The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart
Supplement to case IN1075. Vince McMahon's World Wrestling Federation faces a serious threat to survival from the deep pockets of media mogul Ted Turner and Time-Warner, Inc. McMahon must tackle management, business, and ethics challenges when Turner tries to lure the WWF's top star, Bret the Hitman Hart, away from the WWF.
Swot Analysis of "The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart" written by Thomas Mannarelli, Christopher Baty includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bret Mcmahon facing as an external strategic factors. Some of the topics covered in The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart case study are - Strategic Management Strategies, Entrepreneurship, Ethics, Innovation and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, 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 energy prices, etc
Introduction to SWOT Analysis of The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bret Mcmahon, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bret Mcmahon 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 The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart can be done for the following purposes –
1. Strategic planning using facts provided in The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart case study
2. Improving business portfolio management of Bret Mcmahon
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 Bret Mcmahon
Strengths The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bret Mcmahon in The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart Harvard Business Review case study are -
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Bret Mcmahon digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bret Mcmahon 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.
Learning organization
- Bret Mcmahon 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 Bret Mcmahon is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Bret Mcmahon is one of the most innovative firm in sector. Manager in The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Bret Mcmahon
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bret Mcmahon 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
– Bret Mcmahon 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 Bret Mcmahon in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Bret Mcmahon is present in almost all the verticals within the industry. This has provided firm in The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart 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 Bret Mcmahon in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Leadership & Managing People industry
– The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart firm has clearly differentiated products in the market place. This has enabled Bret Mcmahon to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Bret Mcmahon to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Bret Mcmahon in the sector have low bargaining power. The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bret Mcmahon to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Bret Mcmahon 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.
Operational resilience
– The operational resilience strategy in the The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart 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.
High switching costs
– The high switching costs that Bret Mcmahon 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 The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart 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 Bret Mcmahon has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart, it seems that the employees of Bret Mcmahon 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.
Low market penetration in new markets
– Outside its home market of Bret Mcmahon, firm in the HBR case study The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Bret Mcmahon 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 Bret Mcmahon products
– To increase the profitability and margins on the products, Bret Mcmahon needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Bret Mcmahon 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.
Increasing silos among functional specialists
– The organizational structure of Bret Mcmahon is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Bret Mcmahon needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bret Mcmahon to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Bret Mcmahon 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.
No frontier risks strategy
– After analyzing the HBR case study The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart, 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.
Skills based hiring
– The stress on hiring functional specialists at Bret Mcmahon has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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 Bret Mcmahon supply chain. Even after few cautionary changes mentioned in the HBR case study - The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bret Mcmahon vulnerable to further global disruptions in South East Asia.
Opportunities The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart | 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 The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart are -
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. Bret Mcmahon 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. Bret Mcmahon 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.
Building a culture of innovation
– managers at Bret Mcmahon 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bret Mcmahon can use these opportunities to build new business models that can help the communities that Bret Mcmahon operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Using analytics as competitive advantage
– Bret Mcmahon 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 The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bret Mcmahon to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Bret Mcmahon can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart 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.
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 Bret Mcmahon 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.
Loyalty marketing
– Bret Mcmahon 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, Bret Mcmahon 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bret Mcmahon 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 Bret Mcmahon to hire the very best people irrespective of their geographical location.
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 Bret Mcmahon in the consumer business. Now Bret Mcmahon can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Bret Mcmahon 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bret Mcmahon 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, The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Bret Mcmahon can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart are -
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. Bret Mcmahon can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Bret Mcmahon 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 Bret Mcmahon 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.
Shortening product life cycle
– it is one of the major threat that Bret Mcmahon is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Bret Mcmahon
– 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 Bret Mcmahon.
Technology acceleration in Forth Industrial Revolution
– Bret Mcmahon has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Bret Mcmahon 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.
Stagnating economy with rate increase
– Bret Mcmahon 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.
Regulatory challenges
– Bret Mcmahon 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.
Environmental challenges
– Bret Mcmahon 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. Bret Mcmahon can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Bret Mcmahon needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bret Mcmahon 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 The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart .
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.
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.
Weighted SWOT Analysis of The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart 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 The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart 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 The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart 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 The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart 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 The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart 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 Bret Mcmahon needs to make to build a sustainable competitive advantage.