Case Study Description of Eventbrite: Market Sizing, Competitive Analysis, and Fundraising
"Raise money when times are good." Kevin Hartz mulled over this expression as he examined the term sheet before him. The CEO had become somewhat of a masterful fundraiser. Since founding the online event and ticketing service Eventbrite in 2006, Kevin, his wife Julia, and co-founder Renaud Visage had raised $80 million over six rounds of financing. Now, the Hartzes and Visage had before them an offer from Tiger Global Management and T. Rowe Price to invest $60 million in Eventbrite at a $650 million valuation. Before accepting this financing, however, the founders needed to assess whether such a large raise was necessary and, if it was, how it would affect Eventbrite's development and influence the firm's future exit strategy. Unfortunately, the team knew that Eventbrite's market dynamics would make this analysis difficult.
Authors :: Jonathan Levav, Joshua Rauh, Jason Luther
Swot Analysis of "Eventbrite: Market Sizing, Competitive Analysis, and Fundraising" written by Jonathan Levav, Joshua Rauh, Jason Luther includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Eventbrite Eventbrite's facing as an external strategic factors. Some of the topics covered in Eventbrite: Market Sizing, Competitive Analysis, and Fundraising case study are - Strategic Management Strategies, Social platforms and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Eventbrite: Market Sizing, Competitive Analysis, and Fundraising casestudy better are - – there is backlash against globalization, wage bills are increasing, increasing household debt because of falling income levels, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, geopolitical disruptions,
technology disruption, increasing energy prices, etc
Introduction to SWOT Analysis of Eventbrite: Market Sizing, Competitive Analysis, and Fundraising
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Eventbrite: Market Sizing, Competitive Analysis, and Fundraising case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Eventbrite Eventbrite's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Eventbrite Eventbrite's 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 Eventbrite: Market Sizing, Competitive Analysis, and Fundraising can be done for the following purposes –
1. Strategic planning using facts provided in Eventbrite: Market Sizing, Competitive Analysis, and Fundraising case study
2. Improving business portfolio management of Eventbrite Eventbrite's
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 Eventbrite Eventbrite's
Strengths Eventbrite: Market Sizing, Competitive Analysis, and Fundraising | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Eventbrite Eventbrite's in Eventbrite: Market Sizing, Competitive Analysis, and Fundraising Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Eventbrite: Market Sizing, Competitive Analysis, and Fundraising 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.
Low bargaining power of suppliers
– Suppliers of Eventbrite Eventbrite's in the sector have low bargaining power. Eventbrite: Market Sizing, Competitive Analysis, and Fundraising has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Eventbrite Eventbrite's to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Eventbrite Eventbrite's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Eventbrite Eventbrite's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Eventbrite Eventbrite's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Eventbrite Eventbrite's 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
– Eventbrite: Market Sizing, Competitive Analysis, and Fundraising firm has clearly differentiated products in the market place. This has enabled Eventbrite Eventbrite's to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Eventbrite Eventbrite's to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Eventbrite Eventbrite's 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Eventbrite Eventbrite's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Eventbrite Eventbrite's 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 brand equity
– Eventbrite Eventbrite's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Eventbrite Eventbrite's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Eventbrite Eventbrite's 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 Eventbrite: Market Sizing, Competitive Analysis, and Fundraising HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Eventbrite Eventbrite's is one of the leading recruiters in the industry. Managers in the Eventbrite: Market Sizing, Competitive Analysis, and Fundraising are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Eventbrite Eventbrite's 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 Eventbrite: Market Sizing, Competitive Analysis, and Fundraising - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Eventbrite: Market Sizing, Competitive Analysis, and Fundraising | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Eventbrite: Market Sizing, Competitive Analysis, and Fundraising are -
High operating costs
– Compare to the competitors, firm in the HBR case study Eventbrite: Market Sizing, Competitive Analysis, and Fundraising 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 Eventbrite Eventbrite's 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Eventbrite Eventbrite's 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 cash cycle compare to competitors
Eventbrite Eventbrite's 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Jonathan Levav, Joshua Rauh, Jason Luther suggests that, Eventbrite Eventbrite's 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.
