Maybelline Inc.: About Face SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Maybelline Inc.: About Face
Maybelline is the world's leading mass cosmetic company. It enjoys tremendous success and a commanding market share, particularly in the eye makeup category. But Maybelline also acknowledges a weakness in the strategic face segment, most notably in the profitable foundations product lines. Approaches the challenge of successfully growing this important category by looking at every aspect necessary to make this move, including: consumer marketing strategy, consumer behavior and purchasing patterns, demographic analysis, segmentation and targeting, product management, distribution channels, pricing, advertising, and understanding the competitive environment.
Authors :: Julie Hennessy, Jill Carter, Jimmy Carter, Alice M. Tybout
Swot Analysis of "Maybelline Inc.: About Face" written by Julie Hennessy, Jill Carter, Jimmy Carter, Alice M. Tybout includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Maybelline Category facing as an external strategic factors. Some of the topics covered in Maybelline Inc.: About Face case study are - Strategic Management Strategies, Competition, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Maybelline Inc.: About Face casestudy better are - – technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs,
wage bills are increasing, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Maybelline Inc.: About Face
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Maybelline Inc.: About Face case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Maybelline Category, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Maybelline Category 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 Maybelline Inc.: About Face can be done for the following purposes –
1. Strategic planning using facts provided in Maybelline Inc.: About Face case study
2. Improving business portfolio management of Maybelline Category
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 Maybelline Category
Strengths Maybelline Inc.: About Face | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Maybelline Category in Maybelline Inc.: About Face Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Maybelline Category in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Maybelline Category
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Maybelline Category does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Sales & Marketing industry
– Maybelline Inc.: About Face firm has clearly differentiated products in the market place. This has enabled Maybelline Category to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Maybelline Category to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Maybelline Category 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.
Analytics focus
– Maybelline Category 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 Julie Hennessy, Jill Carter, Jimmy Carter, Alice M. Tybout 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 Maybelline Category in the sector have low bargaining power. Maybelline Inc.: About Face has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Maybelline Category to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Sales & Marketing field
– Maybelline Category 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 Maybelline Category in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Maybelline Category has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Maybelline Category to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Maybelline Category has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Maybelline Category 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.
Ability to recruit top talent
– Maybelline Category is one of the leading recruiters in the industry. Managers in the Maybelline Inc.: About Face 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 switching costs
– The high switching costs that Maybelline Category 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.
Innovation driven organization
– Maybelline Category is one of the most innovative firm in sector. Manager in Maybelline Inc.: About Face Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Maybelline Inc.: About Face | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Maybelline Inc.: About Face are -
Lack of clear differentiation of Maybelline Category products
– To increase the profitability and margins on the products, Maybelline Category needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Maybelline Inc.: About Face, in the dynamic environment Maybelline Category has struggled to respond to the nimble upstart competition. Maybelline Category has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Maybelline Inc.: About Face, 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.
Increasing silos among functional specialists
– The organizational structure of Maybelline Category is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Maybelline Category needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Maybelline Category to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Maybelline Category 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 operating costs
– Compare to the competitors, firm in the HBR case study Maybelline Inc.: About Face has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Maybelline Category 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Maybelline Category 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.
Skills based hiring
– The stress on hiring functional specialists at Maybelline Category 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.
High cash cycle compare to competitors
Maybelline Category 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Maybelline Inc.: About Face 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 Maybelline Category has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Maybelline Category, firm in the HBR case study Maybelline Inc.: About Face needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Maybelline Inc.: About Face | 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 Maybelline Inc.: About Face 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 Maybelline Category in the consumer business. Now Maybelline Category can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Maybelline Category 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.
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. Maybelline Category 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. Maybelline Category 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.
Using analytics as competitive advantage
– Maybelline Category 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 Maybelline Inc.: About Face - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Maybelline Category to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Maybelline Category is facing challenges because of the dominance of functional experts in the organization. Maybelline Inc.: About Face 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.
Creating value in data economy
– The success of analytics program of Maybelline Category has opened avenues for new revenue streams for the organization in the industry. This can help Maybelline Category to build a more holistic ecosystem as suggested in the Maybelline Inc.: About Face case study. Maybelline Category can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Maybelline Category can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Maybelline Inc.: About Face 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Maybelline Category can use these opportunities to build new business models that can help the communities that Maybelline Category operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Maybelline Category 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.
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 Maybelline Category 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.
Learning at scale
– Online learning technologies has now opened space for Maybelline Category 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.
Better consumer reach
– The expansion of the 5G network will help Maybelline Category to increase its market reach. Maybelline Category 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.
Building a culture of innovation
– managers at Maybelline Category 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.
Threats Maybelline Inc.: About Face External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Maybelline Inc.: About Face are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Maybelline Category 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 Maybelline Inc.: About Face .
Regulatory challenges
– Maybelline Category 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.
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 Maybelline Category business can come under increasing regulations regarding data privacy, data security, etc.
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 Maybelline Category in the Sales & Marketing sector and impact the bottomline of the organization.
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. Maybelline Category 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 Maybelline Category.
Consumer confidence and its impact on Maybelline Category 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.
Stagnating economy with rate increase
– Maybelline Category 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Maybelline Inc.: About Face, Maybelline Category 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 Maybelline Category
– 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 Maybelline Category.
Shortening product life cycle
– it is one of the major threat that Maybelline Category is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Maybelline Category needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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. Maybelline Category 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 Maybelline Inc.: About Face 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 Maybelline Inc.: About Face 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 Maybelline Inc.: About Face 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 Maybelline Inc.: About Face 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 Maybelline Inc.: About Face 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 Maybelline Category needs to make to build a sustainable competitive advantage.