Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Black & Decker Corp.: Spacemaker Plus Coffeemaker (B)
Describes the highly successful recall of the Black & Decker Spacemaker Plus Coffeemaker. Objectives include: 1) factors in product recall effectiveness and success, 2) the use of direct marketing in product recall, 3) the role of public relations in product recall, and 4) impact of product recalls on product brands.
Swot Analysis of "Black & Decker Corp.: Spacemaker Plus Coffeemaker (B)" written by N. Craig Smith includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Recall Spacemaker facing as an external strategic factors. Some of the topics covered in Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) case study are - Strategic Management Strategies, Crisis management, Ethics, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) casestudy better are - – central banks are concerned over increasing inflation, wage bills are increasing, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models,
supply chains are disrupted by pandemic , geopolitical disruptions, etc
Introduction to SWOT Analysis of Black & Decker Corp.: Spacemaker Plus Coffeemaker (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Recall Spacemaker, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Recall Spacemaker 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 Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) can be done for the following purposes –
1. Strategic planning using facts provided in Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) case study
2. Improving business portfolio management of Recall Spacemaker
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 Recall Spacemaker
Strengths Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Recall Spacemaker in Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) Harvard Business Review case study are -
Effective Research and Development (R&D)
– Recall Spacemaker 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 Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Sustainable margins compare to other players in Sales & Marketing industry
– Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) firm has clearly differentiated products in the market place. This has enabled Recall Spacemaker to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Recall Spacemaker to invest into research and development (R&D) and innovation.
Analytics focus
– Recall Spacemaker 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 N. Craig Smith 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 recruit top talent
– Recall Spacemaker is one of the leading recruiters in the industry. Managers in the Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Recall Spacemaker 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.
Diverse revenue streams
– Recall Spacemaker is present in almost all the verticals within the industry. This has provided firm in Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) 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.
High brand equity
– Recall Spacemaker has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Recall Spacemaker to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Recall Spacemaker digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Recall Spacemaker 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.
Learning organization
- Recall Spacemaker 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 Recall Spacemaker is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Recall Spacemaker has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Recall Spacemaker 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.
Organizational Resilience of Recall Spacemaker
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Recall Spacemaker does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) are -
Capital Spending Reduction
– Even during the low interest decade, Recall Spacemaker 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.
Low market penetration in new markets
– Outside its home market of Recall Spacemaker, firm in the HBR case study Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) 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 Recall Spacemaker 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Black & Decker Corp.: Spacemaker Plus Coffeemaker (B), it seems that the employees of Recall Spacemaker 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Black & Decker Corp.: Spacemaker Plus Coffeemaker (B), is just above the industry average. Recall Spacemaker 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.
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 Recall Spacemaker supply chain. Even after few cautionary changes mentioned in the HBR case study - Black & Decker Corp.: Spacemaker Plus Coffeemaker (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Recall Spacemaker vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Recall Spacemaker 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 Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) 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 Recall Spacemaker has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Black & Decker Corp.: Spacemaker Plus Coffeemaker (B), in the dynamic environment Recall Spacemaker has struggled to respond to the nimble upstart competition. Recall Spacemaker has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Recall Spacemaker products
– To increase the profitability and margins on the products, Recall Spacemaker needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Recall Spacemaker is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) | 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 Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) are -
Buying journey improvements
– Recall Spacemaker can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) 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.
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. Recall Spacemaker 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. Recall Spacemaker 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.
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 Recall Spacemaker 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.
Developing new processes and practices
– Recall Spacemaker 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.
Learning at scale
– Online learning technologies has now opened space for Recall Spacemaker 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Recall Spacemaker can use these opportunities to build new business models that can help the communities that Recall Spacemaker operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Recall Spacemaker is facing challenges because of the dominance of functional experts in the organization. Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Recall Spacemaker 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.
Better consumer reach
– The expansion of the 5G network will help Recall Spacemaker to increase its market reach. Recall Spacemaker 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.
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. Recall Spacemaker can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Recall Spacemaker 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.
Using analytics as competitive advantage
– Recall Spacemaker 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 Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Recall Spacemaker to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Recall Spacemaker can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) are -
Regulatory challenges
– Recall Spacemaker 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Recall Spacemaker with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Recall Spacemaker has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Recall Spacemaker 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Recall Spacemaker 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 Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) .
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 Recall Spacemaker business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Recall Spacemaker 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.
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 Recall Spacemaker.
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.
Increasing wage structure of Recall Spacemaker
– 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 Recall Spacemaker.
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. Recall Spacemaker can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Recall Spacemaker needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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 Recall Spacemaker in the Sales & Marketing sector and impact the bottomline of the organization.
Environmental challenges
– Recall Spacemaker 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. Recall Spacemaker can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Weighted SWOT Analysis of Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) 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 Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) 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 Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) 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 Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) 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 Black & Decker Corp.: Spacemaker Plus Coffeemaker (B) 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 Recall Spacemaker needs to make to build a sustainable competitive advantage.