Lack of clear differentiation of Eventbrite Eventbrite's products
– To increase the profitability and margins on the products, Eventbrite Eventbrite's needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Eventbrite: Market Sizing, Competitive Analysis, and Fundraising 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 Eventbrite: Market Sizing, Competitive Analysis, and Fundraising can leverage the sales team experience to cultivate customer relationships as Eventbrite Eventbrite's is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Eventbrite Eventbrite's 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. Eventbrite Eventbrite's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Eventbrite Eventbrite's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Eventbrite: Market Sizing, Competitive Analysis, and Fundraising, in the dynamic environment Eventbrite Eventbrite's has struggled to respond to the nimble upstart competition. Eventbrite Eventbrite's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Eventbrite Eventbrite's 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 star products
– The top 2 products and services of the firm as mentioned in the Eventbrite: Market Sizing, Competitive Analysis, and Fundraising 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 Eventbrite Eventbrite's has relatively successful track record of launching new products.
Opportunities Eventbrite: Market Sizing, Competitive Analysis, and Fundraising | 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 Eventbrite: Market Sizing, Competitive Analysis, and Fundraising are -
Buying journey improvements
– Eventbrite Eventbrite's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Eventbrite: Market Sizing, Competitive Analysis, and Fundraising 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.
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 Eventbrite Eventbrite's in the consumer business. Now Eventbrite Eventbrite's can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Eventbrite Eventbrite's 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Eventbrite Eventbrite's can use these opportunities to build new business models that can help the communities that Eventbrite Eventbrite's operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Eventbrite Eventbrite's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Eventbrite Eventbrite's 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, Eventbrite: Market Sizing, Competitive Analysis, and Fundraising, 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 Eventbrite Eventbrite's 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. Eventbrite Eventbrite's 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. Eventbrite Eventbrite's 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.
Loyalty marketing
– Eventbrite Eventbrite's 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Eventbrite Eventbrite's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Eventbrite Eventbrite's 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.
Building a culture of innovation
– managers at Eventbrite Eventbrite's 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.
Leveraging digital technologies
– Eventbrite Eventbrite's 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.
Threats Eventbrite: Market Sizing, Competitive Analysis, and Fundraising External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Eventbrite: Market Sizing, Competitive Analysis, and Fundraising are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Eventbrite Eventbrite's 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 Eventbrite: Market Sizing, Competitive Analysis, and Fundraising .
Shortening product life cycle
– it is one of the major threat that Eventbrite Eventbrite's is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Eventbrite Eventbrite's in the Sales & Marketing sector and impact the bottomline of the organization.
Regulatory challenges
– Eventbrite Eventbrite's 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.
Stagnating economy with rate increase
– Eventbrite Eventbrite's 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.
Technology acceleration in Forth Industrial Revolution
– Eventbrite Eventbrite's has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Eventbrite Eventbrite's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Eventbrite Eventbrite's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Eventbrite Eventbrite's.
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. Eventbrite Eventbrite's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Eventbrite Eventbrite's 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.
Increasing wage structure of Eventbrite Eventbrite's
– 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 Eventbrite Eventbrite's.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Eventbrite Eventbrite's 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.
Weighted SWOT Analysis of Eventbrite: Market Sizing, Competitive Analysis, and Fundraising 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 Eventbrite: Market Sizing, Competitive Analysis, and Fundraising 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 Eventbrite: Market Sizing, Competitive Analysis, and Fundraising 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 Eventbrite: Market Sizing, Competitive Analysis, and Fundraising 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 Eventbrite: Market Sizing, Competitive Analysis, and Fundraising 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 Eventbrite Eventbrite's needs to make to build a sustainable competitive advantage.