AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey

The case focuses on AccorHotels' ambitious digital transformation, aiming to put the customer back at the center of its strategy and operations. Responding to a powerful wave of digital disruptions in the hospitality ecosystem, from the emergence of review websites, online travel agents and active forums to the rise of new competitors such as Airbnb, the transformation entailed: (1) designing and implementing an innovative content marketing strategy (including online content creation or co-creation, curation and dissemination) (2) incorporating e-reputation as a core business objective, and (3) creating and/or adapting organizational structures - from management to operations - to support this new dynamic and maximize value creation. The case starts in Fall 2015, when Olivier Arnoux, SVP Customer Satisfaction at AccorHotels, and his team, are asked to devise an ambitious plan to address the new challenges facing major players in the hotel industry brought about by digital disruptions. It follows the decision-making process step by step, from (1) understanding the nature and impact of online content in the customer journey, to (2) building a strategic plan to integrate online insights into AccorHotels' core business objectives (in particular the importance of e-reputation), (3) redefining where and how value is created, and creating incentive structures aligned with the new objectives. Participants have multiple opportunities to put themselves in the shoes of the protagonists so as to understand the logic behind the decisions taken. What is novel is the systematic articulation of how digital and social media impact the customer journey, as well as the integration of online content into marketing strategy (i.e., content marketing) and organizational design (i.e., team structure, incentive system), underlining how embracing the digital revolution entails breaking traditional silos between functions such as marketing, strategy, finance and human resources.

Authors :: David Dubois, Chae InYoung, Joerg Niessing, Jean Wee

Topics :: Sales & Marketing

Tags :: Customer service, Customers, International business, Public relations, Social platforms, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey" written by David Dubois, Chae InYoung, Joerg Niessing, Jean Wee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Accorhotels Content facing as an external strategic factors. Some of the topics covered in AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey case study are - Strategic Management Strategies, Customer service, Customers, International business, Public relations, Social platforms and Sales & Marketing.

Some of the macro environment factors that can be used to understand the AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey casestudy better are - – increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, there is backlash against globalization, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, etc

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Introduction to SWOT Analysis of AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Accorhotels Content, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Accorhotels Content 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey can be done for the following purposes –
1. Strategic planning using facts provided in AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey case study
2. Improving business portfolio management of Accorhotels Content
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 Accorhotels Content

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Strengths AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Accorhotels Content in AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey Harvard Business Review case study are -

Organizational Resilience of Accorhotels Content

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

Ability to lead change in Sales & Marketing field

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

Ability to recruit top talent

– Accorhotels Content is one of the leading recruiters in the industry. Managers in the AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Sustainable margins compare to other players in Sales & Marketing industry

– AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey firm has clearly differentiated products in the market place. This has enabled Accorhotels Content to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Accorhotels Content to invest into research and development (R&D) and innovation.

Innovation driven organization

– Accorhotels Content is one of the most innovative firm in sector. Manager in AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

High switching costs

– The high switching costs that Accorhotels Content 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.

Learning organization

- Accorhotels Content 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 Accorhotels Content is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

High brand equity

– Accorhotels Content has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Accorhotels Content to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Training and development

– Accorhotels Content has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey 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.

Strong track record of project management

– Accorhotels Content is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Diverse revenue streams

– Accorhotels Content is present in almost all the verticals within the industry. This has provided firm in AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey 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.

Effective Research and Development (R&D)

– Accorhotels Content 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 AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

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Weaknesses AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey are -

No frontier risks strategy

– After analyzing the HBR case study AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey, 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.

High operating costs

– Compare to the competitors, firm in the HBR case study AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey 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 Accorhotels Content 's lucrative customers.

Interest costs

– Compare to the competition, Accorhotels Content 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.

Capital Spending Reduction

– Even during the low interest decade, Accorhotels Content 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Accorhotels Content 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.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey, in the dynamic environment Accorhotels Content has struggled to respond to the nimble upstart competition. Accorhotels Content has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High bargaining power of channel partners

– Because of the regulatory requirements, David Dubois, Chae InYoung, Joerg Niessing, Jean Wee suggests that, Accorhotels Content 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.

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 Accorhotels Content supply chain. Even after few cautionary changes mentioned in the HBR case study - AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Accorhotels Content vulnerable to further global disruptions in South East Asia.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey, it seems that the employees of Accorhotels Content 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.

Increasing silos among functional specialists

– The organizational structure of Accorhotels Content is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Accorhotels Content needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Accorhotels Content to focus more on services rather than just following the product oriented approach.

Skills based hiring

– The stress on hiring functional specialists at Accorhotels Content 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.

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Opportunities AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey | 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 AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey are -

Reforming the budgeting process

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

Learning at scale

– Online learning technologies has now opened space for Accorhotels Content 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Accorhotels Content is facing challenges because of the dominance of functional experts in the organization. AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey 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.

Developing new processes and practices

– Accorhotels Content 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.

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. Accorhotels Content can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Accorhotels Content to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Low interest rates

– Even though inflation is raising its head in most developed economies, Accorhotels Content 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Accorhotels Content 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Accorhotels Content can use these opportunities to build new business models that can help the communities that Accorhotels Content operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.

Better consumer reach

– The expansion of the 5G network will help Accorhotels Content to increase its market reach. Accorhotels Content 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. Accorhotels Content can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Building a culture of innovation

– managers at Accorhotels Content 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.

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Threats AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey are -

Stagnating economy with rate increase

– Accorhotels Content 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.

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.

Increasing wage structure of Accorhotels Content

– 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 Accorhotels Content.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey, Accorhotels Content 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 .

Technology acceleration in Forth Industrial Revolution

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

Easy access to finance

– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Accorhotels Content can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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. Accorhotels Content 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.

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 Accorhotels Content.

Regulatory challenges

– Accorhotels Content 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.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Accorhotels Content needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.

Consumer confidence and its impact on Accorhotels Content 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.

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.

Trade war between China and United States

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

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Weighted SWOT Analysis of AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey 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 AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey 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 AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey 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 AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey 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 AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey 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 Accorhotels Content needs to make to build a sustainable competitive advantage.

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