Case Study Description of Improving Repurchase Rates at zulily
In February 2015, zulily co-founder CEO, Darrell Cavens faced a major challenge in his business, a Seattle-based daily deals site that catered to moms. The more he spent to acquire new customers, the less he retained them in the form of repeat purchases. This was an entirely new conundrum in the company. Up to that point, customer repeat purchase rates had been incredibly consistent. Cavens and his executive team had just discovered this adverse dynamic and needed to resolve it as soon as possible. What was causing the decline in repeat purchase rates? How should Cavens resume new customer acquisition in order to return to the company's previously higher level of growth?
Swot Analysis of "Improving Repurchase Rates at zulily" written by Thales S. Teixeira, Sarah McAra includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cavens Repeat facing as an external strategic factors. Some of the topics covered in Improving Repurchase Rates at zulily case study are - Strategic Management Strategies, Strategy, Technology and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Improving Repurchase Rates at zulily casestudy better are - – wage bills are increasing, geopolitical disruptions, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models,
challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Improving Repurchase Rates at zulily
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Improving Repurchase Rates at zulily case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cavens Repeat, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cavens Repeat 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 Improving Repurchase Rates at zulily can be done for the following purposes –
1. Strategic planning using facts provided in Improving Repurchase Rates at zulily case study
2. Improving business portfolio management of Cavens Repeat
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 Cavens Repeat
Strengths Improving Repurchase Rates at zulily | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cavens Repeat in Improving Repurchase Rates at zulily Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Cavens Repeat in the sector have low bargaining power. Improving Repurchase Rates at zulily has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cavens Repeat to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Improving Repurchase Rates at zulily 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.
Training and development
– Cavens Repeat has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Improving Repurchase Rates at zulily 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.
Diverse revenue streams
– Cavens Repeat is present in almost all the verticals within the industry. This has provided firm in Improving Repurchase Rates at zulily 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.
High brand equity
– Cavens Repeat has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cavens Repeat to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Cavens Repeat is one of the leading recruiters in the industry. Managers in the Improving Repurchase Rates at zulily are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Cavens Repeat 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 Thales S. Teixeira, Sarah McAra 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.
Strong track record of project management
– Cavens Repeat is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Sales & Marketing field
– Cavens Repeat 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 Cavens Repeat in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Cavens Repeat
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cavens Repeat does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Cavens Repeat in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Cavens Repeat is one of the most innovative firm in sector. Manager in Improving Repurchase Rates at zulily Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Improving Repurchase Rates at zulily | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Improving Repurchase Rates at zulily are -
Workers concerns about automation
– As automation is fast increasing in the segment, Cavens Repeat 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.
Capital Spending Reduction
– Even during the low interest decade, Cavens Repeat 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.
No frontier risks strategy
– After analyzing the HBR case study Improving Repurchase Rates at zulily, 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 bargaining power of channel partners
– Because of the regulatory requirements, Thales S. Teixeira, Sarah McAra suggests that, Cavens Repeat 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 cash cycle compare to competitors
Cavens Repeat 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.
Aligning sales with marketing
– It come across in the case study Improving Repurchase Rates at zulily 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 Improving Repurchase Rates at zulily can leverage the sales team experience to cultivate customer relationships as Cavens Repeat is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Cavens Repeat is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Cavens Repeat needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cavens Repeat to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Cavens Repeat products
– To increase the profitability and margins on the products, Cavens Repeat needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Improving Repurchase Rates at zulily 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 Cavens Repeat 's lucrative customers.
Need for greater diversity
– Cavens Repeat 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 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 Cavens Repeat supply chain. Even after few cautionary changes mentioned in the HBR case study - Improving Repurchase Rates at zulily, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cavens Repeat vulnerable to further global disruptions in South East Asia.
Opportunities Improving Repurchase Rates at zulily | 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 Improving Repurchase Rates at zulily are -
Creating value in data economy
– The success of analytics program of Cavens Repeat has opened avenues for new revenue streams for the organization in the industry. This can help Cavens Repeat to build a more holistic ecosystem as suggested in the Improving Repurchase Rates at zulily case study. Cavens Repeat can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Cavens Repeat 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.
Leveraging digital technologies
– Cavens Repeat 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cavens Repeat can use these opportunities to build new business models that can help the communities that Cavens Repeat operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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. Cavens Repeat can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Cavens Repeat 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.
Developing new processes and practices
– Cavens Repeat 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cavens Repeat 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.
Manufacturing automation
– Cavens Repeat 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cavens Repeat is facing challenges because of the dominance of functional experts in the organization. Improving Repurchase Rates at zulily 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.
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. Cavens Repeat can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cavens Repeat 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, Improving Repurchase Rates at zulily, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cavens Repeat 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.
Threats Improving Repurchase Rates at zulily External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Improving Repurchase Rates at zulily are -
Environmental challenges
– Cavens Repeat 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. Cavens Repeat can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cavens Repeat 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.
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.
Consumer confidence and its impact on Cavens Repeat 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Improving Repurchase Rates at zulily, Cavens Repeat 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 .
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.
Increasing wage structure of Cavens Repeat
– 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 Cavens Repeat.
Technology acceleration in Forth Industrial Revolution
– Cavens Repeat has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Cavens Repeat 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.
Stagnating economy with rate increase
– Cavens Repeat 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.
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 Cavens Repeat in the Sales & Marketing sector and impact the bottomline of the organization.
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. Cavens Repeat 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.
Regulatory challenges
– Cavens Repeat 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.
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 Cavens Repeat business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Improving Repurchase Rates at zulily 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 Improving Repurchase Rates at zulily 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 Improving Repurchase Rates at zulily 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 Improving Repurchase Rates at zulily 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 Improving Repurchase Rates at zulily 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 Cavens Repeat needs to make to build a sustainable competitive advantage.
