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 - – digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies,
geopolitical disruptions, increasing household debt because of falling income levels, 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.
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.
High brand equity
– Bret Mcmahon has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bret Mcmahon to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Bret Mcmahon 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 The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
Ability to recruit top talent
– Bret Mcmahon is one of the leading recruiters in the industry. Managers in the The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
Analytics focus
– Bret Mcmahon is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Thomas Mannarelli, Christopher Baty can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
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.
Successful track record of launching new products
– Bret Mcmahon has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bret Mcmahon 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.
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.
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 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.
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.
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.
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.
Products dominated business model
– Even though Bret Mcmahon 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 - The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart should strive to include more intangible value offerings along with its core products and services.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bret Mcmahon is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart, in the dynamic environment Bret Mcmahon has struggled to respond to the nimble upstart competition. Bret Mcmahon 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 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.
Slow decision making process
– As mentioned earlier in the report, Bret Mcmahon 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. Bret Mcmahon 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.
Slow to strategic competitive environment developments
– As The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart HBR case study mentions - Bret Mcmahon 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.
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 -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bret Mcmahon is facing challenges because of the dominance of functional experts in the organization. The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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.
Creating value in data economy
– The success of analytics program of Bret Mcmahon has opened avenues for new revenue streams for the organization in the industry. This can help Bret Mcmahon to build a more holistic ecosystem as suggested in the The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart case study. Bret Mcmahon can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bret Mcmahon in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Bret Mcmahon 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.
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.
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.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Bret Mcmahon to increase its market reach. Bret Mcmahon 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.
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.
Learning at scale
– Online learning technologies has now opened space for Bret Mcmahon 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Bret Mcmahon can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 -
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bret Mcmahon 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 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The World Wrestling Federation (B): Vince McMahon vs. Bret "the Hitman" Hart, Bret Mcmahon may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
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.
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.
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.
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.
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 .
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bret Mcmahon with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.