WD-40 Company: The Squeak, Smell, and Dirt Business (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of WD-40 Company: The Squeak, Smell, and Dirt Business (A)
In the fall of 1999 Garry Ridge, the newly appointed CEO of WD-40 Company, wanted to rejuvenate the company and stimulate its employees to look beyond the firm's relatively narrow focus of the last 43 years. The very nature of WD-40 Company's success in capturing the market had created its own limited growth opportunities. The A case describes the company's one-product business success, and Ridge's background. The B case reveals some of the challenges Ridge faced in implementing change. The B case tells how the new CEO helped WD-40 company achieve growth in both new products and markets through related acquisitions. Despite these purchases, though, the company's earnings failed to climb in the years between 1998 and 2001. Ridge concluded that he needed to do more than just buy more companies, so he framed a model of strong leadership and "learning theory" that he thought would enable the company outsmart its competitors. He built a framework that was demanding, yet forgiving, when individuals fell short. Ridge held employees responsible for their results, but he encouraged everyone to acknowledge mistakes and learn from them. The company's financial results suggest success for his leadership model. This case set lends instructors a valuable tool to conduct conversations in the classroom about leadership and leading strategic change.
Authors :: Gerry Yemen, James G. Clawson, Marcia Conner
Swot Analysis of "WD-40 Company: The Squeak, Smell, and Dirt Business (A)" written by Gerry Yemen, James G. Clawson, Marcia Conner includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wd Ridge facing as an external strategic factors. Some of the topics covered in WD-40 Company: The Squeak, Smell, and Dirt Business (A) case study are - Strategic Management Strategies, Knowledge management, Marketing, Organizational culture and Organizational Development.
Some of the macro environment factors that can be used to understand the WD-40 Company: The Squeak, Smell, and Dirt Business (A) casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, there is increasing trade war between United States & China, increasing commodity prices, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings,
technology disruption, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of WD-40 Company: The Squeak, Smell, and Dirt Business (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in WD-40 Company: The Squeak, Smell, and Dirt Business (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wd Ridge, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wd Ridge 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 WD-40 Company: The Squeak, Smell, and Dirt Business (A) can be done for the following purposes –
1. Strategic planning using facts provided in WD-40 Company: The Squeak, Smell, and Dirt Business (A) case study
2. Improving business portfolio management of Wd Ridge
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 Wd Ridge
Strengths WD-40 Company: The Squeak, Smell, and Dirt Business (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wd Ridge in WD-40 Company: The Squeak, Smell, and Dirt Business (A) Harvard Business Review case study are -
Organizational Resilience of Wd Ridge
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wd Ridge does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Wd Ridge 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 WD-40 Company: The Squeak, Smell, and Dirt Business (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Wd Ridge is one of the most innovative firm in sector. Manager in WD-40 Company: The Squeak, Smell, and Dirt Business (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Wd Ridge 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.
High brand equity
– Wd Ridge has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wd Ridge to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the WD-40 Company: The Squeak, Smell, and Dirt Business (A) 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.
Ability to recruit top talent
– Wd Ridge is one of the leading recruiters in the industry. Managers in the WD-40 Company: The Squeak, Smell, and Dirt Business (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Wd Ridge 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 Organizational Development industry
– WD-40 Company: The Squeak, Smell, and Dirt Business (A) firm has clearly differentiated products in the market place. This has enabled Wd Ridge to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Wd Ridge to invest into research and development (R&D) and innovation.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Wd Ridge digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wd Ridge 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.
Cross disciplinary teams
– Horizontal connected teams at the Wd Ridge 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
– Wd Ridge is present in almost all the verticals within the industry. This has provided firm in WD-40 Company: The Squeak, Smell, and Dirt Business (A) 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.
Weaknesses WD-40 Company: The Squeak, Smell, and Dirt Business (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of WD-40 Company: The Squeak, Smell, and Dirt Business (A) are -
High cash cycle compare to competitors
Wd Ridge 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Wd Ridge 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study WD-40 Company: The Squeak, Smell, and Dirt Business (A), is just above the industry average. Wd Ridge needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to strategic competitive environment developments
– As WD-40 Company: The Squeak, Smell, and Dirt Business (A) HBR case study mentions - Wd Ridge 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Gerry Yemen, James G. Clawson, Marcia Conner suggests that, Wd Ridge 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 operating costs
– Compare to the competitors, firm in the HBR case study WD-40 Company: The Squeak, Smell, and Dirt Business (A) 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 Wd Ridge 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Wd Ridge 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. Wd Ridge 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the WD-40 Company: The Squeak, Smell, and Dirt Business (A) 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 Wd Ridge has relatively successful track record of launching new products.
Need for greater diversity
– Wd Ridge 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wd Ridge is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study WD-40 Company: The Squeak, Smell, and Dirt Business (A) 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 Wd Ridge 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.
Opportunities WD-40 Company: The Squeak, Smell, and Dirt Business (A) | 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 WD-40 Company: The Squeak, Smell, and Dirt Business (A) are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Wd Ridge 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 Wd Ridge 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 Wd Ridge to hire the very best people irrespective of their geographical location.
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. Wd Ridge can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wd Ridge can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Wd Ridge can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wd Ridge is facing challenges because of the dominance of functional experts in the organization. WD-40 Company: The Squeak, Smell, and Dirt Business (A) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wd Ridge can use these opportunities to build new business models that can help the communities that Wd Ridge operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
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 Wd Ridge in the consumer business. Now Wd Ridge can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Wd Ridge 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Wd Ridge in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Wd Ridge 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, WD-40 Company: The Squeak, Smell, and Dirt Business (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Wd Ridge 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 Organizational Development segment.
Better consumer reach
– The expansion of the 5G network will help Wd Ridge to increase its market reach. Wd Ridge 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.
Threats WD-40 Company: The Squeak, Smell, and Dirt Business (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study WD-40 Company: The Squeak, Smell, and Dirt Business (A) are -
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wd Ridge 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 WD-40 Company: The Squeak, Smell, and Dirt Business (A) .
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 Wd Ridge.
Technology acceleration in Forth Industrial Revolution
– Wd Ridge has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Wd Ridge 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.
Increasing wage structure of Wd Ridge
– 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 Wd Ridge.
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. Wd Ridge needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
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 Wd Ridge in the Organizational Development sector and impact the bottomline of the organization.
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 Wd Ridge business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Wd Ridge 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Wd Ridge with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Wd Ridge 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Wd Ridge 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.
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 WD-40 Company: The Squeak, Smell, and Dirt Business (A) 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 WD-40 Company: The Squeak, Smell, and Dirt Business (A) 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 WD-40 Company: The Squeak, Smell, and Dirt Business (A) 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 WD-40 Company: The Squeak, Smell, and Dirt Business (A) 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 WD-40 Company: The Squeak, Smell, and Dirt Business (A) 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 Wd Ridge needs to make to build a sustainable competitive advantage.