Publicis Groupe (A): Leading Creative Acquisitions SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Publicis Groupe (A): Leading Creative Acquisitions
The CEO of a French-based advertising agency network led a series of high-profile acquisitions that created the world's 4th largest global communications company, after a failed strategic alliance taught him lessons about leadership and business relationships.
Swot Analysis of "Publicis Groupe (A): Leading Creative Acquisitions" written by Rosabeth Moss Kanter, Ryan Raffaelli includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Acquisitions Publicis facing as an external strategic factors. Some of the topics covered in Publicis Groupe (A): Leading Creative Acquisitions case study are - Strategic Management Strategies, Creativity, Joint ventures, Leadership, Mergers & acquisitions, Organizational culture, Succession planning and Organizational Development.
Some of the macro environment factors that can be used to understand the Publicis Groupe (A): Leading Creative Acquisitions casestudy better are - – cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions,
there is backlash against globalization, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Publicis Groupe (A): Leading Creative Acquisitions
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Publicis Groupe (A): Leading Creative Acquisitions case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Acquisitions Publicis, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Acquisitions Publicis 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 Publicis Groupe (A): Leading Creative Acquisitions can be done for the following purposes –
1. Strategic planning using facts provided in Publicis Groupe (A): Leading Creative Acquisitions case study
2. Improving business portfolio management of Acquisitions Publicis
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Acquisitions Publicis
Strengths Publicis Groupe (A): Leading Creative Acquisitions | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Acquisitions Publicis in Publicis Groupe (A): Leading Creative Acquisitions Harvard Business Review case study are -
Innovation driven organization
– Acquisitions Publicis is one of the most innovative firm in sector. Manager in Publicis Groupe (A): Leading Creative Acquisitions Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Organizational Development industry
– Publicis Groupe (A): Leading Creative Acquisitions firm has clearly differentiated products in the market place. This has enabled Acquisitions Publicis to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Acquisitions Publicis to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Acquisitions Publicis 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.
Diverse revenue streams
– Acquisitions Publicis is present in almost all the verticals within the industry. This has provided firm in Publicis Groupe (A): Leading Creative Acquisitions 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 Acquisitions Publicis in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Acquisitions Publicis in the sector have low bargaining power. Publicis Groupe (A): Leading Creative Acquisitions has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Acquisitions Publicis to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Acquisitions Publicis 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 Publicis Groupe (A): Leading Creative Acquisitions - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Acquisitions Publicis 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 Publicis Groupe (A): Leading Creative Acquisitions HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Acquisitions Publicis has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Publicis Groupe (A): Leading Creative Acquisitions 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.
Organizational Resilience of Acquisitions Publicis
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Acquisitions Publicis does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Acquisitions Publicis 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 Acquisitions Publicis is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Publicis Groupe (A): Leading Creative Acquisitions Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Acquisitions Publicis is one of the leading recruiters in the industry. Managers in the Publicis Groupe (A): Leading Creative Acquisitions are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Publicis Groupe (A): Leading Creative Acquisitions | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Publicis Groupe (A): Leading Creative Acquisitions are -
Low market penetration in new markets
– Outside its home market of Acquisitions Publicis, firm in the HBR case study Publicis Groupe (A): Leading Creative Acquisitions needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Publicis Groupe (A): Leading Creative Acquisitions 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 Publicis Groupe (A): Leading Creative Acquisitions can leverage the sales team experience to cultivate customer relationships as Acquisitions Publicis is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Publicis Groupe (A): Leading Creative Acquisitions has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Acquisitions Publicis 's lucrative customers.
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 Acquisitions Publicis supply chain. Even after few cautionary changes mentioned in the HBR case study - Publicis Groupe (A): Leading Creative Acquisitions, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Acquisitions Publicis vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Rosabeth Moss Kanter, Ryan Raffaelli suggests that, Acquisitions Publicis 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.
High cash cycle compare to competitors
Acquisitions Publicis 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Publicis Groupe (A): Leading Creative Acquisitions, is just above the industry average. Acquisitions Publicis 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Publicis Groupe (A): Leading Creative Acquisitions, in the dynamic environment Acquisitions Publicis has struggled to respond to the nimble upstart competition. Acquisitions Publicis has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Acquisitions Publicis 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.
Products dominated business model
– Even though Acquisitions Publicis 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 - Publicis Groupe (A): Leading Creative Acquisitions should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Acquisitions Publicis is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Publicis Groupe (A): Leading Creative Acquisitions can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Publicis Groupe (A): Leading Creative Acquisitions | 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 Publicis Groupe (A): Leading Creative Acquisitions are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Acquisitions Publicis 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 Acquisitions Publicis to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Acquisitions Publicis has opened avenues for new revenue streams for the organization in the industry. This can help Acquisitions Publicis to build a more holistic ecosystem as suggested in the Publicis Groupe (A): Leading Creative Acquisitions case study. Acquisitions Publicis can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Acquisitions Publicis can develop new processes and procedures in Organizational Development 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.
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 Acquisitions Publicis in the consumer business. Now Acquisitions Publicis can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Acquisitions Publicis to increase its market reach. Acquisitions Publicis 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.
Leveraging digital technologies
– Acquisitions Publicis 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.
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 Acquisitions Publicis 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Acquisitions Publicis 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. Acquisitions Publicis 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.
Using analytics as competitive advantage
– Acquisitions Publicis 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 Publicis Groupe (A): Leading Creative Acquisitions - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Acquisitions Publicis to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Acquisitions Publicis can use these opportunities to build new business models that can help the communities that Acquisitions Publicis operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Loyalty marketing
– Acquisitions Publicis 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.
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. Acquisitions Publicis can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Acquisitions Publicis can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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.
Threats Publicis Groupe (A): Leading Creative Acquisitions External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Publicis Groupe (A): Leading Creative Acquisitions are -
Technology acceleration in Forth Industrial Revolution
– Acquisitions Publicis has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Acquisitions Publicis needs to keep up with the evolution of technology in the Organizational Development 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.
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 Acquisitions Publicis.
Environmental challenges
– Acquisitions Publicis 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. Acquisitions Publicis can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
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.
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. Acquisitions Publicis 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Publicis Groupe (A): Leading Creative Acquisitions, Acquisitions Publicis may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
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. Acquisitions Publicis needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Acquisitions Publicis in the Organizational Development industry. The Organizational Development 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.
Regulatory challenges
– Acquisitions Publicis 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 Organizational Development industry regulations.
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 Acquisitions Publicis in the Organizational Development sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Acquisitions Publicis 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.
Shortening product life cycle
– it is one of the major threat that Acquisitions Publicis is facing in Organizational Development 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.
Weighted SWOT Analysis of Publicis Groupe (A): Leading Creative Acquisitions 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 Publicis Groupe (A): Leading Creative Acquisitions 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 Publicis Groupe (A): Leading Creative Acquisitions 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 Publicis Groupe (A): Leading Creative Acquisitions 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 Publicis Groupe (A): Leading Creative Acquisitions 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 Acquisitions Publicis needs to make to build a sustainable competitive advantage.