Case Study Description of Goodyear: The Aquatred Launch (Condensed)
Goodyear is planning to launch an innovative new tire in a price sensitive and highly competitive category. The case deals with channel conflicts and management issues arising in mature product categories.
Swot Analysis of "Goodyear: The Aquatred Launch (Condensed)" written by Samuel Chun includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Goodyear Aquatred facing as an external strategic factors. Some of the topics covered in Goodyear: The Aquatred Launch (Condensed) case study are - Strategic Management Strategies, Supply chain and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Goodyear: The Aquatred Launch (Condensed) casestudy better are - – geopolitical disruptions, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, talent flight as more people leaving formal jobs, increasing transportation and logistics costs,
increasing energy prices, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Goodyear: The Aquatred Launch (Condensed)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Goodyear: The Aquatred Launch (Condensed) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Goodyear Aquatred, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Goodyear Aquatred 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 Goodyear: The Aquatred Launch (Condensed) can be done for the following purposes –
1. Strategic planning using facts provided in Goodyear: The Aquatred Launch (Condensed) case study
2. Improving business portfolio management of Goodyear Aquatred
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 Goodyear Aquatred
Strengths Goodyear: The Aquatred Launch (Condensed) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Goodyear Aquatred in Goodyear: The Aquatred Launch (Condensed) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Goodyear Aquatred in the sector have low bargaining power. Goodyear: The Aquatred Launch (Condensed) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Goodyear Aquatred to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Sales & Marketing industry
– Goodyear: The Aquatred Launch (Condensed) firm has clearly differentiated products in the market place. This has enabled Goodyear Aquatred to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Goodyear Aquatred to invest into research and development (R&D) and innovation.
Analytics focus
– Goodyear Aquatred 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 Samuel Chun 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.
Innovation driven organization
– Goodyear Aquatred is one of the most innovative firm in sector. Manager in Goodyear: The Aquatred Launch (Condensed) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Goodyear Aquatred has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Goodyear: The Aquatred Launch (Condensed) 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.
High brand equity
– Goodyear Aquatred has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Goodyear Aquatred to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Goodyear Aquatred is one of the leading recruiters in the industry. Managers in the Goodyear: The Aquatred Launch (Condensed) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Sales & Marketing field
– Goodyear Aquatred 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 Goodyear Aquatred in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Goodyear Aquatred in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Goodyear Aquatred is present in almost all the verticals within the industry. This has provided firm in Goodyear: The Aquatred Launch (Condensed) 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.
Highly skilled collaborators
– Goodyear Aquatred 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 Goodyear: The Aquatred Launch (Condensed) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Goodyear Aquatred has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Goodyear Aquatred has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Weaknesses Goodyear: The Aquatred Launch (Condensed) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Goodyear: The Aquatred Launch (Condensed) are -
Products dominated business model
– Even though Goodyear Aquatred has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Goodyear: The Aquatred Launch (Condensed) should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Goodyear Aquatred 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 Goodyear Aquatred products
– To increase the profitability and margins on the products, Goodyear Aquatred needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Goodyear Aquatred 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.
Increasing silos among functional specialists
– The organizational structure of Goodyear Aquatred is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Goodyear Aquatred needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Goodyear Aquatred to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Goodyear Aquatred is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Goodyear: The Aquatred Launch (Condensed) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Goodyear Aquatred 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. Goodyear Aquatred 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Goodyear: The Aquatred Launch (Condensed) 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 Goodyear Aquatred 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Goodyear: The Aquatred Launch (Condensed), it seems that the employees of Goodyear Aquatred 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Goodyear: The Aquatred Launch (Condensed), in the dynamic environment Goodyear Aquatred has struggled to respond to the nimble upstart competition. Goodyear Aquatred has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Goodyear Aquatred, firm in the HBR case study Goodyear: The Aquatred Launch (Condensed) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Goodyear: The Aquatred Launch (Condensed) | 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 Goodyear: The Aquatred Launch (Condensed) are -
Creating value in data economy
– The success of analytics program of Goodyear Aquatred has opened avenues for new revenue streams for the organization in the industry. This can help Goodyear Aquatred to build a more holistic ecosystem as suggested in the Goodyear: The Aquatred Launch (Condensed) case study. Goodyear Aquatred can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Goodyear Aquatred 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 Goodyear: The Aquatred Launch (Condensed) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Goodyear Aquatred to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Goodyear Aquatred to increase its market reach. Goodyear Aquatred 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. Goodyear Aquatred can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Goodyear Aquatred 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
– Goodyear Aquatred 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Goodyear Aquatred 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Goodyear Aquatred 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, Goodyear: The Aquatred Launch (Condensed), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Goodyear Aquatred is facing challenges because of the dominance of functional experts in the organization. Goodyear: The Aquatred Launch (Condensed) 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
– Goodyear Aquatred 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
– Goodyear Aquatred can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Goodyear: The Aquatred Launch (Condensed) 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.
Learning at scale
– Online learning technologies has now opened space for Goodyear Aquatred 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Goodyear Aquatred 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 Goodyear Aquatred to hire the very best people irrespective of their geographical location.
Threats Goodyear: The Aquatred Launch (Condensed) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Goodyear: The Aquatred Launch (Condensed) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Goodyear Aquatred with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Regulatory challenges
– Goodyear Aquatred 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. Goodyear Aquatred needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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. Goodyear Aquatred will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Goodyear Aquatred 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. Goodyear Aquatred can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Goodyear Aquatred.
Technology acceleration in Forth Industrial Revolution
– Goodyear Aquatred has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Goodyear Aquatred 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.
High dependence on third party suppliers
– Goodyear Aquatred 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Goodyear: The Aquatred Launch (Condensed), Goodyear Aquatred 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 .
Shortening product life cycle
– it is one of the major threat that Goodyear Aquatred is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Goodyear Aquatred
– 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 Goodyear Aquatred.
Weighted SWOT Analysis of Goodyear: The Aquatred Launch (Condensed) 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 Goodyear: The Aquatred Launch (Condensed) 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 Goodyear: The Aquatred Launch (Condensed) 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 Goodyear: The Aquatred Launch (Condensed) 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 Goodyear: The Aquatred Launch (Condensed) 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 Goodyear Aquatred needs to make to build a sustainable competitive advantage.
