ESMT's pitch to EAD Systems (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
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Case Study SWOT Analysis Solution
Case Study Description of ESMT's pitch to EAD Systems (B)
Around 6:00 p.m. on May 31, 2007, Urs MA?ller and Christoph Burger from ESMT European School of Management and Technology were getting prepared for the presentation. In about an hour they would present their proposal for an executive education program to the CEO of Energie aus Deutschland Systems (EAD Systems) and two of his senior HR managers. Sitting in the lobby of a hotel in western Germany next to the main entrance of the EAD Systems headquarters, Urs recalled the pitching process by scrolling through his notes. ESMT's pitch to EAD Systems" describes the efforts of ESMT European School of Management and Technology to acquire EAD Systems as a client for an executive education program. The case study comprises two parts, A and B, which allow comprehensively reviewing sales management in a professional services firm.
Swot Analysis of "ESMT's pitch to EAD Systems (B)" written by Urs Mueller, Johannes Habel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ead Esmt facing as an external strategic factors. Some of the topics covered in ESMT's pitch to EAD Systems (B) case study are - Strategic Management Strategies, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the ESMT's pitch to EAD Systems (B) casestudy better are - – increasing household debt because of falling income levels, there is backlash against globalization, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy,
technology disruption, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of ESMT's pitch to EAD Systems (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ESMT's pitch to EAD Systems (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ead Esmt, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ead Esmt 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 ESMT's pitch to EAD Systems (B) can be done for the following purposes –
1. Strategic planning using facts provided in ESMT's pitch to EAD Systems (B) case study
2. Improving business portfolio management of Ead Esmt
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 Ead Esmt
Strengths ESMT's pitch to EAD Systems (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ead Esmt in ESMT's pitch to EAD Systems (B) Harvard Business Review case study are -
Highly skilled collaborators
– Ead Esmt 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 ESMT's pitch to EAD Systems (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Ead Esmt is present in almost all the verticals within the industry. This has provided firm in ESMT's pitch to EAD Systems (B) 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Ead Esmt digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ead Esmt 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.
Successful track record of launching new products
– Ead Esmt has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ead Esmt 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.
Sustainable margins compare to other players in Sales & Marketing industry
– ESMT's pitch to EAD Systems (B) firm has clearly differentiated products in the market place. This has enabled Ead Esmt to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Ead Esmt to invest into research and development (R&D) and innovation.
Innovation driven organization
– Ead Esmt is one of the most innovative firm in sector. Manager in ESMT's pitch to EAD Systems (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Ead Esmt in the sector have low bargaining power. ESMT's pitch to EAD Systems (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ead Esmt to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Ead Esmt 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 ESMT's pitch to EAD Systems (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the ESMT's pitch to EAD Systems (B) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Analytics focus
– Ead Esmt 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 Urs Mueller, Johannes Habel 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.
Cross disciplinary teams
– Horizontal connected teams at the Ead Esmt 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.
Training and development
– Ead Esmt has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in ESMT's pitch to EAD Systems (B) 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.
Weaknesses ESMT's pitch to EAD Systems (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ESMT's pitch to EAD Systems (B) are -
No frontier risks strategy
– After analyzing the HBR case study ESMT's pitch to EAD Systems (B), 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study ESMT's pitch to EAD Systems (B), it seems that the employees of Ead Esmt don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Interest costs
– Compare to the competition, Ead Esmt 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.
Aligning sales with marketing
– It come across in the case study ESMT's pitch to EAD Systems (B) 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 ESMT's pitch to EAD Systems (B) can leverage the sales team experience to cultivate customer relationships as Ead Esmt is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Ead Esmt is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Ead Esmt needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ead Esmt to focus more on services rather than just following the product oriented approach.
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 Ead Esmt supply chain. Even after few cautionary changes mentioned in the HBR case study - ESMT's pitch to EAD Systems (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ead Esmt vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Ead Esmt, firm in the HBR case study ESMT's pitch to EAD Systems (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the ESMT's pitch to EAD Systems (B) 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 Ead Esmt has relatively successful track record of launching new products.
High cash cycle compare to competitors
Ead Esmt 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.
Need for greater diversity
– Ead Esmt 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.
High operating costs
– Compare to the competitors, firm in the HBR case study ESMT's pitch to EAD Systems (B) 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 Ead Esmt 's lucrative customers.
Opportunities ESMT's pitch to EAD Systems (B) | 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 ESMT's pitch to EAD Systems (B) are -
Buying journey improvements
– Ead Esmt can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. ESMT's pitch to EAD Systems (B) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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. Ead Esmt can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ead Esmt 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 Ead Esmt to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ead Esmt 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.
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. Ead Esmt 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, Ead Esmt can use these opportunities to build new business models that can help the communities that Ead Esmt operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Creating value in data economy
– The success of analytics program of Ead Esmt has opened avenues for new revenue streams for the organization in the industry. This can help Ead Esmt to build a more holistic ecosystem as suggested in the ESMT's pitch to EAD Systems (B) case study. Ead Esmt can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ead Esmt can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ead Esmt 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, ESMT's pitch to EAD Systems (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ead Esmt is facing challenges because of the dominance of functional experts in the organization. ESMT's pitch to EAD Systems (B) 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.
Better consumer reach
– The expansion of the 5G network will help Ead Esmt to increase its market reach. Ead Esmt 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.
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. Ead Esmt 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. Ead Esmt 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.
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 Ead Esmt in the consumer business. Now Ead Esmt can target international markets with far fewer capital restrictions requirements than the existing system.
Threats ESMT's pitch to EAD Systems (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ESMT's pitch to EAD Systems (B) are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study ESMT's pitch to EAD Systems (B), Ead Esmt 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 Ead Esmt
– 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 Ead Esmt.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ead Esmt 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 ESMT's pitch to EAD Systems (B) .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ead Esmt with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Ead Esmt business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Ead Esmt 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. Ead Esmt 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.
Environmental challenges
– Ead Esmt 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. Ead Esmt can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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 Ead Esmt.
Shortening product life cycle
– it is one of the major threat that Ead Esmt 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.
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 Ead Esmt in the Sales & Marketing sector and impact the bottomline of the organization.
Regulatory challenges
– Ead Esmt 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 ESMT's pitch to EAD Systems (B) 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 ESMT's pitch to EAD Systems (B) 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 ESMT's pitch to EAD Systems (B) 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 ESMT's pitch to EAD Systems (B) 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 ESMT's pitch to EAD Systems (B) 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 Ead Esmt needs to make to build a sustainable competitive advantage.
