Fenix: Diversified Niche Marketing in the Lifestyle Business SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Fenix: Diversified Niche Marketing in the Lifestyle Business
Fenix Group's business spans from general merchandise retailing to Italian fashion. The diversity stems from the management's multiniche marketing strategy. Looks at the journeys of two entrepreneurs who started out with a tiny garment trading company and, in the span of 30 years, expanded into a multinational network of manufacturing and retailing with $230 million annual turnover. How did Fenix identify and tap into niches in different markets? What does it take to be successful in niche markets? Also analyzes Fenix's strategy and discusses the critical success factors of its multiniche marketing strategy.
Swot Analysis of "Fenix: Diversified Niche Marketing in the Lifestyle Business" written by Bennett Yim, Monica Wong includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Fenix Multiniche facing as an external strategic factors. Some of the topics covered in Fenix: Diversified Niche Marketing in the Lifestyle Business case study are - Strategic Management Strategies, Marketing, Networking, Strategy execution and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Fenix: Diversified Niche Marketing in the Lifestyle Business casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, there is increasing trade war between United States & China,
there is backlash against globalization, geopolitical disruptions, etc
Introduction to SWOT Analysis of Fenix: Diversified Niche Marketing in the Lifestyle Business
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Fenix: Diversified Niche Marketing in the Lifestyle Business case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fenix Multiniche, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fenix Multiniche 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 Fenix: Diversified Niche Marketing in the Lifestyle Business can be done for the following purposes –
1. Strategic planning using facts provided in Fenix: Diversified Niche Marketing in the Lifestyle Business case study
2. Improving business portfolio management of Fenix Multiniche
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 Fenix Multiniche
Strengths Fenix: Diversified Niche Marketing in the Lifestyle Business | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fenix Multiniche in Fenix: Diversified Niche Marketing in the Lifestyle Business Harvard Business Review case study are -
Effective Research and Development (R&D)
– Fenix Multiniche 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 Fenix: Diversified Niche Marketing in the Lifestyle Business - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Fenix Multiniche has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Fenix: Diversified Niche Marketing in the Lifestyle Business 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.
Diverse revenue streams
– Fenix Multiniche is present in almost all the verticals within the industry. This has provided firm in Fenix: Diversified Niche Marketing in the Lifestyle Business 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.
Ability to lead change in Sales & Marketing field
– Fenix Multiniche 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 Fenix Multiniche in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Fenix Multiniche has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fenix Multiniche to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Fenix Multiniche 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 Fenix Multiniche is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Fenix: Diversified Niche Marketing in the Lifestyle Business Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Fenix Multiniche 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 Fenix: Diversified Niche Marketing in the Lifestyle Business HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Fenix: Diversified Niche Marketing in the Lifestyle Business 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.
Organizational Resilience of Fenix Multiniche
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Fenix Multiniche does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Fenix Multiniche in the sector have low bargaining power. Fenix: Diversified Niche Marketing in the Lifestyle Business has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fenix Multiniche to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Fenix Multiniche 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Fenix Multiniche digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fenix Multiniche 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.
Weaknesses Fenix: Diversified Niche Marketing in the Lifestyle Business | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fenix: Diversified Niche Marketing in the Lifestyle Business are -
Slow decision making process
– As mentioned earlier in the report, Fenix Multiniche 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. Fenix Multiniche 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.
Capital Spending Reduction
– Even during the low interest decade, Fenix Multiniche 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Fenix: Diversified Niche Marketing in the Lifestyle Business, is just above the industry average. Fenix Multiniche needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Workers concerns about automation
– As automation is fast increasing in the segment, Fenix Multiniche 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Fenix: Diversified Niche Marketing in the Lifestyle Business 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 Fenix Multiniche has relatively successful track record of launching new products.
High cash cycle compare to competitors
Fenix Multiniche 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.
No frontier risks strategy
– After analyzing the HBR case study Fenix: Diversified Niche Marketing in the Lifestyle Business, 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fenix Multiniche is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Fenix: Diversified Niche Marketing in the Lifestyle Business can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Fenix Multiniche, firm in the HBR case study Fenix: Diversified Niche Marketing in the Lifestyle Business needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Fenix Multiniche is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Fenix Multiniche needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fenix Multiniche 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 Fenix: Diversified Niche Marketing in the Lifestyle Business, it seems that the employees of Fenix Multiniche 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.
Opportunities Fenix: Diversified Niche Marketing in the Lifestyle Business | 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 Fenix: Diversified Niche Marketing in the Lifestyle Business are -
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 Fenix Multiniche 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 Fenix Multiniche 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.
Leveraging digital technologies
– Fenix Multiniche 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fenix Multiniche 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 Fenix Multiniche to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fenix Multiniche can use these opportunities to build new business models that can help the communities that Fenix Multiniche operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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. Fenix Multiniche 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. Fenix Multiniche 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Fenix Multiniche can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Fenix Multiniche can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Fenix Multiniche in the consumer business. Now Fenix Multiniche can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Fenix Multiniche 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fenix Multiniche 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, Fenix: Diversified Niche Marketing in the Lifestyle Business, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Fenix Multiniche has opened avenues for new revenue streams for the organization in the industry. This can help Fenix Multiniche to build a more holistic ecosystem as suggested in the Fenix: Diversified Niche Marketing in the Lifestyle Business case study. Fenix Multiniche can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Fenix Multiniche 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.
Threats Fenix: Diversified Niche Marketing in the Lifestyle Business External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Fenix: Diversified Niche Marketing in the Lifestyle Business are -
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. Fenix Multiniche can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Fenix Multiniche with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Shortening product life cycle
– it is one of the major threat that Fenix Multiniche is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Fenix Multiniche 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.
Increasing wage structure of Fenix Multiniche
– 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 Fenix Multiniche.
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 Fenix Multiniche.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fenix Multiniche 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.
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 Fenix Multiniche in the Sales & Marketing sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Fenix Multiniche has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Fenix Multiniche 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.
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 Fenix Multiniche business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Fenix Multiniche 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.
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. Fenix Multiniche needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Fenix: Diversified Niche Marketing in the Lifestyle Business 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 Fenix: Diversified Niche Marketing in the Lifestyle Business 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 Fenix: Diversified Niche Marketing in the Lifestyle Business 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 Fenix: Diversified Niche Marketing in the Lifestyle Business 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 Fenix: Diversified Niche Marketing in the Lifestyle Business 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 Fenix Multiniche needs to make to build a sustainable competitive advantage.