Business Systems Group and the Triathlon Sponsorship Question SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Business Systems Group and the Triathlon Sponsorship Question
In December 2012, the CEO of the professional services company Business Systems Group (BSG) called his management team together to evaluate the firm's continued sponsorship of the BSG Triathlon Series. The previous five years of the sponsorship were considered a worthwhile investment by the business, although the relationship with Triathlon South Africa (TSA) was becoming increasingly strained. The case charts the growth of BSG's business in South Africa and the United Kingdom, as well as the evolution of the sponsorship and relationship with TSA. The decisions facing BSG were whether to renew the sponsorship and build towards the Rio Olympics in 2016, continue with the BSG Triathlon Series without TSA sanction or exit the firm's involvement in the sport. Author Michael Goldman is affiliated with the University of San Francisco.
Authors :: Michael Goldman, Jennifer Lindsey-Renton
Swot Analysis of "Business Systems Group and the Triathlon Sponsorship Question" written by Michael Goldman, Jennifer Lindsey-Renton includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bsg Triathlon facing as an external strategic factors. Some of the topics covered in Business Systems Group and the Triathlon Sponsorship Question case study are - Strategic Management Strategies, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Business Systems Group and the Triathlon Sponsorship Question casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, there is backlash against globalization, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices,
competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Business Systems Group and the Triathlon Sponsorship Question
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Business Systems Group and the Triathlon Sponsorship Question case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bsg Triathlon, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bsg Triathlon 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 Business Systems Group and the Triathlon Sponsorship Question can be done for the following purposes –
1. Strategic planning using facts provided in Business Systems Group and the Triathlon Sponsorship Question case study
2. Improving business portfolio management of Bsg Triathlon
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 Bsg Triathlon
Strengths Business Systems Group and the Triathlon Sponsorship Question | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bsg Triathlon in Business Systems Group and the Triathlon Sponsorship Question Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Bsg Triathlon in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Bsg Triathlon digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bsg Triathlon 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.
Ability to recruit top talent
– Bsg Triathlon is one of the leading recruiters in the industry. Managers in the Business Systems Group and the Triathlon Sponsorship Question are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Bsg Triathlon has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bsg Triathlon 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.
High brand equity
– Bsg Triathlon has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bsg Triathlon to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Bsg Triathlon 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 Bsg Triathlon is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Business Systems Group and the Triathlon Sponsorship Question Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Bsg Triathlon in the sector have low bargaining power. Business Systems Group and the Triathlon Sponsorship Question has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bsg Triathlon to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Bsg Triathlon 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
– Bsg Triathlon has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Business Systems Group and the Triathlon Sponsorship Question 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.
Cross disciplinary teams
– Horizontal connected teams at the Bsg Triathlon are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Effective Research and Development (R&D)
– Bsg Triathlon 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 Business Systems Group and the Triathlon Sponsorship Question - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Sales & Marketing industry
– Business Systems Group and the Triathlon Sponsorship Question firm has clearly differentiated products in the market place. This has enabled Bsg Triathlon to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Bsg Triathlon to invest into research and development (R&D) and innovation.
Weaknesses Business Systems Group and the Triathlon Sponsorship Question | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Business Systems Group and the Triathlon Sponsorship Question are -
Workers concerns about automation
– As automation is fast increasing in the segment, Bsg Triathlon 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, Bsg Triathlon 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. Bsg Triathlon 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.
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 Bsg Triathlon supply chain. Even after few cautionary changes mentioned in the HBR case study - Business Systems Group and the Triathlon Sponsorship Question, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bsg Triathlon vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Bsg Triathlon 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Business Systems Group and the Triathlon Sponsorship Question, is just above the industry average. Bsg Triathlon 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Business Systems Group and the Triathlon Sponsorship Question, in the dynamic environment Bsg Triathlon has struggled to respond to the nimble upstart competition. Bsg Triathlon has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Business Systems Group and the Triathlon Sponsorship Question 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 Bsg Triathlon has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Business Systems Group and the Triathlon Sponsorship Question 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 Business Systems Group and the Triathlon Sponsorship Question can leverage the sales team experience to cultivate customer relationships as Bsg Triathlon is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Bsg Triathlon is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Bsg Triathlon needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bsg Triathlon to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Bsg Triathlon products
– To increase the profitability and margins on the products, Bsg Triathlon needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Business Systems Group and the Triathlon Sponsorship Question HBR case study mentions - Bsg Triathlon 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.
Opportunities Business Systems Group and the Triathlon Sponsorship Question | 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 Business Systems Group and the Triathlon Sponsorship Question 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. Bsg Triathlon 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. Bsg Triathlon 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, Bsg Triathlon can use these opportunities to build new business models that can help the communities that Bsg Triathlon operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Leveraging digital technologies
– Bsg Triathlon 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bsg Triathlon 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, Business Systems Group and the Triathlon Sponsorship Question, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bsg Triathlon 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bsg Triathlon 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. Bsg Triathlon can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Bsg Triathlon 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.
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. Bsg Triathlon can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bsg Triathlon 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 Bsg Triathlon to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bsg Triathlon 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.
Buying journey improvements
– Bsg Triathlon can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Business Systems Group and the Triathlon Sponsorship Question 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.
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 Bsg Triathlon 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.
Threats Business Systems Group and the Triathlon Sponsorship Question External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Business Systems Group and the Triathlon Sponsorship Question are -
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. Bsg Triathlon 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.
Increasing wage structure of Bsg Triathlon
– 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 Bsg Triathlon.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bsg Triathlon with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Bsg Triathlon 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.
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 Bsg Triathlon.
Environmental challenges
– Bsg Triathlon 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. Bsg Triathlon can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Consumer confidence and its impact on Bsg Triathlon 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bsg Triathlon 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 Business Systems Group and the Triathlon Sponsorship Question .
Shortening product life cycle
– it is one of the major threat that Bsg Triathlon is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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 Business Systems Group and the Triathlon Sponsorship Question, Bsg Triathlon 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 .
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. Bsg Triathlon can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bsg Triathlon 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.
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 Bsg Triathlon business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Business Systems Group and the Triathlon Sponsorship Question 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 Business Systems Group and the Triathlon Sponsorship Question 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 Business Systems Group and the Triathlon Sponsorship Question 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 Business Systems Group and the Triathlon Sponsorship Question 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 Business Systems Group and the Triathlon Sponsorship Question 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 Bsg Triathlon needs to make to build a sustainable competitive advantage.