Customer Segmentation and Business Model Evolution at Unbounce SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Customer Segmentation and Business Model Evolution at Unbounce
In December 2011, the co-founder of Unbounce, a Vancouver-based software services start-up, is considering expanding into the enterprise user space. Unbounce got its start providing turnkey landing pages - web pages specific to current advertising campaigns - to the small and medium-sized enterprise market. Within 18 months, the company has achieved thought leadership in this space, has a list of paying customers and has built its support team from six to 25 people. The challenge is that since the entire company is focused on its core market segment, entering the enterprise user space means that different capabilities will have to be developed. Will developing the enterprise user market prevent the competition from invading this space or will it mean alienating and perhaps losing its current customers? What is the best plan for going forward?
Swot Analysis of "Customer Segmentation and Business Model Evolution at Unbounce" written by Raymond Pirouz, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Unbounce Space facing as an external strategic factors. Some of the topics covered in Customer Segmentation and Business Model Evolution at Unbounce case study are - Strategic Management Strategies, Social platforms and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Customer Segmentation and Business Model Evolution at Unbounce casestudy better are - – central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, there is backlash against globalization,
increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Customer Segmentation and Business Model Evolution at Unbounce
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Customer Segmentation and Business Model Evolution at Unbounce case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Unbounce Space, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Unbounce Space 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 Customer Segmentation and Business Model Evolution at Unbounce can be done for the following purposes –
1. Strategic planning using facts provided in Customer Segmentation and Business Model Evolution at Unbounce case study
2. Improving business portfolio management of Unbounce Space
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 Unbounce Space
Strengths Customer Segmentation and Business Model Evolution at Unbounce | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Unbounce Space in Customer Segmentation and Business Model Evolution at Unbounce Harvard Business Review case study are -
Ability to recruit top talent
– Unbounce Space is one of the leading recruiters in the industry. Managers in the Customer Segmentation and Business Model Evolution at Unbounce are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Unbounce Space has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Unbounce Space to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Customer Segmentation and Business Model Evolution at Unbounce 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.
Diverse revenue streams
– Unbounce Space is present in almost all the verticals within the industry. This has provided firm in Customer Segmentation and Business Model Evolution at Unbounce 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
– Customer Segmentation and Business Model Evolution at Unbounce firm has clearly differentiated products in the market place. This has enabled Unbounce Space to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Unbounce Space to invest into research and development (R&D) and innovation.
Analytics focus
– Unbounce Space 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 Raymond Pirouz, Ken Mark 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.
Low bargaining power of suppliers
– Suppliers of Unbounce Space in the sector have low bargaining power. Customer Segmentation and Business Model Evolution at Unbounce has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Unbounce Space to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Unbounce Space
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Unbounce Space does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Unbounce Space has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Customer Segmentation and Business Model Evolution at Unbounce Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Innovation driven organization
– Unbounce Space is one of the most innovative firm in sector. Manager in Customer Segmentation and Business Model Evolution at Unbounce Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Unbounce Space 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 Customer Segmentation and Business Model Evolution at Unbounce - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Unbounce Space in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Customer Segmentation and Business Model Evolution at Unbounce | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Customer Segmentation and Business Model Evolution at Unbounce are -
Increasing silos among functional specialists
– The organizational structure of Unbounce Space is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Unbounce Space needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Unbounce Space to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Unbounce Space products
– To increase the profitability and margins on the products, Unbounce Space needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Raymond Pirouz, Ken Mark suggests that, Unbounce Space 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.
No frontier risks strategy
– After analyzing the HBR case study Customer Segmentation and Business Model Evolution at Unbounce, 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.
Low market penetration in new markets
– Outside its home market of Unbounce Space, firm in the HBR case study Customer Segmentation and Business Model Evolution at Unbounce needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Unbounce Space has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Interest costs
– Compare to the competition, Unbounce Space 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.
Skills based hiring
– The stress on hiring functional specialists at Unbounce Space 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.
Products dominated business model
– Even though Unbounce Space 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 - Customer Segmentation and Business Model Evolution at Unbounce should strive to include more intangible value offerings along with its core products and services.
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 Unbounce Space supply chain. Even after few cautionary changes mentioned in the HBR case study - Customer Segmentation and Business Model Evolution at Unbounce, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Unbounce Space vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Customer Segmentation and Business Model Evolution at Unbounce 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 Customer Segmentation and Business Model Evolution at Unbounce can leverage the sales team experience to cultivate customer relationships as Unbounce Space is planning to shift buying processes online.
Opportunities Customer Segmentation and Business Model Evolution at Unbounce | 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 Customer Segmentation and Business Model Evolution at Unbounce are -
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 Unbounce Space in the consumer business. Now Unbounce Space can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Unbounce Space 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.
Building a culture of innovation
– managers at Unbounce Space 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.
Manufacturing automation
– Unbounce Space 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.
Developing new processes and practices
– Unbounce Space 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.
Leveraging digital technologies
– Unbounce Space 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.
Using analytics as competitive advantage
– Unbounce Space 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 Customer Segmentation and Business Model Evolution at Unbounce - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Unbounce Space to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Unbounce Space 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, Customer Segmentation and Business Model Evolution at Unbounce, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Unbounce Space has opened avenues for new revenue streams for the organization in the industry. This can help Unbounce Space to build a more holistic ecosystem as suggested in the Customer Segmentation and Business Model Evolution at Unbounce case study. Unbounce Space can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Unbounce Space 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 Unbounce Space to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Unbounce Space can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Customer Segmentation and Business Model Evolution at Unbounce 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.
Learning at scale
– Online learning technologies has now opened space for Unbounce Space 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Unbounce Space 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.
Threats Customer Segmentation and Business Model Evolution at Unbounce External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Customer Segmentation and Business Model Evolution at Unbounce are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Unbounce Space 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 Customer Segmentation and Business Model Evolution at Unbounce .
Consumer confidence and its impact on Unbounce Space 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.
Technology acceleration in Forth Industrial Revolution
– Unbounce Space has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Unbounce Space 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Customer Segmentation and Business Model Evolution at Unbounce, Unbounce Space 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 .
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 Unbounce Space.
Environmental challenges
– Unbounce Space 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. Unbounce Space can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Stagnating economy with rate increase
– Unbounce Space 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.
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.
Increasing wage structure of Unbounce Space
– 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 Unbounce Space.
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. Unbounce Space 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.
Shortening product life cycle
– it is one of the major threat that Unbounce Space is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Unbounce Space 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. Unbounce Space can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Customer Segmentation and Business Model Evolution at Unbounce 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 Customer Segmentation and Business Model Evolution at Unbounce 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 Customer Segmentation and Business Model Evolution at Unbounce 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 Customer Segmentation and Business Model Evolution at Unbounce 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 Customer Segmentation and Business Model Evolution at Unbounce 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 Unbounce Space needs to make to build a sustainable competitive advantage.
