Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage

The resource-based view (RBV) of the firm has become a prominent management theory that firms can use to analyze resources as potential sources of competitive advantage. Theorists have suggested sponsorship of sport properties as one such resource, yet specific cases of sponsorship's role in a firm's achievement of a sustained advantage over competitors have yet to be explored. This article illuminates the case of Visa's longstanding global sponsorship of the Olympic Games, which was initiated and leveraged to counteract competitor American Express' advantage with global business travelers. Evidence is presented that supports Visa's achievement of a competitive advantage during the term of the sponsorship. The case is then used to develop a conceptual model based on the RBV to identify the key characteristics of sponsored properties capable of assisting the sponsoring firm in achieving a sustained competitive advantage. From a managerial perspective, the model is designed to assist marketing managers tasked with the identification and evaluation of potential sponsorship properties.

Authors :: Jonathan A. Jensen, Joe B. Cobbs, Brian A. Turner

Topics :: Sales & Marketing

Tags :: Competitive strategy, Marketing, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage" written by Jonathan A. Jensen, Joe B. Cobbs, Brian A. Turner includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sponsorship Advantage facing as an external strategic factors. Some of the topics covered in Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage case study are - Strategic Management Strategies, Competitive strategy, Marketing and Sales & Marketing.

Some of the macro environment factors that can be used to understand the Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage casestudy better are - – supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, there is backlash against globalization, increasing household debt because of falling income levels, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, wage bills are increasing, etc

---

---

---

---

Introduction to SWOT Analysis of Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sponsorship Advantage, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sponsorship Advantage 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 Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage can be done for the following purposes –
1. Strategic planning using facts provided in Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage case study
2. Improving business portfolio management of Sponsorship Advantage
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 Sponsorship Advantage

---

Strengths Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Sponsorship Advantage in Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage Harvard Business Review case study are -

Organizational Resilience of Sponsorship Advantage

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sponsorship Advantage does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Digital Transformation in Sales & Marketing segment

- digital transformation varies from industry to industry. For Sponsorship Advantage digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sponsorship Advantage 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.

Learning organization

- Sponsorship Advantage 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 Sponsorship Advantage is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Ability to lead change in Sales & Marketing field

– Sponsorship Advantage 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 Sponsorship Advantage in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Low bargaining power of suppliers

– Suppliers of Sponsorship Advantage in the sector have low bargaining power. Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sponsorship Advantage to manage not only supply disruptions but also source products at highly competitive prices.

Successful track record of launching new products

– Sponsorship Advantage has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sponsorship Advantage 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.

Effective Research and Development (R&D)

– Sponsorship Advantage 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 Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Highly skilled collaborators

– Sponsorship Advantage 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 Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Diverse revenue streams

– Sponsorship Advantage is present in almost all the verticals within the industry. This has provided firm in Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage 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.

Cross disciplinary teams

– Horizontal connected teams at the Sponsorship Advantage 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.

Ability to recruit top talent

– Sponsorship Advantage is one of the leading recruiters in the industry. Managers in the Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Innovation driven organization

– Sponsorship Advantage is one of the most innovative firm in sector. Manager in Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

---

---

Weaknesses Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage are -

Products dominated business model

– Even though Sponsorship Advantage 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 - Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage should strive to include more intangible value offerings along with its core products and services.

No frontier risks strategy

– After analyzing the HBR case study Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage, 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.

Low market penetration in new markets

– Outside its home market of Sponsorship Advantage, firm in the HBR case study Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Skills based hiring

– The stress on hiring functional specialists at Sponsorship Advantage 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 cash cycle compare to competitors

Sponsorship Advantage has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage 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 Sponsorship Advantage has relatively successful track record of launching new products.

High operating costs

– Compare to the competitors, firm in the HBR case study Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage 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 Sponsorship Advantage 's lucrative customers.

High bargaining power of channel partners

– Because of the regulatory requirements, Jonathan A. Jensen, Joe B. Cobbs, Brian A. Turner suggests that, Sponsorship Advantage 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.

Capital Spending Reduction

– Even during the low interest decade, Sponsorship Advantage 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.

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 Sponsorship Advantage supply chain. Even after few cautionary changes mentioned in the HBR case study - Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sponsorship Advantage vulnerable to further global disruptions in South East Asia.

Aligning sales with marketing

– It come across in the case study Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage 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 Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage can leverage the sales team experience to cultivate customer relationships as Sponsorship Advantage is planning to shift buying processes online.

---

Opportunities Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage | 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 Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage are -

Learning at scale

– Online learning technologies has now opened space for Sponsorship Advantage 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.

Building a culture of innovation

– managers at Sponsorship Advantage 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Sponsorship Advantage is facing challenges because of the dominance of functional experts in the organization. Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage 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.

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 Sponsorship Advantage in the consumer business. Now Sponsorship Advantage can target international markets with far fewer capital restrictions requirements than the existing system.

Leveraging digital technologies

– Sponsorship Advantage can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Creating value in data economy

– The success of analytics program of Sponsorship Advantage has opened avenues for new revenue streams for the organization in the industry. This can help Sponsorship Advantage to build a more holistic ecosystem as suggested in the Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage case study. Sponsorship Advantage can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Manufacturing automation

– Sponsorship Advantage 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.

Developing new processes and practices

– Sponsorship Advantage 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.

Better consumer reach

– The expansion of the 5G network will help Sponsorship Advantage to increase its market reach. Sponsorship Advantage 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Sponsorship Advantage can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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. Sponsorship Advantage can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Sponsorship Advantage 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Sponsorship Advantage 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.

---

Threats Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage are -

Regulatory challenges

– Sponsorship Advantage 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.

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. Sponsorship Advantage 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.

Increasing wage structure of Sponsorship Advantage

– 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 Sponsorship Advantage.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Sponsorship Advantage 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.

Environmental challenges

– Sponsorship Advantage 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. Sponsorship Advantage can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sponsorship Advantage 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 Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage, Sponsorship Advantage 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 Sponsorship Advantage demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

Technology acceleration in Forth Industrial Revolution

– Sponsorship Advantage has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Sponsorship Advantage 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.

High dependence on third party suppliers

– Sponsorship Advantage 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.

Shortening product life cycle

– it is one of the major threat that Sponsorship Advantage is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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.

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.

---

Weighted SWOT Analysis of Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage 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 Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage 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 Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage 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 Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage 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 Evaluating Sponsorship through the Lens of the Resource-Based View: The Potential for Sustained Competitive Advantage 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 Sponsorship Advantage needs to make to build a sustainable competitive advantage.

--- ---