Bluefin Labs: The Acquisition by Twitter SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Bluefin Labs: The Acquisition by Twitter
What is the value of Bluefin Labs's social listening data to Twitter? Acquired by Twitter in 2013, Bluefin had built a system that gathered millions of online comments in an effort to develop new metrics for TV programs and brand advertising. With data from Twitter and other social sites, expressions, not just impressions, could now be aggregated, measured, and used to calibrate brand performance and to sell media time. A second objective of the case is to understand the implications of social TV viewing, the audience engagement that results when people watch television with a smartphone or tablet in hand, participating in a virtual community of real-time TV watchers.
Swot Analysis of "Bluefin Labs: The Acquisition by Twitter" written by John Deighton, Leora Kornfeld includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bluefin Twitter facing as an external strategic factors. Some of the topics covered in Bluefin Labs: The Acquisition by Twitter case study are - Strategic Management Strategies, Disruptive innovation, Internet, IT, Marketing, Mergers & acquisitions, Networking, Performance measurement, Social responsibility and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Bluefin Labs: The Acquisition by Twitter casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, technology disruption, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Bluefin Labs: The Acquisition by Twitter
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bluefin Labs: The Acquisition by Twitter case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bluefin Twitter, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bluefin Twitter 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 Bluefin Labs: The Acquisition by Twitter can be done for the following purposes –
1. Strategic planning using facts provided in Bluefin Labs: The Acquisition by Twitter case study
2. Improving business portfolio management of Bluefin Twitter
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 Bluefin Twitter
Strengths Bluefin Labs: The Acquisition by Twitter | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bluefin Twitter in Bluefin Labs: The Acquisition by Twitter Harvard Business Review case study are -
Diverse revenue streams
– Bluefin Twitter is present in almost all the verticals within the industry. This has provided firm in Bluefin Labs: The Acquisition by Twitter 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Bluefin Labs: The Acquisition by Twitter firm has clearly differentiated products in the market place. This has enabled Bluefin Twitter to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Bluefin Twitter to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Bluefin Labs: The Acquisition by Twitter 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 Bluefin Twitter in the sector have low bargaining power. Bluefin Labs: The Acquisition by Twitter has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bluefin Twitter to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Bluefin Twitter is one of the leading recruiters in the industry. Managers in the Bluefin Labs: The Acquisition by Twitter are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Bluefin Twitter digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bluefin Twitter 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.
High brand equity
– Bluefin Twitter has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bluefin Twitter to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Bluefin Twitter is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Bluefin Twitter 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.
Highly skilled collaborators
– Bluefin Twitter 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 Bluefin Labs: The Acquisition by Twitter HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Bluefin Twitter 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 Bluefin Labs: The Acquisition by Twitter - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Bluefin Twitter is one of the most innovative firm in sector. Manager in Bluefin Labs: The Acquisition by Twitter Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Bluefin Labs: The Acquisition by Twitter | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bluefin Labs: The Acquisition by Twitter are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bluefin Twitter is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Bluefin Labs: The Acquisition by Twitter can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Bluefin Twitter supply chain. Even after few cautionary changes mentioned in the HBR case study - Bluefin Labs: The Acquisition by Twitter, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bluefin Twitter vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Bluefin Twitter has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Bluefin Labs: The Acquisition by Twitter, it seems that the employees of Bluefin Twitter 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, John Deighton, Leora Kornfeld suggests that, Bluefin Twitter 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 Bluefin Twitter is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Bluefin Twitter needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bluefin Twitter to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Bluefin Labs: The Acquisition by Twitter, in the dynamic environment Bluefin Twitter has struggled to respond to the nimble upstart competition. Bluefin Twitter has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Bluefin Twitter 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.
Products dominated business model
– Even though Bluefin Twitter 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 - Bluefin Labs: The Acquisition by Twitter should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Bluefin Twitter 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. Bluefin Twitter 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Bluefin Twitter 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.
Opportunities Bluefin Labs: The Acquisition by Twitter | 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 Bluefin Labs: The Acquisition by Twitter are -
Using analytics as competitive advantage
– Bluefin Twitter 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 Bluefin Labs: The Acquisition by Twitter - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bluefin Twitter to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Bluefin Twitter has opened avenues for new revenue streams for the organization in the industry. This can help Bluefin Twitter to build a more holistic ecosystem as suggested in the Bluefin Labs: The Acquisition by Twitter case study. Bluefin Twitter can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bluefin Twitter can use these opportunities to build new business models that can help the communities that Bluefin Twitter operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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 Bluefin Twitter 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.
Developing new processes and practices
– Bluefin Twitter 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.
Learning at scale
– Online learning technologies has now opened space for Bluefin Twitter 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.
Manufacturing automation
– Bluefin Twitter 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bluefin Twitter can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Bluefin Twitter can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bluefin Twitter 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bluefin Twitter 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.
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. Bluefin Twitter 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. Bluefin Twitter 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.
Buying journey improvements
– Bluefin Twitter can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Bluefin Labs: The Acquisition by Twitter 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.
Threats Bluefin Labs: The Acquisition by Twitter External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bluefin Labs: The Acquisition by Twitter are -
Shortening product life cycle
– it is one of the major threat that Bluefin Twitter is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Bluefin Twitter needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Bluefin Twitter in the Sales & Marketing sector and impact the bottomline of the organization.
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. Bluefin Twitter can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Bluefin Twitter 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bluefin Twitter 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 Bluefin Labs: The Acquisition by Twitter .
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 Bluefin Twitter.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Bluefin Labs: The Acquisition by Twitter, Bluefin Twitter 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 .
Regulatory challenges
– Bluefin Twitter 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.
Environmental challenges
– Bluefin Twitter 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. Bluefin Twitter can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bluefin Twitter 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Weighted SWOT Analysis of Bluefin Labs: The Acquisition by Twitter 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 Bluefin Labs: The Acquisition by Twitter 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 Bluefin Labs: The Acquisition by Twitter 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 Bluefin Labs: The Acquisition by Twitter 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 Bluefin Labs: The Acquisition by Twitter 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 Bluefin Twitter needs to make to build a sustainable competitive advantage.
