"Do It Show": A New Mobile Communications Service in Korea SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of "Do It Show": A New Mobile Communications Service in Korea
This case presents points of contention and issues in the brand launch of a new telecommunication service of KTF, one of Korea's mobile telecommunication companies. As the second-place player in the 2G service market, which offered voice and text-messaging services, KTF decided to be the number one player in the new 3G service market, which offered stable video communication and high-speed data transmission as well as voice and text-messaging services. To do so, KTF developed a new brand, called "SHOW," and implemented various integrated marketing communication (IMC) strategies to attract customers. After only four months since its launch, KTF had successfully attracted more than one million members. Several critical points for successfully launching a new brand in the mobile telecommunication service can be determined from this case. The introduction highlights the success of KTF's new brand launch strategy. Then the mobile telecommunication service market situation in South Korea is summarized. The next section provides a brief explanation of KTF and its new brand launch strategy in the 3G service market, covering topics from the market survey for 3G service to the brand-building processes. This is followed by an examination of how KTF used marketing-integrated communication for its new SHOW 3G service brand. Finally, the competitor's reaction to KTF's successful brand launch is summarized.
Swot Analysis of ""Do It Show": A New Mobile Communications Service in Korea" written by Youngchan Kim, Changjo Yoo includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ktf 3g facing as an external strategic factors. Some of the topics covered in "Do It Show": A New Mobile Communications Service in Korea case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the "Do It Show": A New Mobile Communications Service in Korea casestudy better are - – increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, there is increasing trade war between United States & China,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, etc
Introduction to SWOT Analysis of "Do It Show": A New Mobile Communications Service in Korea
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in "Do It Show": A New Mobile Communications Service in Korea case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ktf 3g, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ktf 3g 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 "Do It Show": A New Mobile Communications Service in Korea can be done for the following purposes –
1. Strategic planning using facts provided in "Do It Show": A New Mobile Communications Service in Korea case study
2. Improving business portfolio management of Ktf 3g
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 Ktf 3g
Strengths "Do It Show": A New Mobile Communications Service in Korea | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ktf 3g in "Do It Show": A New Mobile Communications Service in Korea Harvard Business Review case study are -
Learning organization
- Ktf 3g 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 Ktf 3g is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in "Do It Show": A New Mobile Communications Service in Korea Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Ktf 3g in the sector have low bargaining power. "Do It Show": A New Mobile Communications Service in Korea has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ktf 3g to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Ktf 3g 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.
Superior customer experience
– The customer experience strategy of Ktf 3g in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Ktf 3g is one of the leading recruiters in the industry. Managers in the "Do It Show": A New Mobile Communications Service in Korea are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Ktf 3g
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ktf 3g does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Ktf 3g 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 "Do It Show": A New Mobile Communications Service in Korea - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Ktf 3g is one of the most innovative firm in sector. Manager in "Do It Show": A New Mobile Communications Service in Korea 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
– Ktf 3g has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ktf 3g 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.
Analytics focus
– Ktf 3g 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 Youngchan Kim, Changjo Yoo 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 lead change in Sales & Marketing field
– Ktf 3g 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 Ktf 3g in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Ktf 3g 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 "Do It Show": A New Mobile Communications Service in Korea HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses "Do It Show": A New Mobile Communications Service in Korea | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of "Do It Show": A New Mobile Communications Service in Korea are -
Skills based hiring
– The stress on hiring functional specialists at Ktf 3g 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Youngchan Kim, Changjo Yoo suggests that, Ktf 3g 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.
Products dominated business model
– Even though Ktf 3g 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 - "Do It Show": A New Mobile Communications Service in Korea should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study "Do It Show": A New Mobile Communications Service in Korea, is just above the industry average. Ktf 3g 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.
Need for greater diversity
– Ktf 3g 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.
Slow to strategic competitive environment developments
– As "Do It Show": A New Mobile Communications Service in Korea HBR case study mentions - Ktf 3g 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 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 Ktf 3g supply chain. Even after few cautionary changes mentioned in the HBR case study - "Do It Show": A New Mobile Communications Service in Korea, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ktf 3g vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Ktf 3g 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. Ktf 3g 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.
High operating costs
– Compare to the competitors, firm in the HBR case study "Do It Show": A New Mobile Communications Service in Korea 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 Ktf 3g 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study "Do It Show": A New Mobile Communications Service in Korea, in the dynamic environment Ktf 3g has struggled to respond to the nimble upstart competition. Ktf 3g has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Ktf 3g 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.
Opportunities "Do It Show": A New Mobile Communications Service in Korea | 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 "Do It Show": A New Mobile Communications Service in Korea are -
Building a culture of innovation
– managers at Ktf 3g 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.
Better consumer reach
– The expansion of the 5G network will help Ktf 3g to increase its market reach. Ktf 3g will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Ktf 3g 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
– Ktf 3g 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
– Ktf 3g 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ktf 3g 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.
Learning at scale
– Online learning technologies has now opened space for Ktf 3g 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.
Creating value in data economy
– The success of analytics program of Ktf 3g has opened avenues for new revenue streams for the organization in the industry. This can help Ktf 3g to build a more holistic ecosystem as suggested in the "Do It Show": A New Mobile Communications Service in Korea case study. Ktf 3g can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Ktf 3g 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ktf 3g can use these opportunities to build new business models that can help the communities that Ktf 3g operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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. Ktf 3g 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. Ktf 3g 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ktf 3g 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 Ktf 3g to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ktf 3g can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats "Do It Show": A New Mobile Communications Service in Korea External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study "Do It Show": A New Mobile Communications Service in Korea are -
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.
High dependence on third party suppliers
– Ktf 3g 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ktf 3g with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study "Do It Show": A New Mobile Communications Service in Korea, Ktf 3g 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 .
Consumer confidence and its impact on Ktf 3g 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.
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. Ktf 3g 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.
Shortening product life cycle
– it is one of the major threat that Ktf 3g is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Ktf 3g
– 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 Ktf 3g.
Stagnating economy with rate increase
– Ktf 3g 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.
Environmental challenges
– Ktf 3g 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. Ktf 3g can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ktf 3g 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 "Do It Show": A New Mobile Communications Service in Korea .
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 Ktf 3g.
Weighted SWOT Analysis of "Do It Show": A New Mobile Communications Service in Korea 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 "Do It Show": A New Mobile Communications Service in Korea 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 "Do It Show": A New Mobile Communications Service in Korea 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 "Do It Show": A New Mobile Communications Service in Korea 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 "Do It Show": A New Mobile Communications Service in Korea 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 Ktf 3g needs to make to build a sustainable competitive advantage.
