A Lead User Template: Unlocking the Value of PWD SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of A Lead User Template: Unlocking the Value of PWD
In early 2012, supported by a seed grant from PepsiCo, Nithya Raman, then a masters student in marketing at Columbia Business School (CBS), partnered with Rich Donovan, CBS '02, a world-renowned expert in the convergence of people with disabilities (PWD) and corporate profitability. Together, they framed a lead user study to gain PWD-inspired insights into innovation in the retail space. In this case, students learn of past applications of the lead user method to achieve breakthrough innovation and the step-by-step process by which Raman framed and carried out her study.
Swot Analysis of "A Lead User Template: Unlocking the Value of PWD" written by Olivier Toubia, Nithya Raman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pwd Raman facing as an external strategic factors. Some of the topics covered in A Lead User Template: Unlocking the Value of PWD case study are - Strategic Management Strategies, Innovation, Market research and Sales & Marketing.
Some of the macro environment factors that can be used to understand the A Lead User Template: Unlocking the Value of PWD casestudy better are - – there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, central banks are concerned over increasing inflation, technology disruption, increasing household debt because of falling income levels,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, etc
Introduction to SWOT Analysis of A Lead User Template: Unlocking the Value of PWD
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A Lead User Template: Unlocking the Value of PWD case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pwd Raman, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pwd Raman 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 A Lead User Template: Unlocking the Value of PWD can be done for the following purposes –
1. Strategic planning using facts provided in A Lead User Template: Unlocking the Value of PWD case study
2. Improving business portfolio management of Pwd Raman
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 Pwd Raman
Strengths A Lead User Template: Unlocking the Value of PWD | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pwd Raman in A Lead User Template: Unlocking the Value of PWD Harvard Business Review case study are -
Successful track record of launching new products
– Pwd Raman has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pwd Raman 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.
Sustainable margins compare to other players in Sales & Marketing industry
– A Lead User Template: Unlocking the Value of PWD firm has clearly differentiated products in the market place. This has enabled Pwd Raman to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Pwd Raman to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Pwd Raman 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 A Lead User Template: Unlocking the Value of PWD - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Pwd Raman is one of the most innovative firm in sector. Manager in A Lead User Template: Unlocking the Value of PWD Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Pwd Raman has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in A Lead User Template: Unlocking the Value of PWD 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.
High switching costs
– The high switching costs that Pwd Raman 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.
Learning organization
- Pwd Raman 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 Pwd Raman is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in A Lead User Template: Unlocking the Value of PWD Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Pwd Raman in the sector have low bargaining power. A Lead User Template: Unlocking the Value of PWD has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pwd Raman to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Pwd Raman 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 A Lead User Template: Unlocking the Value of PWD HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Pwd Raman is present in almost all the verticals within the industry. This has provided firm in A Lead User Template: Unlocking the Value of PWD 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.
Cross disciplinary teams
– Horizontal connected teams at the Pwd Raman 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.
Ability to lead change in Sales & Marketing field
– Pwd Raman 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 Pwd Raman in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses A Lead User Template: Unlocking the Value of PWD | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A Lead User Template: Unlocking the Value of PWD are -
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 Pwd Raman supply chain. Even after few cautionary changes mentioned in the HBR case study - A Lead User Template: Unlocking the Value of PWD, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pwd Raman vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Pwd Raman 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. Pwd Raman 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.
Interest costs
– Compare to the competition, Pwd Raman 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.
High operating costs
– Compare to the competitors, firm in the HBR case study A Lead User Template: Unlocking the Value of PWD 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 Pwd Raman 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Pwd Raman is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Pwd Raman needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pwd Raman to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study A Lead User Template: Unlocking the Value of PWD, it seems that the employees of Pwd Raman 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.
Aligning sales with marketing
– It come across in the case study A Lead User Template: Unlocking the Value of PWD 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 A Lead User Template: Unlocking the Value of PWD can leverage the sales team experience to cultivate customer relationships as Pwd Raman is planning to shift buying processes online.
High cash cycle compare to competitors
Pwd Raman 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.
Low market penetration in new markets
– Outside its home market of Pwd Raman, firm in the HBR case study A Lead User Template: Unlocking the Value of PWD needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Olivier Toubia, Nithya Raman suggests that, Pwd Raman 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Pwd Raman 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.
Opportunities A Lead User Template: Unlocking the Value of PWD | 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 A Lead User Template: Unlocking the Value of PWD are -
Using analytics as competitive advantage
– Pwd Raman 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 A Lead User Template: Unlocking the Value of PWD - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pwd Raman to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Pwd Raman 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Pwd Raman 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, A Lead User Template: Unlocking the Value of PWD, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pwd Raman 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.
Learning at scale
– Online learning technologies has now opened space for Pwd Raman 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.
Loyalty marketing
– Pwd Raman has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, 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. Pwd Raman can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Pwd Raman 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.
Developing new processes and practices
– Pwd Raman 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. Pwd Raman 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. Pwd Raman 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.
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 Pwd Raman in the consumer business. Now Pwd Raman can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pwd Raman can use these opportunities to build new business models that can help the communities that Pwd Raman operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Buying journey improvements
– Pwd Raman can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. A Lead User Template: Unlocking the Value of PWD 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.
Threats A Lead User Template: Unlocking the Value of PWD External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A Lead User Template: Unlocking the Value of PWD are -
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. Pwd Raman needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Increasing wage structure of Pwd Raman
– 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 Pwd Raman.
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.
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. Pwd Raman can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Pwd Raman in the Sales & Marketing sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pwd Raman 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 A Lead User Template: Unlocking the Value of PWD .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pwd Raman with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Pwd Raman is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Pwd Raman 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.
Environmental challenges
– Pwd Raman 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. Pwd Raman can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pwd Raman in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Pwd Raman business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of A Lead User Template: Unlocking the Value of PWD 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 A Lead User Template: Unlocking the Value of PWD 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 A Lead User Template: Unlocking the Value of PWD 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 A Lead User Template: Unlocking the Value of PWD 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 A Lead User Template: Unlocking the Value of PWD 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 Pwd Raman needs to make to build a sustainable competitive advantage.
