General De La Rey and the Blue Bulls SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of General De La Rey and the Blue Bulls
The Blue Bulls rugby team enjoyed a fanatical fan base and had been performing well in local and international competitions recently. As a leading South African rugby franchise, the Blue Bulls faced a social and political environment that emphasized racial transformation. An up-and-coming Afrikaans musician had become best-seller with his De La Rey song, which was about a Boer soldier who calls on General De La Rey to lead the Afrikaner people to victory in the second South Africa War between the Boer Republic and colonial Britain. Given the emotive theme of the song and the response by some to view it as a reassertion of Afrikaner nationalism, the song had attracted significant media coverage and controversy. As part of the entertainment at the Vodacom Super 14 rugby game between Western Force and the Vodacom Blue Bulls, De La Rey was played over the stadium loudspeakers. This delighted most of the mainly White Afrikaans spectators. As the evening progressed, the acting head of the Blue Bulls Company, the organization that managed the Blue Bulls rugby team and the Loftus Versveld stadium, received a number of complaints from supporters about the playing of the De La Rey song and thus decided to remove the song from the official stadium playlist. By Monday morning, a media frenzy had erupted about this decision and the acting head was faced with a number of options of how to respond. The case is written for a first-year MBA module and is designed to explore the following themes: 1) race, identity and language as consumer behavior variables 2) spectator, supporter and consumer processes within sports marketing 3) sports brand development and sponsorship relationships.
Swot Analysis of "General De La Rey and the Blue Bulls" written by Michael Goldman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bulls Rey facing as an external strategic factors. Some of the topics covered in General De La Rey and the Blue Bulls case study are - Strategic Management Strategies, Customers, Government, Risk management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the General De La Rey and the Blue Bulls casestudy better are - – wage bills are increasing, increasing household debt because of falling income levels, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs,
competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, etc
Introduction to SWOT Analysis of General De La Rey and the Blue Bulls
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in General De La Rey and the Blue Bulls case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bulls Rey, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bulls Rey 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 General De La Rey and the Blue Bulls can be done for the following purposes –
1. Strategic planning using facts provided in General De La Rey and the Blue Bulls case study
2. Improving business portfolio management of Bulls Rey
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 Bulls Rey
Strengths General De La Rey and the Blue Bulls | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bulls Rey in General De La Rey and the Blue Bulls Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Bulls Rey in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Bulls Rey digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bulls Rey 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– General De La Rey and the Blue Bulls firm has clearly differentiated products in the market place. This has enabled Bulls Rey to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Bulls Rey to invest into research and development (R&D) and innovation.
Innovation driven organization
– Bulls Rey is one of the most innovative firm in sector. Manager in General De La Rey and the Blue Bulls Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Bulls Rey 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 Michael Goldman 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.
Organizational Resilience of Bulls Rey
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bulls Rey does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Bulls Rey has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bulls Rey 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.
Highly skilled collaborators
– Bulls Rey 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 General De La Rey and the Blue Bulls HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Bulls Rey in the sector have low bargaining power. General De La Rey and the Blue Bulls has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bulls Rey to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Bulls Rey is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Bulls Rey 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 Bulls Rey is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in General De La Rey and the Blue Bulls Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Leadership & Managing People field
– Bulls Rey 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 Bulls Rey in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses General De La Rey and the Blue Bulls | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of General De La Rey and the Blue Bulls are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study General De La Rey and the Blue Bulls, is just above the industry average. Bulls Rey 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.
Increasing silos among functional specialists
– The organizational structure of Bulls Rey is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Bulls Rey needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bulls Rey to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Bulls Rey products
– To increase the profitability and margins on the products, Bulls Rey needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As General De La Rey and the Blue Bulls HBR case study mentions - Bulls Rey 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.
Low market penetration in new markets
– Outside its home market of Bulls Rey, firm in the HBR case study General De La Rey and the Blue Bulls needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bulls Rey is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study General De La Rey and the Blue Bulls can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Bulls Rey 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.
Need for greater diversity
– Bulls Rey has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High cash cycle compare to competitors
Bulls Rey 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.
Slow decision making process
– As mentioned earlier in the report, Bulls Rey 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. Bulls Rey 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study General De La Rey and the Blue Bulls, in the dynamic environment Bulls Rey has struggled to respond to the nimble upstart competition. Bulls Rey has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities General De La Rey and the Blue Bulls | 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 General De La Rey and the Blue Bulls are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bulls Rey 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.
Better consumer reach
– The expansion of the 5G network will help Bulls Rey to increase its market reach. Bulls Rey 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.
Building a culture of innovation
– managers at Bulls Rey 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bulls Rey 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, General De La Rey and the Blue Bulls, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Bulls Rey 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 General De La Rey and the Blue Bulls - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bulls Rey to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Bulls Rey can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. General De La Rey and the Blue Bulls 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 Bulls Rey 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.
Leveraging digital technologies
– Bulls Rey 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bulls Rey 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 Bulls Rey to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Bulls Rey 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.
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. Bulls Rey 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. Bulls Rey 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bulls Rey can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Bulls Rey 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.
Threats General De La Rey and the Blue Bulls External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study General De La Rey and the Blue Bulls are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bulls Rey 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 General De La Rey and the Blue Bulls .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study General De La Rey and the Blue Bulls, Bulls Rey 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 .
High dependence on third party suppliers
– Bulls Rey 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.
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 Bulls Rey business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Bulls Rey 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. Bulls Rey 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. Bulls Rey needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Bulls Rey 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bulls Rey 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.
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. Bulls Rey can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Bulls Rey has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Bulls Rey 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.
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 Bulls Rey in the Leadership & Managing People sector and impact the bottomline 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.
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 Bulls Rey.
Weighted SWOT Analysis of General De La Rey and the Blue Bulls 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 General De La Rey and the Blue Bulls 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 General De La Rey and the Blue Bulls 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 General De La Rey and the Blue Bulls 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 General De La Rey and the Blue Bulls 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 Bulls Rey needs to make to build a sustainable competitive advantage.