Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version
Lotus Development Corp., the number one microsoftware firm has traditionally sold to its customers through a distributor-retail dealer network. In early 1986, the company is considering the option of selling direct to large corporate customers. Students are expected to analyze the pros and cons of such a change in making their decisions.
Swot Analysis of "Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version" written by V. Kasturi Rangan, Douglas R. Scott includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lotus Microsoftware facing as an external strategic factors. Some of the topics covered in Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version case study are - Strategic Management Strategies, Sales, Supply chain, Technology and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version casestudy better are - – increasing commodity prices, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing government debt because of Covid-19 spendings, there is backlash against globalization, etc
Introduction to SWOT Analysis of Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lotus Microsoftware, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lotus Microsoftware 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 Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version case study
2. Improving business portfolio management of Lotus Microsoftware
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 Lotus Microsoftware
Strengths Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lotus Microsoftware in Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version Harvard Business Review case study are -
High switching costs
– The high switching costs that Lotus Microsoftware 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.
Diverse revenue streams
– Lotus Microsoftware is present in almost all the verticals within the industry. This has provided firm in Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version 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
– Lotus Microsoftware has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Lotus Microsoftware to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Sales & Marketing field
– Lotus Microsoftware 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 Lotus Microsoftware in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Lotus Microsoftware is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Lotus Microsoftware in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Lotus Microsoftware 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.
Learning organization
- Lotus Microsoftware 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 Lotus Microsoftware is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Lotus Microsoftware has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lotus Microsoftware 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.
Operational resilience
– The operational resilience strategy in the Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version 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.
Ability to recruit top talent
– Lotus Microsoftware is one of the leading recruiters in the industry. Managers in the Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Lotus Microsoftware 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 V. Kasturi Rangan, Douglas R. Scott 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.
Weaknesses Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version are -
No frontier risks strategy
– After analyzing the HBR case study Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version, 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.
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 Lotus Microsoftware supply chain. Even after few cautionary changes mentioned in the HBR case study - Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Lotus Microsoftware vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version, in the dynamic environment Lotus Microsoftware has struggled to respond to the nimble upstart competition. Lotus Microsoftware has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Lotus Microsoftware 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lotus Microsoftware is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, V. Kasturi Rangan, Douglas R. Scott suggests that, Lotus Microsoftware 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, Lotus Microsoftware 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version, is just above the industry average. Lotus Microsoftware 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.
Skills based hiring
– The stress on hiring functional specialists at Lotus Microsoftware 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.
Increasing silos among functional specialists
– The organizational structure of Lotus Microsoftware is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Lotus Microsoftware needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Lotus Microsoftware to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Lotus Microsoftware, firm in the HBR case study Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version | 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 Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Lotus Microsoftware can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lotus Microsoftware 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 Lotus Microsoftware to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Lotus Microsoftware 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 Lotus Microsoftware 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.
Buying journey improvements
– Lotus Microsoftware can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Lotus Microsoftware 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Lotus Microsoftware can use these opportunities to build new business models that can help the communities that Lotus Microsoftware operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Leveraging digital technologies
– Lotus Microsoftware 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.
Creating value in data economy
– The success of analytics program of Lotus Microsoftware has opened avenues for new revenue streams for the organization in the industry. This can help Lotus Microsoftware to build a more holistic ecosystem as suggested in the Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version case study. Lotus Microsoftware can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Lotus Microsoftware to increase its market reach. Lotus Microsoftware 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.
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 Lotus Microsoftware in the consumer business. Now Lotus Microsoftware can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Lotus Microsoftware 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
– Lotus Microsoftware 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 Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Lotus Microsoftware to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version are -
Shortening product life cycle
– it is one of the major threat that Lotus Microsoftware is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Lotus Microsoftware 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.
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. Lotus Microsoftware needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version, Lotus Microsoftware 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 .
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.
Stagnating economy with rate increase
– Lotus Microsoftware 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.
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 Lotus Microsoftware in the Sales & Marketing sector and impact the bottomline of the organization.
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 Lotus Microsoftware business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Lotus Microsoftware 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.
Consumer confidence and its impact on Lotus Microsoftware 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.
Technology acceleration in Forth Industrial Revolution
– Lotus Microsoftware has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Lotus Microsoftware 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 wage structure of Lotus Microsoftware
– 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 Lotus Microsoftware.
Weighted SWOT Analysis of Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version 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 Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version 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 Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version 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 Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version 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 Lotus Development Corp. Channel Choice: Direct vs. Distribution, Spanish Version 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 Lotus Microsoftware needs to make to build a sustainable competitive advantage.
