Case Study Description of G.I. JOE: Marketing an Icon
To maximize their effectiveness, color cases should be printed in color.In the winter of 2003, Billy Lagor, the Hasbro toy company's brand manager for G.I. JOE, faced a set of decisions that would ultimately determine the 2004 marketing plan for the G.I. JOE brand. Under consideration were three different ways to market the military action figure: use traditional media: supplement traditional media with a short, animated DVD; or rely entirely on nontraditional marketing. In evaluating these options, Lagor grappled with a more basic question: What is the nature of the G.I. JOE and Hasbro brands? Should he market G.I. JOE as a short-term fad or as a marquee property akin to the Barbie franchise? Includes color exhibits.
Swot Analysis of "G.I. JOE: Marketing an Icon" written by Gail McGovern includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that G.i Joe facing as an external strategic factors. Some of the topics covered in G.I. JOE: Marketing an Icon case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the G.I. JOE: Marketing an Icon casestudy better are - – technology disruption, wage bills are increasing, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, central banks are concerned over increasing inflation,
increasing energy prices, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of G.I. JOE: Marketing an Icon
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in G.I. JOE: Marketing an Icon case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the G.i Joe, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which G.i Joe 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 G.I. JOE: Marketing an Icon can be done for the following purposes –
1. Strategic planning using facts provided in G.I. JOE: Marketing an Icon case study
2. Improving business portfolio management of G.i Joe
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 G.i Joe
Strengths G.I. JOE: Marketing an Icon | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of G.i Joe in G.I. JOE: Marketing an Icon Harvard Business Review case study are -
Effective Research and Development (R&D)
– G.i Joe 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 G.I. JOE: Marketing an Icon - 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
– G.I. JOE: Marketing an Icon firm has clearly differentiated products in the market place. This has enabled G.i Joe to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped G.i Joe to invest into research and development (R&D) and innovation.
Organizational Resilience of G.i Joe
– The covid-19 pandemic has put organizational resilience at the centre of everthing that G.i Joe does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– G.i Joe is present in almost all the verticals within the industry. This has provided firm in G.I. JOE: Marketing an Icon 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.
Superior customer experience
– The customer experience strategy of G.i Joe 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 G.i Joe digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. G.i Joe 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.
Ability to lead change in Sales & Marketing field
– G.i Joe 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 G.i Joe in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- G.i Joe is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at G.i Joe is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in G.I. JOE: Marketing an Icon Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of G.i Joe in the sector have low bargaining power. G.I. JOE: Marketing an Icon has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps G.i Joe to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– G.i Joe has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in G.I. JOE: Marketing an Icon 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.
Highly skilled collaborators
– G.i Joe 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 G.I. JOE: Marketing an Icon HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the G.I. JOE: Marketing an Icon 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.
Weaknesses G.I. JOE: Marketing an Icon | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of G.I. JOE: Marketing an Icon are -
High operating costs
– Compare to the competitors, firm in the HBR case study G.I. JOE: Marketing an Icon 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 G.i Joe 's lucrative customers.
Aligning sales with marketing
– It come across in the case study G.I. JOE: Marketing an Icon 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 G.I. JOE: Marketing an Icon can leverage the sales team experience to cultivate customer relationships as G.i Joe is planning to shift buying processes online.
Interest costs
– Compare to the competition, G.i Joe 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.
Slow decision making process
– As mentioned earlier in the report, G.i Joe 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. G.i Joe 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study G.I. JOE: Marketing an Icon, it seems that the employees of G.i Joe 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.
Skills based hiring
– The stress on hiring functional specialists at G.i Joe 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 G.i Joe supply chain. Even after few cautionary changes mentioned in the HBR case study - G.I. JOE: Marketing an Icon, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left G.i Joe vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of G.i Joe, firm in the HBR case study G.I. JOE: Marketing an Icon needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, G.i Joe 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 G.I. JOE: Marketing an Icon HBR case study mentions - G.i Joe 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 G.I. JOE: Marketing an Icon 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 G.i Joe has relatively successful track record of launching new products.
Opportunities G.I. JOE: Marketing an Icon | 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 G.I. JOE: Marketing an Icon are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for G.i Joe 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, G.i Joe 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, G.I. JOE: Marketing an Icon, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help G.i Joe to increase its market reach. G.i Joe 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, G.i Joe is facing challenges because of the dominance of functional experts in the organization. G.I. JOE: Marketing an Icon 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects G.i Joe can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, G.i Joe can use these opportunities to build new business models that can help the communities that G.i Joe operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, G.i Joe 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for G.i Joe 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 G.i Joe to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at G.i Joe 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. G.i Joe can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 G.i Joe 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.
Buying journey improvements
– G.i Joe can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. G.I. JOE: Marketing an Icon 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.
Manufacturing automation
– G.i Joe 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.
Threats G.I. JOE: Marketing an Icon External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study G.I. JOE: Marketing an Icon are -
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study G.I. JOE: Marketing an Icon, G.i Joe 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for G.i Joe 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.
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. G.i Joe needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Environmental challenges
– G.i Joe 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. G.i Joe can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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 G.i Joe in the Sales & Marketing sector and impact the bottomline of the organization.
Regulatory challenges
– G.i Joe 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.
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. G.i Joe 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.
Stagnating economy with rate increase
– G.i Joe 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 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.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of G.i Joe business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents G.i Joe with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, G.i Joe 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 G.I. JOE: Marketing an Icon .
Weighted SWOT Analysis of G.I. JOE: Marketing an Icon 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 G.I. JOE: Marketing an Icon 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 G.I. JOE: Marketing an Icon 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 G.I. JOE: Marketing an Icon 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 G.I. JOE: Marketing an Icon 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 G.i Joe needs to make to build a sustainable competitive advantage.