Case Study Description of Spectrum Brands, Inc.--The Sales Force Dilemma
In 2005, the vice president of sales and marketing for the Canadian division of Spectrum Brands Inc. must determine his next steps regarding the structure of his sales force. Spectrum Brands (Spectrum), a global consumer products company formerly known as Rayovac Corporation, had made a number of acquisitions to diversify and expand its product and brand portfolio. With these changes, Spectrum had become a leading supplier of consumer batteries, lawn and garden care products, specialty pet supplies, and shaving and grooming products. The vice president of sales and marketing was charged with the task of creating a national sales force from the teams of the newly merged companies. Knowing the importance of the sales function to each of these companies, he wanted to ensure, despite the differences among the diverse groups, that he still maintained a team which would effectively and efficiently continue to increase the sales of each business unit.
Swot Analysis of "Spectrum Brands, Inc.--The Sales Force Dilemma" written by Donald Barclay, Joe Falconi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Spectrum Sales facing as an external strategic factors. Some of the topics covered in Spectrum Brands, Inc.--The Sales Force Dilemma case study are - Strategic Management Strategies, Mergers & acquisitions, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Spectrum Brands, Inc.--The Sales Force Dilemma casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, wage bills are increasing, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs,
supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Spectrum Brands, Inc.--The Sales Force Dilemma
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Spectrum Brands, Inc.--The Sales Force Dilemma case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Spectrum Sales, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Spectrum Sales 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 Spectrum Brands, Inc.--The Sales Force Dilemma can be done for the following purposes –
1. Strategic planning using facts provided in Spectrum Brands, Inc.--The Sales Force Dilemma case study
2. Improving business portfolio management of Spectrum Sales
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 Spectrum Sales
Strengths Spectrum Brands, Inc.--The Sales Force Dilemma | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Spectrum Sales in Spectrum Brands, Inc.--The Sales Force Dilemma Harvard Business Review case study are -
Training and development
– Spectrum Sales has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Spectrum Brands, Inc.--The Sales Force Dilemma Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Organizational Resilience of Spectrum Sales
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Spectrum Sales does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Spectrum Sales 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 Spectrum Sales is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Spectrum Brands, Inc.--The Sales Force Dilemma Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Spectrum Sales is present in almost all the verticals within the industry. This has provided firm in Spectrum Brands, Inc.--The Sales Force Dilemma 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.
Analytics focus
– Spectrum Sales is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Donald Barclay, Joe Falconi can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Superior customer experience
– The customer experience strategy of Spectrum Sales in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Spectrum Sales in the sector have low bargaining power. Spectrum Brands, Inc.--The Sales Force Dilemma has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Spectrum Sales to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Spectrum Sales has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Spectrum Sales to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Spectrum Sales is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Spectrum Sales has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Spectrum Sales 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Spectrum Brands, Inc.--The Sales Force Dilemma firm has clearly differentiated products in the market place. This has enabled Spectrum Sales to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Spectrum Sales to invest into research and development (R&D) and innovation.
Ability to lead change in Sales & Marketing field
– Spectrum Sales 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 Spectrum Sales in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Spectrum Brands, Inc.--The Sales Force Dilemma | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Spectrum Brands, Inc.--The Sales Force Dilemma are -
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 Spectrum Sales supply chain. Even after few cautionary changes mentioned in the HBR case study - Spectrum Brands, Inc.--The Sales Force Dilemma, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Spectrum Sales vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Spectrum Sales, firm in the HBR case study Spectrum Brands, Inc.--The Sales Force Dilemma needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Spectrum Sales 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 - Spectrum Brands, Inc.--The Sales Force Dilemma should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Spectrum Brands, Inc.--The Sales Force Dilemma 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 Spectrum Brands, Inc.--The Sales Force Dilemma can leverage the sales team experience to cultivate customer relationships as Spectrum Sales is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Spectrum Sales 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.
Slow decision making process
– As mentioned earlier in the report, Spectrum Sales 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. Spectrum Sales 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Spectrum Sales is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Spectrum Brands, Inc.--The Sales Force Dilemma can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Spectrum Sales 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Spectrum Brands, Inc.--The Sales Force Dilemma, it seems that the employees of Spectrum Sales 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.
Need for greater diversity
– Spectrum Sales 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.
No frontier risks strategy
– After analyzing the HBR case study Spectrum Brands, Inc.--The Sales Force Dilemma, 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.
Opportunities Spectrum Brands, Inc.--The Sales Force Dilemma | 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 Spectrum Brands, Inc.--The Sales Force Dilemma are -
Manufacturing automation
– Spectrum Sales 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.
Loyalty marketing
– Spectrum Sales 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.
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 Spectrum Sales 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.
Learning at scale
– Online learning technologies has now opened space for Spectrum Sales 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Spectrum Sales 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 Spectrum Sales to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Spectrum Sales 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.
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 Spectrum Sales in the consumer business. Now Spectrum Sales can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Spectrum Sales has opened avenues for new revenue streams for the organization in the industry. This can help Spectrum Sales to build a more holistic ecosystem as suggested in the Spectrum Brands, Inc.--The Sales Force Dilemma case study. Spectrum Sales can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Spectrum Sales can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Spectrum Brands, Inc.--The Sales Force Dilemma 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Spectrum Sales 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.
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. Spectrum Sales 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. Spectrum Sales 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Spectrum Sales can use these opportunities to build new business models that can help the communities that Spectrum Sales operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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. Spectrum Sales can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Spectrum Brands, Inc.--The Sales Force Dilemma External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Spectrum Brands, Inc.--The Sales Force Dilemma are -
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 Spectrum Sales in the Sales & Marketing sector and impact the bottomline of the organization.
Environmental challenges
– Spectrum Sales 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. Spectrum Sales can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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 Spectrum Sales.
High dependence on third party suppliers
– Spectrum Sales 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.
Increasing wage structure of Spectrum Sales
– 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 Spectrum Sales.
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. Spectrum Sales 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Spectrum Sales 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.
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.
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 Spectrum Sales business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Spectrum Brands, Inc.--The Sales Force Dilemma, Spectrum Sales 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 .
Stagnating economy with rate increase
– Spectrum Sales 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. Spectrum Sales needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Spectrum Brands, Inc.--The Sales Force Dilemma 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 Spectrum Brands, Inc.--The Sales Force Dilemma 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 Spectrum Brands, Inc.--The Sales Force Dilemma 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 Spectrum Brands, Inc.--The Sales Force Dilemma 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 Spectrum Brands, Inc.--The Sales Force Dilemma 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 Spectrum Sales needs to make to build a sustainable competitive advantage.