Goldieblox: Toy Company and Copyright Infringement SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Goldieblox: Toy Company and Copyright Infringement
In November 2013, GoldieBlox was accused of copyright infringement. It used the Beastie Boys song "Girls" in one of its advertisements promoting new toys for girls without permission. The company's reaction to file a lawsuit against the band was not well received and perhaps a little hasty.In the wake of the crisis, the chief executive officer of GoldieBlox Toy Company and her team had some decisions to make regarding how to handle the lawsuit they filed against the Beastie Boys that then backfired. The hostile environment was not conducive to the image of the company and the negative media was of concern to GoldieBox and its employees.
Swot Analysis of "Goldieblox: Toy Company and Copyright Infringement" written by Zahra Ladha Jiwani includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Goldieblox Beastie facing as an external strategic factors. Some of the topics covered in Goldieblox: Toy Company and Copyright Infringement case study are - Strategic Management Strategies, Conflict, Intellectual property and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Goldieblox: Toy Company and Copyright Infringement casestudy better are - – challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Goldieblox: Toy Company and Copyright Infringement
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Goldieblox: Toy Company and Copyright Infringement case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Goldieblox Beastie, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Goldieblox Beastie 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 Goldieblox: Toy Company and Copyright Infringement can be done for the following purposes –
1. Strategic planning using facts provided in Goldieblox: Toy Company and Copyright Infringement case study
2. Improving business portfolio management of Goldieblox Beastie
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 Goldieblox Beastie
Strengths Goldieblox: Toy Company and Copyright Infringement | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Goldieblox Beastie in Goldieblox: Toy Company and Copyright Infringement Harvard Business Review case study are -
Analytics focus
– Goldieblox Beastie 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 Zahra Ladha Jiwani 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.
Ability to lead change in Sales & Marketing field
– Goldieblox Beastie 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 Goldieblox Beastie in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Goldieblox Beastie in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Sales & Marketing industry
– Goldieblox: Toy Company and Copyright Infringement firm has clearly differentiated products in the market place. This has enabled Goldieblox Beastie to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Goldieblox Beastie to invest into research and development (R&D) and innovation.
Training and development
– Goldieblox Beastie has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Goldieblox: Toy Company and Copyright Infringement 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.
Learning organization
- Goldieblox Beastie 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 Goldieblox Beastie is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Goldieblox: Toy Company and Copyright Infringement Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Goldieblox Beastie is one of the leading recruiters in the industry. Managers in the Goldieblox: Toy Company and Copyright Infringement are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Goldieblox Beastie 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 Goldieblox: Toy Company and Copyright Infringement - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Goldieblox Beastie is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Goldieblox Beastie 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 Goldieblox: Toy Company and Copyright Infringement HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Goldieblox Beastie digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Goldieblox Beastie 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.
Organizational Resilience of Goldieblox Beastie
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Goldieblox Beastie does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Goldieblox: Toy Company and Copyright Infringement | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Goldieblox: Toy Company and Copyright Infringement are -
Products dominated business model
– Even though Goldieblox Beastie 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 - Goldieblox: Toy Company and Copyright Infringement should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Goldieblox Beastie 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.
Capital Spending Reduction
– Even during the low interest decade, Goldieblox Beastie 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Goldieblox: Toy Company and Copyright Infringement, it seems that the employees of Goldieblox Beastie don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High cash cycle compare to competitors
Goldieblox Beastie 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.
Need for greater diversity
– Goldieblox Beastie 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.
Aligning sales with marketing
– It come across in the case study Goldieblox: Toy Company and Copyright Infringement 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 Goldieblox: Toy Company and Copyright Infringement can leverage the sales team experience to cultivate customer relationships as Goldieblox Beastie is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Goldieblox: Toy Company and Copyright Infringement 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 Goldieblox Beastie 's lucrative customers.
Slow to strategic competitive environment developments
– As Goldieblox: Toy Company and Copyright Infringement HBR case study mentions - Goldieblox Beastie 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Zahra Ladha Jiwani suggests that, Goldieblox Beastie 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Goldieblox: Toy Company and Copyright Infringement, in the dynamic environment Goldieblox Beastie has struggled to respond to the nimble upstart competition. Goldieblox Beastie has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Goldieblox: Toy Company and Copyright Infringement | 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 Goldieblox: Toy Company and Copyright Infringement 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. Goldieblox Beastie 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. Goldieblox Beastie 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Goldieblox Beastie 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, Goldieblox Beastie is facing challenges because of the dominance of functional experts in the organization. Goldieblox: Toy Company and Copyright Infringement 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.
Learning at scale
– Online learning technologies has now opened space for Goldieblox Beastie 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 Goldieblox Beastie 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.
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. Goldieblox Beastie can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Goldieblox Beastie 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 Goldieblox: Toy Company and Copyright Infringement - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Goldieblox Beastie to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Goldieblox Beastie can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Goldieblox Beastie 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.
Manufacturing automation
– Goldieblox Beastie 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, Goldieblox Beastie can use these opportunities to build new business models that can help the communities that Goldieblox Beastie operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Better consumer reach
– The expansion of the 5G network will help Goldieblox Beastie to increase its market reach. Goldieblox Beastie 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 Goldieblox Beastie has opened avenues for new revenue streams for the organization in the industry. This can help Goldieblox Beastie to build a more holistic ecosystem as suggested in the Goldieblox: Toy Company and Copyright Infringement case study. Goldieblox Beastie can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Goldieblox: Toy Company and Copyright Infringement External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Goldieblox: Toy Company and Copyright Infringement are -
Environmental challenges
– Goldieblox Beastie 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. Goldieblox Beastie can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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. Goldieblox Beastie can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Goldieblox: Toy Company and Copyright Infringement, Goldieblox Beastie 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Goldieblox Beastie 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.
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.
Technology acceleration in Forth Industrial Revolution
– Goldieblox Beastie has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Goldieblox Beastie 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.
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. Goldieblox Beastie needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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 Goldieblox Beastie 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 Goldieblox Beastie in the Sales & Marketing sector and impact the bottomline of the organization.
Consumer confidence and its impact on Goldieblox Beastie 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.
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. Goldieblox Beastie 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 Goldieblox Beastie.
Shortening product life cycle
– it is one of the major threat that Goldieblox Beastie is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Goldieblox: Toy Company and Copyright Infringement 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 Goldieblox: Toy Company and Copyright Infringement 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 Goldieblox: Toy Company and Copyright Infringement 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 Goldieblox: Toy Company and Copyright Infringement 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 Goldieblox: Toy Company and Copyright Infringement 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 Goldieblox Beastie needs to make to build a sustainable competitive advantage.