By 2010, TripAdvisor was the largest travel site in the world operating in 24 countries and 16 languages, with listings for 455,000 hotels, 92,000 attractions and 564,000 restaurants in over 71,000 destinations worldwide. It had over 40 million reviews from 35 million unique monthly visitors who were contributing 21 new reviews every minute. Known for its hotel reviews, TA expanded into flights, vacation rentals and international markets like China. Each of these expansion paths provided unique opportunities as well as new challenges. In August 2010, Stephen Kaufer, CEO, was debating how to prioritize his growth plans for the company.
Swot Analysis of "TripAdvisor" written by Sunil Gupta, Kerry Herman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tripadvisor Reviews facing as an external strategic factors. Some of the topics covered in TripAdvisor case study are - Strategic Management Strategies, Customers, Internet and Sales & Marketing.
Some of the macro environment factors that can be used to understand the TripAdvisor casestudy better are - – central banks are concerned over increasing inflation, increasing transportation and logistics costs, technology disruption, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, increasing energy prices,
supply chains are disrupted by pandemic , there is backlash against globalization, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TripAdvisor case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tripadvisor Reviews, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tripadvisor Reviews 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 TripAdvisor can be done for the following purposes –
1. Strategic planning using facts provided in TripAdvisor case study
2. Improving business portfolio management of Tripadvisor Reviews
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 Tripadvisor Reviews
Strengths TripAdvisor | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tripadvisor Reviews in TripAdvisor Harvard Business Review case study are -
Learning organization
- Tripadvisor Reviews 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 Tripadvisor Reviews is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in TripAdvisor Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Tripadvisor Reviews is present in almost all the verticals within the industry. This has provided firm in TripAdvisor 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Tripadvisor Reviews digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tripadvisor Reviews 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.
Training and development
– Tripadvisor Reviews has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in TripAdvisor 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 Tripadvisor Reviews
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tripadvisor Reviews does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Tripadvisor Reviews in the sector have low bargaining power. TripAdvisor has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tripadvisor Reviews to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Tripadvisor Reviews 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 TripAdvisor - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Tripadvisor Reviews is one of the leading recruiters in the industry. Managers in the TripAdvisor are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Sales & Marketing industry
– TripAdvisor firm has clearly differentiated products in the market place. This has enabled Tripadvisor Reviews to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Tripadvisor Reviews to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Tripadvisor Reviews 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 TripAdvisor HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Tripadvisor Reviews 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 Sunil Gupta, Kerry Herman 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.
Innovation driven organization
– Tripadvisor Reviews is one of the most innovative firm in sector. Manager in TripAdvisor Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses TripAdvisor | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TripAdvisor are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study TripAdvisor, is just above the industry average. Tripadvisor Reviews 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.
Increasing silos among functional specialists
– The organizational structure of Tripadvisor Reviews is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Tripadvisor Reviews needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tripadvisor Reviews to focus more on services rather than just following the product oriented approach.
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 Tripadvisor Reviews supply chain. Even after few cautionary changes mentioned in the HBR case study - TripAdvisor, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tripadvisor Reviews vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study TripAdvisor, it seems that the employees of Tripadvisor Reviews 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, Tripadvisor Reviews 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Tripadvisor Reviews 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the TripAdvisor HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Tripadvisor Reviews has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Sunil Gupta, Kerry Herman suggests that, Tripadvisor Reviews 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.
Skills based hiring
– The stress on hiring functional specialists at Tripadvisor Reviews 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.
Aligning sales with marketing
– It come across in the case study TripAdvisor 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 TripAdvisor can leverage the sales team experience to cultivate customer relationships as Tripadvisor Reviews is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Tripadvisor Reviews 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. Tripadvisor Reviews 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.
Opportunities TripAdvisor | 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 TripAdvisor are -
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. Tripadvisor Reviews 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. Tripadvisor Reviews 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, Tripadvisor Reviews can use these opportunities to build new business models that can help the communities that Tripadvisor Reviews operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Loyalty marketing
– Tripadvisor Reviews 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.
Better consumer reach
– The expansion of the 5G network will help Tripadvisor Reviews to increase its market reach. Tripadvisor Reviews will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tripadvisor Reviews can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Tripadvisor Reviews can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tripadvisor Reviews 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.
Creating value in data economy
– The success of analytics program of Tripadvisor Reviews has opened avenues for new revenue streams for the organization in the industry. This can help Tripadvisor Reviews to build a more holistic ecosystem as suggested in the TripAdvisor case study. Tripadvisor Reviews can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tripadvisor Reviews is facing challenges because of the dominance of functional experts in the organization. TripAdvisor 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.
Building a culture of innovation
– managers at Tripadvisor Reviews 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 Tripadvisor Reviews 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tripadvisor Reviews 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 Tripadvisor Reviews to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Tripadvisor Reviews can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Threats TripAdvisor External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TripAdvisor are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study TripAdvisor, Tripadvisor Reviews 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 .
Increasing wage structure of Tripadvisor Reviews
– 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 Tripadvisor Reviews.
High dependence on third party suppliers
– Tripadvisor Reviews 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.
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. Tripadvisor Reviews can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Tripadvisor Reviews in the Sales & Marketing sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Tripadvisor Reviews has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Tripadvisor Reviews 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.
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 Tripadvisor Reviews business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Tripadvisor Reviews 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.
Regulatory challenges
– Tripadvisor Reviews needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Consumer confidence and its impact on Tripadvisor Reviews 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.
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 Tripadvisor Reviews.
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. Tripadvisor Reviews needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of TripAdvisor 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 TripAdvisor 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 TripAdvisor 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 TripAdvisor 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 TripAdvisor 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 Tripadvisor Reviews needs to make to build a sustainable competitive advantage.
