New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign
Describes the background leading to the development of an advertising campaign to help prevention of AIDS in New York City. The three television networks, however, for various reasons reject the campaign, to the dismay of Saatchi & Saatchi executives.
Swot Analysis of "New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign" written by V. Kasturi Rangan, Sohel Karim includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Saatchi Campaign facing as an external strategic factors. Some of the topics covered in New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign case study are - Strategic Management Strategies, Marketing, Social enterprise and Sales & Marketing.
Some of the macro environment factors that can be used to understand the New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, wage bills are increasing, technology disruption, increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing commodity prices,
digital marketing is dominated by two big players Facebook and Google, increasing energy prices, etc
Introduction to SWOT Analysis of New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Saatchi Campaign, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Saatchi Campaign 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 New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign can be done for the following purposes –
1. Strategic planning using facts provided in New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign case study
2. Improving business portfolio management of Saatchi Campaign
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Saatchi Campaign
Strengths New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Saatchi Campaign in New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign Harvard Business Review case study are -
High brand equity
– Saatchi Campaign has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Saatchi Campaign to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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
– Saatchi Campaign is one of the leading recruiters in the industry. Managers in the New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Saatchi Campaign 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 New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Saatchi Campaign has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Saatchi Campaign digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Saatchi Campaign 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.
Organizational Resilience of Saatchi Campaign
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Saatchi Campaign does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Saatchi Campaign 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.
Innovation driven organization
– Saatchi Campaign is one of the most innovative firm in sector. Manager in New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Saatchi Campaign 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 Saatchi Campaign is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Saatchi Campaign is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Saatchi Campaign 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 New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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 Saatchi Campaign has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign, in the dynamic environment Saatchi Campaign has struggled to respond to the nimble upstart competition. Saatchi Campaign has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Saatchi Campaign, firm in the HBR case study New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Saatchi Campaign 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.
Need for greater diversity
– Saatchi Campaign 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 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 Saatchi Campaign supply chain. Even after few cautionary changes mentioned in the HBR case study - New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Saatchi Campaign vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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 Saatchi Campaign 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, V. Kasturi Rangan, Sohel Karim suggests that, Saatchi Campaign 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
Saatchi Campaign 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.
Interest costs
– Compare to the competition, Saatchi Campaign 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.
Capital Spending Reduction
– Even during the low interest decade, Saatchi Campaign has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Opportunities New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign | 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 New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Saatchi Campaign can use these opportunities to build new business models that can help the communities that Saatchi Campaign operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Saatchi Campaign 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.
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 Saatchi Campaign 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Saatchi Campaign can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Saatchi Campaign 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Saatchi Campaign in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Saatchi Campaign 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 Saatchi Campaign to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Saatchi Campaign can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Saatchi Campaign 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, New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Saatchi Campaign 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. Saatchi Campaign 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.
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. Saatchi Campaign can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Saatchi Campaign in the consumer business. Now Saatchi Campaign can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Saatchi Campaign can develop new processes and procedures in Sales & Marketing 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.
Threats New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign are -
Technology acceleration in Forth Industrial Revolution
– Saatchi Campaign has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Saatchi Campaign needs to keep up with the evolution of technology in the Sales & Marketing 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 Saatchi Campaign.
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.
High dependence on third party suppliers
– Saatchi Campaign 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign, Saatchi Campaign may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
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 Saatchi Campaign business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Saatchi Campaign 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 Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Saatchi Campaign can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Saatchi Campaign 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 New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign .
Regulatory challenges
– Saatchi Campaign 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 Sales & Marketing industry regulations.
Consumer confidence and its impact on Saatchi Campaign 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.
Environmental challenges
– Saatchi Campaign 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. Saatchi Campaign can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Stagnating economy with rate increase
– Saatchi Campaign 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.
Weighted SWOT Analysis of New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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 New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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 New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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 New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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 New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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 Saatchi Campaign needs to make to build a sustainable competitive advantage.