Altius Golf and the Fighter Brand SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Altius Golf and the Fighter Brand
Altius Golf is the clear leader in the golf ball market despite a long-term decline in the number of golfers and a drop in sales following the financial crisis. The firm has maintained its position by introducing generations of advanced, super-premium golf balls that allow their customers to emulate professional golfers. The company has been losing market share to lower-priced competitors and the CEO wants to introduce a new program called Elevate to foster the next generation of golfers. With Elevate, the firm will introduce a ball that is more forgiving and easier to drive for distance and offer it at a price 40% below the company's flagship brand. Elevate will be available through "off-course" channels such as golf specialty stores and big box retailers instead of "on-course" pro shops where the firm typically sells its products. The board of directors is divided on whether to support the decision. Students must perform a quantitative analysis of the CEO's proposal to understand the potential risks and gains before making a final recommendation.
Swot Analysis of "Altius Golf and the Fighter Brand" written by Robert J. Dolan, Sunru Yong includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Golf Golfers facing as an external strategic factors. Some of the topics covered in Altius Golf and the Fighter Brand case study are - Strategic Management Strategies, Boards, Branding, Collaboration, Competitive strategy, Crisis management, Decision making, Financial analysis, Leading teams, Organizational culture, Pricing, Recession, Social responsibility and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Altius Golf and the Fighter Brand casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, geopolitical disruptions, increasing government debt because of Covid-19 spendings, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy,
banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Altius Golf and the Fighter Brand
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Altius Golf and the Fighter Brand case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Golf Golfers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Golf Golfers 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 Altius Golf and the Fighter Brand can be done for the following purposes –
1. Strategic planning using facts provided in Altius Golf and the Fighter Brand case study
2. Improving business portfolio management of Golf Golfers
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 Golf Golfers
Strengths Altius Golf and the Fighter Brand | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Golf Golfers in Altius Golf and the Fighter Brand Harvard Business Review case study are -
Learning organization
- Golf Golfers 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 Golf Golfers is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Altius Golf and the Fighter Brand Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Golf Golfers 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.
Highly skilled collaborators
– Golf Golfers 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 Altius Golf and the Fighter Brand HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Golf Golfers is present in almost all the verticals within the industry. This has provided firm in Altius Golf and the Fighter Brand 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.
Effective Research and Development (R&D)
– Golf Golfers 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 Altius Golf and the Fighter Brand - 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 lead change in Sales & Marketing field
– Golf Golfers is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Golf Golfers in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Altius Golf and the Fighter Brand 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Altius Golf and the Fighter Brand firm has clearly differentiated products in the market place. This has enabled Golf Golfers to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Golf Golfers to invest into research and development (R&D) and innovation.
Organizational Resilience of Golf Golfers
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Golf Golfers does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Golf Golfers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Golf Golfers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Golf Golfers is one of the leading recruiters in the industry. Managers in the Altius Golf and the Fighter Brand are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Golf Golfers in the sector have low bargaining power. Altius Golf and the Fighter Brand has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Golf Golfers to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Altius Golf and the Fighter Brand | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Altius Golf and the Fighter Brand are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Altius Golf and the Fighter Brand 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 Golf Golfers has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Golf Golfers, firm in the HBR case study Altius Golf and the Fighter Brand needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Golf Golfers has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Need for greater diversity
– Golf Golfers has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert J. Dolan, Sunru Yong suggests that, Golf Golfers 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.
Lack of clear differentiation of Golf Golfers products
– To increase the profitability and margins on the products, Golf Golfers needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Golf Golfers 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. Golf Golfers 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.
Aligning sales with marketing
– It come across in the case study Altius Golf and the Fighter Brand 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 Altius Golf and the Fighter Brand can leverage the sales team experience to cultivate customer relationships as Golf Golfers is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Golf Golfers is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Altius Golf and the Fighter Brand 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 cash cycle compare to competitors
Golf Golfers 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Altius Golf and the Fighter Brand, in the dynamic environment Golf Golfers has struggled to respond to the nimble upstart competition. Golf Golfers has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Altius Golf and the Fighter Brand | 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 Altius Golf and the Fighter Brand are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Golf Golfers 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, Altius Golf and the Fighter Brand, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Golf Golfers 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Golf Golfers 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Golf Golfers is facing challenges because of the dominance of functional experts in the organization. Altius Golf and the Fighter Brand 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.
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. Golf Golfers can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Golf Golfers in the consumer business. Now Golf Golfers can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Golf Golfers 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.
Manufacturing automation
– Golf Golfers 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Golf Golfers can use these opportunities to build new business models that can help the communities that Golf Golfers operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Golf Golfers 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 Golf Golfers to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Golf Golfers can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Altius Golf and the Fighter Brand 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.
Better consumer reach
– The expansion of the 5G network will help Golf Golfers to increase its market reach. Golf Golfers 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.
Creating value in data economy
– The success of analytics program of Golf Golfers has opened avenues for new revenue streams for the organization in the industry. This can help Golf Golfers to build a more holistic ecosystem as suggested in the Altius Golf and the Fighter Brand case study. Golf Golfers can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Altius Golf and the Fighter Brand External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Altius Golf and the Fighter Brand are -
Stagnating economy with rate increase
– Golf Golfers 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.
Consumer confidence and its impact on Golf Golfers 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, Golf Golfers 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 Altius Golf and the Fighter Brand .
High dependence on third party suppliers
– Golf Golfers 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.
Regulatory challenges
– Golf Golfers 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.
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. Golf Golfers 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.
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 Golf Golfers.
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 Golf Golfers business can come under increasing regulations regarding data privacy, data security, 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. Golf Golfers needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Environmental challenges
– Golf Golfers 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. Golf Golfers can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Shortening product life cycle
– it is one of the major threat that Golf Golfers is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Golf Golfers 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 Altius Golf and the Fighter Brand 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 Altius Golf and the Fighter Brand 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 Altius Golf and the Fighter Brand 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 Altius Golf and the Fighter Brand 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 Altius Golf and the Fighter Brand 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 Golf Golfers needs to make to build a sustainable competitive advantage.
