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Jabong.com: Balancing the Demands of Customers and Suppliers SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Jabong.com: Balancing the Demands of Customers and Suppliers


Jade eServices Pvt. Limited (Jabong), an e-retailer of fashion products in India, regularly had to balance conflicting expectations from its supplier brands and consumers. The discounts that e-retailers had to offer to consumers to generate sufficient sales resulted in brand dilution, which compelled these brands to avoid the online channel. After allowing large discounts on Jabong's website for two years, Puma, a major international sports shoe brand, decided to stop discounting product lines that were contributing to 14 per cent of Jabong's footwear sales. Puma products helped to attract new customers, and Puma's decision had the potential to affect the commercial terms offered by other footwear brands, which would have even more impact on Jabong. Jabong's director of sports apparel knew that he was unlikely to meet the required growth figures without discounts on Puma's products. He needed a new strategy to compensate for Puma's withdrawal of discounting options, and he needed it immediately. Jaydeep Mukherjee is affiliated with Management Development Institute.

Authors :: Jaydeep Mukherjee, Punit Bhardwaj

Topics :: Sales & Marketing

Tags :: , SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Jabong.com: Balancing the Demands of Customers and Suppliers" written by Jaydeep Mukherjee, Punit Bhardwaj includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jabong's Puma's facing as an external strategic factors. Some of the topics covered in Jabong.com: Balancing the Demands of Customers and Suppliers case study are - Strategic Management Strategies, and Sales & Marketing.


Some of the macro environment factors that can be used to understand the Jabong.com: Balancing the Demands of Customers and Suppliers casestudy better are - – geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, etc



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Introduction to SWOT Analysis of Jabong.com: Balancing the Demands of Customers and Suppliers


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jabong.com: Balancing the Demands of Customers and Suppliers case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jabong's Puma's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jabong's Puma's 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 Jabong.com: Balancing the Demands of Customers and Suppliers can be done for the following purposes –
1. Strategic planning using facts provided in Jabong.com: Balancing the Demands of Customers and Suppliers case study
2. Improving business portfolio management of Jabong's Puma's
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 Jabong's Puma's




Strengths Jabong.com: Balancing the Demands of Customers and Suppliers | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Jabong's Puma's in Jabong.com: Balancing the Demands of Customers and Suppliers Harvard Business Review case study are -

Digital Transformation in Sales & Marketing segment

- digital transformation varies from industry to industry. For Jabong's Puma's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jabong's Puma's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Innovation driven organization

– Jabong's Puma's is one of the most innovative firm in sector. Manager in Jabong.com: Balancing the Demands of Customers and Suppliers Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Organizational Resilience of Jabong's Puma's

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

Training and development

– Jabong's Puma's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Jabong.com: Balancing the Demands of Customers and Suppliers 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.

Analytics focus

– Jabong's Puma's 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 Jaydeep Mukherjee, Punit Bhardwaj 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.

High switching costs

– The high switching costs that Jabong's Puma's 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.

Superior customer experience

– The customer experience strategy of Jabong's Puma's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Low bargaining power of suppliers

– Suppliers of Jabong's Puma's in the sector have low bargaining power. Jabong.com: Balancing the Demands of Customers and Suppliers has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jabong's Puma's to manage not only supply disruptions but also source products at highly competitive prices.

Cross disciplinary teams

– Horizontal connected teams at the Jabong's Puma's 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.

Operational resilience

– The operational resilience strategy in the Jabong.com: Balancing the Demands of Customers and Suppliers 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.

Highly skilled collaborators

– Jabong's Puma's 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 Jabong.com: Balancing the Demands of Customers and Suppliers HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

High brand equity

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



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Net Promoter Score



Weaknesses Jabong.com: Balancing the Demands of Customers and Suppliers | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Jabong.com: Balancing the Demands of Customers and Suppliers are -

High operating costs

– Compare to the competitors, firm in the HBR case study Jabong.com: Balancing the Demands of Customers and Suppliers 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 Jabong's Puma's 's lucrative customers.

High cash cycle compare to competitors

Jabong's Puma's 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.

Interest costs

– Compare to the competition, Jabong's Puma's 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Jabong's Puma's 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.

Skills based hiring

– The stress on hiring functional specialists at Jabong's Puma's 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jabong's Puma's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Jabong.com: Balancing the Demands of Customers and Suppliers can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Low market penetration in new markets

– Outside its home market of Jabong's Puma's, firm in the HBR case study Jabong.com: Balancing the Demands of Customers and Suppliers needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Jabong.com: Balancing the Demands of Customers and Suppliers, is just above the industry average. Jabong's Puma's 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.

High bargaining power of channel partners

– Because of the regulatory requirements, Jaydeep Mukherjee, Punit Bhardwaj suggests that, Jabong's Puma's 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.

Slow decision making process

– As mentioned earlier in the report, Jabong's Puma's 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. Jabong's Puma's 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.

Aligning sales with marketing

– It come across in the case study Jabong.com: Balancing the Demands of Customers and Suppliers 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 Jabong.com: Balancing the Demands of Customers and Suppliers can leverage the sales team experience to cultivate customer relationships as Jabong's Puma's is planning to shift buying processes online.




Opportunities Jabong.com: Balancing the Demands of Customers and Suppliers | 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 Jabong.com: Balancing the Demands of Customers and Suppliers are -

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

Developing new processes and practices

– Jabong's Puma's 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.

Buying journey improvements

– Jabong's Puma's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Jabong.com: Balancing the Demands of Customers and Suppliers 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Jabong's Puma's 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, Jabong.com: Balancing the Demands of Customers and Suppliers, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Loyalty marketing

– Jabong's Puma's 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.

Increase in government spending

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

Leveraging digital technologies

– Jabong's Puma's 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.

Using analytics as competitive advantage

– Jabong's Puma's has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Jabong.com: Balancing the Demands of Customers and Suppliers - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jabong's Puma's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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 Jabong's Puma's 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.

Better consumer reach

– The expansion of the 5G network will help Jabong's Puma's to increase its market reach. Jabong's Puma's 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.

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. Jabong's Puma's can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Creating value in data economy

– The success of analytics program of Jabong's Puma's has opened avenues for new revenue streams for the organization in the industry. This can help Jabong's Puma's to build a more holistic ecosystem as suggested in the Jabong.com: Balancing the Demands of Customers and Suppliers case study. Jabong's Puma's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Building a culture of innovation

– managers at Jabong's Puma's 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.




Threats Jabong.com: Balancing the Demands of Customers and Suppliers External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Jabong.com: Balancing the Demands of Customers and Suppliers are -

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 Jabong's Puma's in the Sales & Marketing sector and impact the bottomline of the organization.

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. Jabong's Puma's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

High dependence on third party suppliers

– Jabong's Puma's 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.

Stagnating economy with rate increase

– Jabong's Puma's 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.

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. Jabong's Puma's 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Jabong's Puma's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Shortening product life cycle

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

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 Jabong's Puma's business can come under increasing regulations regarding data privacy, data security, etc.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Jabong's Puma's 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.

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.

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 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. Jabong's Puma's needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.

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 Jabong's Puma's.




Weighted SWOT Analysis of Jabong.com: Balancing the Demands of Customers and Suppliers 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 Jabong.com: Balancing the Demands of Customers and Suppliers 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 Jabong.com: Balancing the Demands of Customers and Suppliers 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 Jabong.com: Balancing the Demands of Customers and Suppliers 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 Jabong.com: Balancing the Demands of Customers and Suppliers 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 Jabong's Puma's needs to make to build a sustainable competitive advantage.



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