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 - – wage bills are increasing, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies,
there is backlash against globalization, increasing government debt because of Covid-19 spendings, 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 -
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.
Ability to lead change in Sales & Marketing field
– Saatchi Campaign is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Saatchi Campaign in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
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.
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.
Diverse revenue streams
– Saatchi Campaign is present in almost all the verticals within the industry. This has provided firm in New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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.
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
Slow to strategic competitive environment developments
– As New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign HBR case study mentions - Saatchi Campaign 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.
Aligning sales with marketing
– It come across in the case study New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign 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 New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign can leverage the sales team experience to cultivate customer relationships as Saatchi Campaign is planning to shift buying processes online.
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.
Products dominated business model
– Even though Saatchi Campaign 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 - New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign should strive to include more intangible value offerings along with its core products and services.
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 -
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.
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.
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.
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.
Manufacturing automation
– Saatchi Campaign can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
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.
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.
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.
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.
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.
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.
Creating value in data economy
– The success of analytics program of Saatchi Campaign has opened avenues for new revenue streams for the organization in the industry. This can help Saatchi Campaign to build a more holistic ecosystem as suggested in the New York Against AIDS (A): The Saatchi & Saatchi Compton Advertising Campaign case study. Saatchi Campaign can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 -
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.
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.
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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Saatchi Campaign in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Easy access to finance
– Easy access to finance in 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.
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.
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.
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.
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.
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.
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.
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.