Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights
A senior product manager for a telecommunications company has been asked to propose ideas for generating new revenue from video gamers who use his company's Internet services. The manager has commissioned the development of "experience maps" for three subsegments within the gamer segment. The experience maps, which are reproduced in the case, provide students with an opportunity to generate customer insights based on real qualitative data.
Authors :: Kent Grayson, Sachin Waikar, Gene Smith
Swot Analysis of "Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights" written by Kent Grayson, Sachin Waikar, Gene Smith includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Maps Gamers facing as an external strategic factors. Some of the topics covered in Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights case study are - Strategic Management Strategies, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models,
increasing commodity prices, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Maps Gamers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Maps Gamers 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 Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights can be done for the following purposes –
1. Strategic planning using facts provided in Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights case study
2. Improving business portfolio management of Maps Gamers
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 Maps Gamers
Strengths Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Maps Gamers in Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights Harvard Business Review case study are -
Sustainable margins compare to other players in Sales & Marketing industry
– Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights firm has clearly differentiated products in the market place. This has enabled Maps Gamers to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Maps Gamers to invest into research and development (R&D) and innovation.
High brand equity
– Maps Gamers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Maps Gamers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Maps Gamers 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 Kent Grayson, Sachin Waikar, Gene 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Maps Gamers digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Maps Gamers 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.
Innovation driven organization
– Maps Gamers is one of the most innovative firm in sector. Manager in Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Maps Gamers has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Maps Gamers 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.
Learning organization
- Maps Gamers 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 Maps Gamers is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Maps Gamers has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights 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.
Ability to lead change in Sales & Marketing field
– Maps Gamers 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 Maps Gamers in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Maps Gamers 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.
Low bargaining power of suppliers
– Suppliers of Maps Gamers in the sector have low bargaining power. Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Maps Gamers to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Maps Gamers is present in almost all the verticals within the industry. This has provided firm in Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights 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.
Weaknesses Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights are -
Capital Spending Reduction
– Even during the low interest decade, Maps Gamers 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.
Slow to strategic competitive environment developments
– As Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights HBR case study mentions - Maps Gamers 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.
Lack of clear differentiation of Maps Gamers products
– To increase the profitability and margins on the products, Maps Gamers needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights, is just above the industry average. Maps Gamers 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.
Low market penetration in new markets
– Outside its home market of Maps Gamers, firm in the HBR case study Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Maps Gamers 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. Maps Gamers 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.
No frontier risks strategy
– After analyzing the HBR case study Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights, 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.
Need for greater diversity
– Maps Gamers has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights, in the dynamic environment Maps Gamers has struggled to respond to the nimble upstart competition. Maps Gamers 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 Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights 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 Maps Gamers has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Maps Gamers 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.
Opportunities Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights | 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 Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights are -
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 Maps Gamers in the consumer business. Now Maps Gamers can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Maps Gamers 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Maps Gamers 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, Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Maps Gamers 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.
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. Maps Gamers 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. Maps Gamers 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.
Manufacturing automation
– Maps Gamers 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.
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. Maps Gamers can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Maps Gamers can use these opportunities to build new business models that can help the communities that Maps Gamers operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Leveraging digital technologies
– Maps Gamers 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.
Loyalty marketing
– Maps Gamers 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.
Better consumer reach
– The expansion of the 5G network will help Maps Gamers to increase its market reach. Maps Gamers 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.
Building a culture of innovation
– managers at Maps Gamers 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.
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. Maps Gamers can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights are -
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 Maps Gamers business can come under increasing regulations regarding data privacy, data security, etc.
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 Maps Gamers.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Maps Gamers 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.
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. Maps Gamers 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.
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.
Consumer confidence and its impact on Maps Gamers 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.
Environmental challenges
– Maps Gamers 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. Maps Gamers can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Shortening product life cycle
– it is one of the major threat that Maps Gamers is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights, Maps Gamers 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 .
High dependence on third party suppliers
– Maps Gamers 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 Maps Gamers
– 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 Maps Gamers.
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.
Regulatory challenges
– Maps Gamers 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.
Weighted SWOT Analysis of Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights 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 Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights 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 Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights 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 Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights 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 Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights 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 Maps Gamers needs to make to build a sustainable competitive advantage.