.
Loyalty marketing
– Padres Diego has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Padres Diego 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.
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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Padres Diego to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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.
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 -
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.
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.
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.
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.
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.
High dependence on third party suppliers
– Padres Diego 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.
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 .
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. Padres Diego can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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. Padres Diego 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.
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.
Increasing wage structure of Padres Diego
– 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 Padres Diego.
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.
