Media Modeling and Budgeting at DMI SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Media Modeling and Budgeting at DMI
A marketing director applies a scientific/quantitative approach to understanding and optimizing his company's marketing spending decisions. His hypotheses include the concepts of diminishing returns on spending, a results ceiling, carryover, and differential effectiveness. His team develops a mathematical formula that provides parameter estimates resulting from fitting the model to the three years of regional and national data. He must then decide how to apply the data to maximize media spending. A student Excel spreadsheet is available.
Swot Analysis of "Media Modeling and Budgeting at DMI" written by Paul W. Farris, Phillip E. Pfeifer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Spending Carryover facing as an external strategic factors. Some of the topics covered in Media Modeling and Budgeting at DMI case study are - Strategic Management Strategies, Decision making, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Media Modeling and Budgeting at DMI casestudy better are - – increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies,
geopolitical disruptions, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Media Modeling and Budgeting at DMI
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Media Modeling and Budgeting at DMI case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Spending Carryover, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Spending Carryover 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 Media Modeling and Budgeting at DMI can be done for the following purposes –
1. Strategic planning using facts provided in Media Modeling and Budgeting at DMI case study
2. Improving business portfolio management of Spending Carryover
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 Spending Carryover
Strengths Media Modeling and Budgeting at DMI | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Spending Carryover in Media Modeling and Budgeting at DMI Harvard Business Review case study are -
Innovation driven organization
– Spending Carryover is one of the most innovative firm in sector. Manager in Media Modeling and Budgeting at DMI Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Spending Carryover 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 Paul W. Farris, Phillip E. Pfeifer 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.
Organizational Resilience of Spending Carryover
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Spending Carryover does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Sales & Marketing industry
– Media Modeling and Budgeting at DMI firm has clearly differentiated products in the market place. This has enabled Spending Carryover to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Spending Carryover to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Spending Carryover 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 Media Modeling and Budgeting at DMI HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Spending Carryover has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Spending Carryover to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Spending Carryover 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 Media Modeling and Budgeting at DMI - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Spending Carryover digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Spending Carryover 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.
Training and development
– Spending Carryover has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Media Modeling and Budgeting at DMI 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.
Cross disciplinary teams
– Horizontal connected teams at the Spending Carryover 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.
Diverse revenue streams
– Spending Carryover is present in almost all the verticals within the industry. This has provided firm in Media Modeling and Budgeting at DMI 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.
Low bargaining power of suppliers
– Suppliers of Spending Carryover in the sector have low bargaining power. Media Modeling and Budgeting at DMI has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Spending Carryover to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Media Modeling and Budgeting at DMI | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Media Modeling and Budgeting at DMI are -
High operating costs
– Compare to the competitors, firm in the HBR case study Media Modeling and Budgeting at DMI 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 Spending Carryover 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Media Modeling and Budgeting at DMI, it seems that the employees of Spending Carryover 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 Spending Carryover is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Spending Carryover needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Spending Carryover to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Spending Carryover, firm in the HBR case study Media Modeling and Budgeting at DMI needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Media Modeling and Budgeting at DMI 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 Media Modeling and Budgeting at DMI can leverage the sales team experience to cultivate customer relationships as Spending Carryover is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Paul W. Farris, Phillip E. Pfeifer suggests that, Spending Carryover is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Capital Spending Reduction
– Even during the low interest decade, Spending Carryover has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Spending Carryover supply chain. Even after few cautionary changes mentioned in the HBR case study - Media Modeling and Budgeting at DMI, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Spending Carryover vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Spending Carryover 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.
Lack of clear differentiation of Spending Carryover products
– To increase the profitability and margins on the products, Spending Carryover needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Spending Carryover 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.
Opportunities Media Modeling and Budgeting at DMI | 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 Media Modeling and Budgeting at DMI are -
Loyalty marketing
– Spending Carryover 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Spending Carryover 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, Media Modeling and Budgeting at DMI, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Spending Carryover 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. Spending Carryover 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.
Buying journey improvements
– Spending Carryover can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Media Modeling and Budgeting at DMI 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Spending Carryover can use these opportunities to build new business models that can help the communities that Spending Carryover operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Spending Carryover is facing challenges because of the dominance of functional experts in the organization. Media Modeling and Budgeting at DMI 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. Spending Carryover can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Spending Carryover 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.
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 Spending Carryover 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.
Creating value in data economy
– The success of analytics program of Spending Carryover has opened avenues for new revenue streams for the organization in the industry. This can help Spending Carryover to build a more holistic ecosystem as suggested in the Media Modeling and Budgeting at DMI case study. Spending Carryover can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Spending Carryover in the consumer business. Now Spending Carryover can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Spending Carryover 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 Spending Carryover to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Spending Carryover 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 Media Modeling and Budgeting at DMI - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Spending Carryover to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Media Modeling and Budgeting at DMI External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Media Modeling and Budgeting at DMI are -
Shortening product life cycle
– it is one of the major threat that Spending Carryover is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Spending Carryover has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Spending Carryover 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.
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.
High dependence on third party suppliers
– Spending Carryover 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.
Environmental challenges
– Spending Carryover 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. Spending Carryover can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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. Spending Carryover 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Spending Carryover 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Media Modeling and Budgeting at DMI, Spending Carryover 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 .
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 Spending Carryover.
Consumer confidence and its impact on Spending Carryover 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.
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 Spending Carryover business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Spending Carryover 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 Media Modeling and Budgeting at DMI .
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. Spending Carryover can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Media Modeling and Budgeting at DMI 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 Media Modeling and Budgeting at DMI 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 Media Modeling and Budgeting at DMI 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 Media Modeling and Budgeting at DMI 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 Media Modeling and Budgeting at DMI 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 Spending Carryover needs to make to build a sustainable competitive advantage.