Manchester Products: A Brand Transition Challenge, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Manchester Products: A Brand Transition Challenge, Spanish Version
When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version.In January of 2005, Manchester Products Inc., a longtime leader in office furniture that only recently entered into the home furniture market, acquired Paul Logan's Furniture Division (PLFD). The acquisition of PLFD made Manchester an instant market leader in household furniture. A key factor in the value of PLFD has been the name of the company founder -- arguably the premiere name in high-end fashion and accessories, and a true lifestyle brand. However, Manchester has acquired rights to use the Paul Logan brand name for only three years. Jason Adams, VP of Marketing for Manchester, is responsible for designing a plan to transition the brand from the Paul Logan name to Manchester. He must develop the optimal timing and sequencing of the brand transition, assess the implications, and establish the appropriate mix of advertising and promotion programs to support the transition.
Swot Analysis of "Manchester Products: A Brand Transition Challenge, Spanish Version" written by John A. Quelch, Heather Beckham includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Manchester Plfd facing as an external strategic factors. Some of the topics covered in Manchester Products: A Brand Transition Challenge, Spanish Version case study are - Strategic Management Strategies, Mergers & acquisitions and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Manchester Products: A Brand Transition Challenge, Spanish Version casestudy better are - – technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, increasing commodity prices, increasing transportation and logistics costs,
competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Manchester Products: A Brand Transition Challenge, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Manchester Products: A Brand Transition Challenge, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Manchester Plfd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Manchester Plfd 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 Manchester Products: A Brand Transition Challenge, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Manchester Products: A Brand Transition Challenge, Spanish Version case study
2. Improving business portfolio management of Manchester Plfd
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 Manchester Plfd
Strengths Manchester Products: A Brand Transition Challenge, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Manchester Plfd in Manchester Products: A Brand Transition Challenge, Spanish Version Harvard Business Review case study are -
Successful track record of launching new products
– Manchester Plfd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Manchester Plfd 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Manchester Products: A Brand Transition Challenge, Spanish Version firm has clearly differentiated products in the market place. This has enabled Manchester Plfd to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Manchester Plfd to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Manchester Plfd 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 Manchester Plfd in the sector have low bargaining power. Manchester Products: A Brand Transition Challenge, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Manchester Plfd to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Manchester Plfd is present in almost all the verticals within the industry. This has provided firm in Manchester Products: A Brand Transition Challenge, Spanish Version 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
– Manchester Plfd has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Manchester Plfd to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Manchester Plfd 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 recruit top talent
– Manchester Plfd is one of the leading recruiters in the industry. Managers in the Manchester Products: A Brand Transition Challenge, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Manchester Products: A Brand Transition Challenge, Spanish Version 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.
Ability to lead change in Sales & Marketing field
– Manchester Plfd 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 Manchester Plfd in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Manchester Plfd 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.
Highly skilled collaborators
– Manchester Plfd 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 Manchester Products: A Brand Transition Challenge, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Manchester Products: A Brand Transition Challenge, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Manchester Products: A Brand Transition Challenge, Spanish Version are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Manchester Plfd is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Manchester Products: A Brand Transition Challenge, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Manchester Plfd 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.
Slow to strategic competitive environment developments
– As Manchester Products: A Brand Transition Challenge, Spanish Version HBR case study mentions - Manchester Plfd takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Manchester Products: A Brand Transition Challenge, Spanish Version HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Manchester Plfd has relatively successful track record of launching new products.
Products dominated business model
– Even though Manchester Plfd 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 - Manchester Products: A Brand Transition Challenge, Spanish Version should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Manchester Plfd 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.
Increasing silos among functional specialists
– The organizational structure of Manchester Plfd is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Manchester Plfd needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Manchester Plfd to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Manchester Products: A Brand Transition Challenge, Spanish Version 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 Manchester Products: A Brand Transition Challenge, Spanish Version can leverage the sales team experience to cultivate customer relationships as Manchester Plfd is planning to shift buying processes online.
Interest costs
– Compare to the competition, Manchester Plfd 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.
High bargaining power of channel partners
– Because of the regulatory requirements, John A. Quelch, Heather Beckham suggests that, Manchester Plfd 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.
Need for greater diversity
– Manchester Plfd 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 Manchester Products: A Brand Transition Challenge, Spanish Version | 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 Manchester Products: A Brand Transition Challenge, Spanish Version are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Manchester Plfd 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 Manchester Plfd to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Manchester Plfd 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Manchester Plfd can use these opportunities to build new business models that can help the communities that Manchester Plfd operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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 Manchester Plfd in the consumer business. Now Manchester Plfd can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Manchester Plfd 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.
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. Manchester Plfd can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Manchester Plfd to increase its market reach. Manchester Plfd 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Manchester Plfd can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Manchester Plfd is facing challenges because of the dominance of functional experts in the organization. Manchester Products: A Brand Transition Challenge, Spanish Version 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.
Creating value in data economy
– The success of analytics program of Manchester Plfd has opened avenues for new revenue streams for the organization in the industry. This can help Manchester Plfd to build a more holistic ecosystem as suggested in the Manchester Products: A Brand Transition Challenge, Spanish Version case study. Manchester Plfd can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Manchester Plfd 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, Manchester Products: A Brand Transition Challenge, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Manchester Plfd 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.
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. Manchester Plfd 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. Manchester Plfd 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.
Threats Manchester Products: A Brand Transition Challenge, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Manchester Products: A Brand Transition Challenge, Spanish Version are -
High dependence on third party suppliers
– Manchester Plfd 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.
Regulatory challenges
– Manchester Plfd 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Manchester Plfd with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Manchester Plfd will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Manchester Plfd.
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 Manchester Plfd
– 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 Manchester Plfd.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Manchester Products: A Brand Transition Challenge, Spanish Version, Manchester Plfd may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Technology acceleration in Forth Industrial Revolution
– Manchester Plfd has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Manchester Plfd needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Manchester Plfd can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Manchester Plfd in the Sales & Marketing sector and impact the bottomline of the organization.
Environmental challenges
– Manchester Plfd 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. Manchester Plfd can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Consumer confidence and its impact on Manchester Plfd 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.
Weighted SWOT Analysis of Manchester Products: A Brand Transition Challenge, Spanish Version 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 Manchester Products: A Brand Transition Challenge, Spanish Version 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 Manchester Products: A Brand Transition Challenge, Spanish Version 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 Manchester Products: A Brand Transition Challenge, Spanish Version 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 Manchester Products: A Brand Transition Challenge, Spanish Version 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 Manchester Plfd needs to make to build a sustainable competitive advantage.