Placing Trust at the Center of Your Internet Strategy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Placing Trust at the Center of Your Internet Strategy
This is an MIT Sloan Management Review article. When consumers visit a retail Web site, how do they know that the information describing the products or services they want to buy is accurate and unbiased? How do they know that their order will be fulfilled correctly and on time or that their financial records, purchasing, and Web-viewing habits will be protected from prying eyes? The answer is that often they don't. In most cases, consumers base their purchasing decisions largely on trust. As consumers become more savvy about the Internet, the authors contend that they will insist on doing business with Web companies they trust. While the Internet enables consumers to research competing companies, products, and services, most manufacturers design and deploy their Web sites as if such information were largely unavailable. They promote their products in a biased way--using high-pressure sales tactics that do little to inspire trust--while neglecting to provide consumers with the tools they need to make informed purchasing decisions. According to the authors, Web trust is built in a three-stage cumulative process that establishes (1) trust in the Internet and the specific Web site, (2) trust in the information displayed, and (3) trust in delivery fulfillment and service. The authors review current trust-building practices used on the Web. They propose the use of new, software-enabled advisers that communicate with customers to discern their needs and provide unbiased recommendations. A Web site featuring virtual advisers created by the authors showed that 75% of the site's visitors trusted these software-enable advisers more than the dealers from whom they last purchased vehicles. The companies that earn real profits in the world of Internet marketing will be trust generators selling products that deliver the best value in a complete, unbiased, competitive comparison.
Authors :: Glen L. Urban, Fareena Sultan, William J. Qualls
Swot Analysis of "Placing Trust at the Center of Your Internet Strategy" written by Glen L. Urban, Fareena Sultan, William J. Qualls includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Trust Web facing as an external strategic factors. Some of the topics covered in Placing Trust at the Center of Your Internet Strategy case study are - Strategic Management Strategies, Competitive strategy, Customers, Financial management, Internet and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Placing Trust at the Center of Your Internet Strategy casestudy better are - – challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, there is backlash against globalization, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, geopolitical disruptions,
banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Placing Trust at the Center of Your Internet Strategy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Placing Trust at the Center of Your Internet Strategy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Trust Web, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Trust Web 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 Placing Trust at the Center of Your Internet Strategy can be done for the following purposes –
1. Strategic planning using facts provided in Placing Trust at the Center of Your Internet Strategy case study
2. Improving business portfolio management of Trust Web
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 Trust Web
Strengths Placing Trust at the Center of Your Internet Strategy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Trust Web in Placing Trust at the Center of Your Internet Strategy Harvard Business Review case study are -
Highly skilled collaborators
– Trust Web 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 Placing Trust at the Center of Your Internet Strategy HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Trust Web
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Trust Web does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Placing Trust at the Center of Your Internet Strategy 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.
Cross disciplinary teams
– Horizontal connected teams at the Trust Web 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
- Trust Web 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 Trust Web is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Placing Trust at the Center of Your Internet Strategy Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Trust Web has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Placing Trust at the Center of Your Internet Strategy 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Trust Web digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Trust Web 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.
Analytics focus
– Trust Web 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 Glen L. Urban, Fareena Sultan, William J. Qualls 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
– Trust Web is one of the leading recruiters in the industry. Managers in the Placing Trust at the Center of Your Internet Strategy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Trust Web has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Trust Web 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.
Ability to lead change in Sales & Marketing field
– Trust Web 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 Trust Web in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Trust Web 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 Placing Trust at the Center of Your Internet Strategy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Placing Trust at the Center of Your Internet Strategy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Placing Trust at the Center of Your Internet Strategy are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Placing Trust at the Center of Your Internet Strategy, in the dynamic environment Trust Web has struggled to respond to the nimble upstart competition. Trust Web has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Placing Trust at the Center of Your Internet Strategy 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 Trust Web has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Trust Web 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.
Low market penetration in new markets
– Outside its home market of Trust Web, firm in the HBR case study Placing Trust at the Center of Your Internet Strategy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Placing Trust at the Center of Your Internet Strategy, is just above the industry average. Trust Web 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Placing Trust at the Center of Your Internet Strategy, it seems that the employees of Trust Web 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.
Lack of clear differentiation of Trust Web products
– To increase the profitability and margins on the products, Trust Web needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Trust Web has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Placing Trust at the Center of Your Internet Strategy should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Placing Trust at the Center of Your Internet Strategy 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 Trust Web 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Glen L. Urban, Fareena Sultan, William J. Qualls suggests that, Trust Web 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.
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 Trust Web supply chain. Even after few cautionary changes mentioned in the HBR case study - Placing Trust at the Center of Your Internet Strategy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Trust Web vulnerable to further global disruptions in South East Asia.
Opportunities Placing Trust at the Center of Your Internet Strategy | 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 Placing Trust at the Center of Your Internet Strategy are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Trust Web can use these opportunities to build new business models that can help the communities that Trust Web operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Trust Web 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 Trust Web to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Trust Web 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Trust Web 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, Placing Trust at the Center of Your Internet Strategy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Trust Web 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.
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. Trust Web can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Trust Web 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.
Manufacturing automation
– Trust Web can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Better consumer reach
– The expansion of the 5G network will help Trust Web to increase its market reach. Trust Web 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Trust Web is facing challenges because of the dominance of functional experts in the organization. Placing Trust at the Center of Your Internet Strategy 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.
Using analytics as competitive advantage
– Trust Web 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 Placing Trust at the Center of Your Internet Strategy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Trust Web to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Trust Web can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Trust Web 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.
Threats Placing Trust at the Center of Your Internet Strategy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Placing Trust at the Center of Your Internet Strategy are -
High dependence on third party suppliers
– Trust Web 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 Trust Web
– 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 Trust Web.
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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Trust Web will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Placing Trust at the Center of Your Internet Strategy, Trust Web 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Trust Web 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 Placing Trust at the Center of Your Internet Strategy .
Environmental challenges
– Trust Web 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. Trust Web can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Technology acceleration in Forth Industrial Revolution
– Trust Web has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Trust Web 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.
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 Trust Web in the Sales & Marketing sector and impact the bottomline of the organization.
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. Trust Web needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Trust Web is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Trust Web with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Trust Web 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.
Weighted SWOT Analysis of Placing Trust at the Center of Your Internet Strategy 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 Placing Trust at the Center of Your Internet Strategy 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 Placing Trust at the Center of Your Internet Strategy 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 Placing Trust at the Center of Your Internet Strategy 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 Placing Trust at the Center of Your Internet Strategy 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 Trust Web needs to make to build a sustainable competitive advantage.