Developing a New Smartphone Application: UrbanBaby SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Developing a New Smartphone Application: UrbanBaby
UrbanBaby is a newly developed smartphone application (app) that allows users to address the difficult task of finding activities, restaurants and other forms of entertainment for newborns to young teens. A number of issues must be addressed if it is going to be profitable. First, the app's creators, Alex and Pavel, are unsure how to characterize the large potential target market, parents, or if there are other target markets that might be interested. This is critical, as the success of the app depends on the cultivation of a strong online community that will contribute content. Second, they have to find a reliable source of data to populate the app. Third, they must decide whether to focus on Apple's operating system, which is popular in North America, or put more of their energy into competing operating systems that are much more popular in the rest of the world. Finally, they have a number of strategic marketing choices to make and to prioritize, including whether to keep the UrbanBaby brand name and risk the ire of similarly named competitors, how to price the app, how to position and promote the app and how to time the rollout. How these initial choices will affect subsequent strategic and tactical decisions is also a matter of concern.
Swot Analysis of "Developing a New Smartphone Application: UrbanBaby" written by Andrew Perkins includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Urbanbaby App facing as an external strategic factors. Some of the topics covered in Developing a New Smartphone Application: UrbanBaby case study are - Strategic Management Strategies, Entrepreneurship, Mobile, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Developing a New Smartphone Application: UrbanBaby casestudy better are - – central banks are concerned over increasing inflation, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, there is backlash against globalization, increasing household debt because of falling income levels,
customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Developing a New Smartphone Application: UrbanBaby
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Developing a New Smartphone Application: UrbanBaby case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Urbanbaby App, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Urbanbaby App 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 Developing a New Smartphone Application: UrbanBaby can be done for the following purposes –
1. Strategic planning using facts provided in Developing a New Smartphone Application: UrbanBaby case study
2. Improving business portfolio management of Urbanbaby App
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 Urbanbaby App
Strengths Developing a New Smartphone Application: UrbanBaby | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Urbanbaby App in Developing a New Smartphone Application: UrbanBaby Harvard Business Review case study are -
Ability to lead change in Sales & Marketing field
– Urbanbaby App 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 Urbanbaby App in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Urbanbaby App is one of the leading recruiters in the industry. Managers in the Developing a New Smartphone Application: UrbanBaby are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Urbanbaby App 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 Developing a New Smartphone Application: UrbanBaby HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Urbanbaby App in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Urbanbaby App digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Urbanbaby App 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.
High switching costs
– The high switching costs that Urbanbaby App 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.
Strong track record of project management
– Urbanbaby App is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Urbanbaby App is present in almost all the verticals within the industry. This has provided firm in Developing a New Smartphone Application: UrbanBaby 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.
Effective Research and Development (R&D)
– Urbanbaby App 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 Developing a New Smartphone Application: UrbanBaby - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Sales & Marketing industry
– Developing a New Smartphone Application: UrbanBaby firm has clearly differentiated products in the market place. This has enabled Urbanbaby App to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Urbanbaby App to invest into research and development (R&D) and innovation.
Training and development
– Urbanbaby App has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Developing a New Smartphone Application: UrbanBaby 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.
Low bargaining power of suppliers
– Suppliers of Urbanbaby App in the sector have low bargaining power. Developing a New Smartphone Application: UrbanBaby has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Urbanbaby App to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Developing a New Smartphone Application: UrbanBaby | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Developing a New Smartphone Application: UrbanBaby are -
Products dominated business model
– Even though Urbanbaby App 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 - Developing a New Smartphone Application: UrbanBaby should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Developing a New Smartphone Application: UrbanBaby, 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.
Interest costs
– Compare to the competition, Urbanbaby App 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.
Capital Spending Reduction
– Even during the low interest decade, Urbanbaby App 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.
Aligning sales with marketing
– It come across in the case study Developing a New Smartphone Application: UrbanBaby 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 Developing a New Smartphone Application: UrbanBaby can leverage the sales team experience to cultivate customer relationships as Urbanbaby App is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Andrew Perkins suggests that, Urbanbaby App is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Urbanbaby App is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Developing a New Smartphone Application: UrbanBaby can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Developing a New Smartphone Application: UrbanBaby, is just above the industry average. Urbanbaby App needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow decision making process
– As mentioned earlier in the report, Urbanbaby App 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. Urbanbaby App 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.
Skills based hiring
– The stress on hiring functional specialists at Urbanbaby App 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.
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 Urbanbaby App supply chain. Even after few cautionary changes mentioned in the HBR case study - Developing a New Smartphone Application: UrbanBaby, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Urbanbaby App vulnerable to further global disruptions in South East Asia.
Opportunities Developing a New Smartphone Application: UrbanBaby | 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 Developing a New Smartphone Application: UrbanBaby are -
Building a culture of innovation
– managers at Urbanbaby App 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.
Using analytics as competitive advantage
– Urbanbaby App 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 Developing a New Smartphone Application: UrbanBaby - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Urbanbaby App to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Urbanbaby App can use these opportunities to build new business models that can help the communities that Urbanbaby App operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Loyalty marketing
– Urbanbaby App 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.
Creating value in data economy
– The success of analytics program of Urbanbaby App has opened avenues for new revenue streams for the organization in the industry. This can help Urbanbaby App to build a more holistic ecosystem as suggested in the Developing a New Smartphone Application: UrbanBaby case study. Urbanbaby App can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Urbanbaby App 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 Urbanbaby App 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.
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. Urbanbaby App 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, Urbanbaby App 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Urbanbaby App 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Urbanbaby App can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Urbanbaby App 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.
Better consumer reach
– The expansion of the 5G network will help Urbanbaby App to increase its market reach. Urbanbaby App 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.
Threats Developing a New Smartphone Application: UrbanBaby External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Developing a New Smartphone Application: UrbanBaby are -
High dependence on third party suppliers
– Urbanbaby App 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.
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 Urbanbaby App in the Sales & Marketing sector and impact the bottomline of the organization.
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 Urbanbaby App.
Shortening product life cycle
– it is one of the major threat that Urbanbaby App is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Urbanbaby App 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.
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. Urbanbaby App needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Urbanbaby App 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 Developing a New Smartphone Application: UrbanBaby .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Developing a New Smartphone Application: UrbanBaby, Urbanbaby App 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 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 Urbanbaby App 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.
Technology acceleration in Forth Industrial Revolution
– Urbanbaby App has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Urbanbaby App 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.
Environmental challenges
– Urbanbaby App 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. Urbanbaby App can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Urbanbaby App with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Developing a New Smartphone Application: UrbanBaby 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 Developing a New Smartphone Application: UrbanBaby 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 Developing a New Smartphone Application: UrbanBaby 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 Developing a New Smartphone Application: UrbanBaby 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 Developing a New Smartphone Application: UrbanBaby 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 Urbanbaby App needs to make to build a sustainable competitive advantage.
