Case Study Description of VERITAS 1999 (A): Integrating Sales Forces
In October 1998, VERITAS and Seagate's Network Storage and Management Group, which both sold data storage management software, agreed to merge. In terms of employee size and revenues, it was nearly a merger of equals. Until regulatory approval for the merger was granted from the government under the Hart-Scott-Rodino (HSR) Act, the two companies could share only public information, initially limiting due diligence. The companies received HSR approval on December 4, 1998. It had been clear from public information that the two companies offered different products, sold through different channels of distribution, and captured two different customer segments of the market. After all, these differences were regarded as complements and the major justification behind the merger. However, what was not so apparent until HSR approval was the clash in sales force cultures. Paul Sallaberry, an executive at pre-merger VERITAS, assumed the role of executive vice-president of worldwide sales and marketing after the merger. Sallaberry needed to design a sales force integration plan that would take the company to billions of dollars in sales within the next few years without sacrificing any short-term sales momentum. To do so, he had to resolve the issues at hand: culture clashes, disparate compensation structures, overlapping territories, and redundant management positions.
Swot Analysis of "VERITAS 1999 (A): Integrating Sales Forces" written by Mark Leslie, James Lattin, Erin Yurday includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hsr Veritas facing as an external strategic factors. Some of the topics covered in VERITAS 1999 (A): Integrating Sales Forces case study are - Strategic Management Strategies, Marketing, Mergers & acquisitions, Organizational culture, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the VERITAS 1999 (A): Integrating Sales Forces casestudy better are - – technology disruption, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing commodity prices, increasing energy prices, increasing transportation and logistics costs, there is backlash against globalization,
geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of VERITAS 1999 (A): Integrating Sales Forces
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in VERITAS 1999 (A): Integrating Sales Forces case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hsr Veritas, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hsr Veritas 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 VERITAS 1999 (A): Integrating Sales Forces can be done for the following purposes –
1. Strategic planning using facts provided in VERITAS 1999 (A): Integrating Sales Forces case study
2. Improving business portfolio management of Hsr Veritas
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 Hsr Veritas
Strengths VERITAS 1999 (A): Integrating Sales Forces | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hsr Veritas in VERITAS 1999 (A): Integrating Sales Forces Harvard Business Review case study are -
Successful track record of launching new products
– Hsr Veritas has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hsr Veritas 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 recruit top talent
– Hsr Veritas is one of the leading recruiters in the industry. Managers in the VERITAS 1999 (A): Integrating Sales Forces are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Hsr Veritas in the sector have low bargaining power. VERITAS 1999 (A): Integrating Sales Forces has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hsr Veritas to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Hsr Veritas 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.
Superior customer experience
– The customer experience strategy of Hsr Veritas in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Sales & Marketing industry
– VERITAS 1999 (A): Integrating Sales Forces firm has clearly differentiated products in the market place. This has enabled Hsr Veritas to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Hsr Veritas to invest into research and development (R&D) and innovation.
High brand equity
– Hsr Veritas has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hsr Veritas to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Hsr Veritas 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.
Organizational Resilience of Hsr Veritas
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hsr Veritas does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Hsr Veritas 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 VERITAS 1999 (A): Integrating Sales Forces - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Hsr Veritas 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 Mark Leslie, James Lattin, Erin Yurday 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.
Innovation driven organization
– Hsr Veritas is one of the most innovative firm in sector. Manager in VERITAS 1999 (A): Integrating Sales Forces Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses VERITAS 1999 (A): Integrating Sales Forces | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of VERITAS 1999 (A): Integrating Sales Forces are -
Interest costs
– Compare to the competition, Hsr Veritas has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
No frontier risks strategy
– After analyzing the HBR case study VERITAS 1999 (A): Integrating Sales Forces, 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Hsr Veritas 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.
Low market penetration in new markets
– Outside its home market of Hsr Veritas, firm in the HBR case study VERITAS 1999 (A): Integrating Sales Forces needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Hsr Veritas products
– To increase the profitability and margins on the products, Hsr Veritas needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Hsr Veritas supply chain. Even after few cautionary changes mentioned in the HBR case study - VERITAS 1999 (A): Integrating Sales Forces, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hsr Veritas vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study VERITAS 1999 (A): Integrating Sales Forces that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case VERITAS 1999 (A): Integrating Sales Forces can leverage the sales team experience to cultivate customer relationships as Hsr Veritas is planning to shift buying processes online.
Products dominated business model
– Even though Hsr Veritas 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 - VERITAS 1999 (A): Integrating Sales Forces should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Hsr Veritas 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. Hsr Veritas 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.
Slow to strategic competitive environment developments
– As VERITAS 1999 (A): Integrating Sales Forces HBR case study mentions - Hsr Veritas takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High bargaining power of channel partners
– Because of the regulatory requirements, Mark Leslie, James Lattin, Erin Yurday suggests that, Hsr Veritas 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.
Opportunities VERITAS 1999 (A): Integrating Sales Forces | 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 VERITAS 1999 (A): Integrating Sales Forces are -
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. Hsr Veritas can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hsr Veritas 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, VERITAS 1999 (A): Integrating Sales Forces, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Hsr Veritas 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.
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. Hsr Veritas 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. Hsr Veritas 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hsr Veritas is facing challenges because of the dominance of functional experts in the organization. VERITAS 1999 (A): Integrating Sales Forces 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.
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. Hsr Veritas can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Hsr Veritas has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Manufacturing automation
– Hsr Veritas 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.
Creating value in data economy
– The success of analytics program of Hsr Veritas has opened avenues for new revenue streams for the organization in the industry. This can help Hsr Veritas to build a more holistic ecosystem as suggested in the VERITAS 1999 (A): Integrating Sales Forces case study. Hsr Veritas can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hsr Veritas 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.
Better consumer reach
– The expansion of the 5G network will help Hsr Veritas to increase its market reach. Hsr Veritas 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 Hsr Veritas in the consumer business. Now Hsr Veritas can target international markets with far fewer capital restrictions requirements than the existing system.
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 Hsr Veritas 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.
Threats VERITAS 1999 (A): Integrating Sales Forces External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study VERITAS 1999 (A): Integrating Sales Forces are -
Environmental challenges
– Hsr Veritas 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. Hsr Veritas can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Technology acceleration in Forth Industrial Revolution
– Hsr Veritas has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Hsr Veritas 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.
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. Hsr Veritas 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.
High dependence on third party suppliers
– Hsr Veritas 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study VERITAS 1999 (A): Integrating Sales Forces, Hsr Veritas 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 wage structure of Hsr Veritas
– 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 Hsr Veritas.
Shortening product life cycle
– it is one of the major threat that Hsr Veritas is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hsr Veritas 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 VERITAS 1999 (A): Integrating Sales Forces .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hsr Veritas with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hsr Veritas 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 Hsr Veritas in the Sales & Marketing sector and impact the bottomline of the organization.
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. Hsr Veritas 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. Hsr Veritas needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of VERITAS 1999 (A): Integrating Sales Forces 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 VERITAS 1999 (A): Integrating Sales Forces 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 VERITAS 1999 (A): Integrating Sales Forces 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 VERITAS 1999 (A): Integrating Sales Forces 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 VERITAS 1999 (A): Integrating Sales Forces 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 Hsr Veritas needs to make to build a sustainable competitive advantage.
