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 - – digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels,
increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
Successful track record of launching new products
– Saatchi Campaign has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Saatchi Campaign 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.
Cross disciplinary teams
– Horizontal connected teams at the Saatchi Campaign 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.
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.
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.
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.
Superior customer experience
– The customer experience strategy of Saatchi Campaign in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
Low bargaining power of suppliers
– Suppliers of Saatchi Campaign in the sector have low bargaining power. New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Saatchi Campaign to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Sales & Marketing industry
– New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign firm has clearly differentiated products in the market place. This has enabled Saatchi Campaign to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Saatchi Campaign to invest into research and development (R&D) and innovation.
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.
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.
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 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.
Increasing silos among functional specialists
– The organizational structure of Saatchi Campaign is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Saatchi Campaign needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Saatchi Campaign to focus more on services rather than just following the product oriented approach.
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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign, it seems that the employees of Saatchi Campaign don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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.
Slow decision making process
– As mentioned earlier in the report, Saatchi Campaign 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. Saatchi Campaign 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.
No frontier risks strategy
– After analyzing the HBR case study New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Saatchi Campaign is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign, is just above the industry average. Saatchi Campaign 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.
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.
Learning at scale
– Online learning technologies has now opened space for Saatchi Campaign 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.
Using analytics as competitive advantage
– Saatchi Campaign 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 New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Saatchi Campaign to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
Leveraging digital technologies
– Saatchi Campaign 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.
Buying journey improvements
– Saatchi Campaign can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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.
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.
Building a culture of innovation
– managers at Saatchi Campaign 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 Sales & Marketing segment.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Saatchi Campaign is facing challenges because of the dominance of functional experts in the organization. New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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.
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.
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 -
Increasing wage structure of Saatchi Campaign
– 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 Saatchi Campaign.
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.
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.
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 Saatchi Campaign in the Sales & Marketing sector and impact the bottomline of the organization.
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.
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.
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 .
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. Saatchi Campaign 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.
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.
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.
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.
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. Saatchi Campaign needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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.
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.
