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Southern Chair Company: No Time for Sitting Around! SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Southern Chair Company: No Time for Sitting Around!


Prior to the turn of the century, North Carolina was the hub of prosperous furniture manufacturing. However, competition from global manufacturers, the rise of Internet retailers, and the turbulent U.S. economy created significant challenges and changes for the industry. Many U.S.-based firms exited the industry due to global competition and poor financial performance. Robert Drake, owner of North Carolina-based Southern Chair Company, recognized the need for a new Strategic Plan; a plan to guide his company both through and beyond the challenging times. He remained committed to the long-term health of his manufacturing firm and hoped that his company would not join the ranks of his former, now defunct, competitors. In this case, the reader steps into the shoes of Robert Drake to create a strategic plan for Southern Chair Company while considering trends in external environments, key components of the business, and Robert's personal goals for the company.

Authors :: Gregory Berka, Erika Lopina, Logan Justice, Tammy Beck

Topics :: Sales & Marketing

Tags :: Decision making, Manufacturing, Strategic planning, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Southern Chair Company: No Time for Sitting Around!" written by Gregory Berka, Erika Lopina, Logan Justice, Tammy Beck includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Drake Chair facing as an external strategic factors. Some of the topics covered in Southern Chair Company: No Time for Sitting Around! case study are - Strategic Management Strategies, Decision making, Manufacturing, Strategic planning and Sales & Marketing.


Some of the macro environment factors that can be used to understand the Southern Chair Company: No Time for Sitting Around! casestudy better are - – talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, technology disruption, etc



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Introduction to SWOT Analysis of Southern Chair Company: No Time for Sitting Around!


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Southern Chair Company: No Time for Sitting Around! case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Drake Chair, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Drake Chair 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 Southern Chair Company: No Time for Sitting Around! can be done for the following purposes –
1. Strategic planning using facts provided in Southern Chair Company: No Time for Sitting Around! case study
2. Improving business portfolio management of Drake Chair
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 Drake Chair




Strengths Southern Chair Company: No Time for Sitting Around! | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Drake Chair in Southern Chair Company: No Time for Sitting Around! Harvard Business Review case study are -

Operational resilience

– The operational resilience strategy in the Southern Chair Company: No Time for Sitting Around! 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.

Highly skilled collaborators

– Drake Chair 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 Southern Chair Company: No Time for Sitting Around! HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Successful track record of launching new products

– Drake Chair has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Drake Chair 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.

Superior customer experience

– The customer experience strategy of Drake Chair in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

High switching costs

– The high switching costs that Drake Chair 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.

Effective Research and Development (R&D)

– Drake Chair 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 Southern Chair Company: No Time for Sitting Around! - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Training and development

– Drake Chair has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Southern Chair Company: No Time for Sitting Around! 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.

Learning organization

- Drake Chair 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 Drake Chair is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Southern Chair Company: No Time for Sitting Around! Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Strong track record of project management

– Drake Chair is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Analytics focus

– Drake Chair is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Gregory Berka, Erika Lopina, Logan Justice, Tammy Beck can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Cross disciplinary teams

– Horizontal connected teams at the Drake Chair 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.

Innovation driven organization

– Drake Chair is one of the most innovative firm in sector. Manager in Southern Chair Company: No Time for Sitting Around! Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.






Weaknesses Southern Chair Company: No Time for Sitting Around! | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Southern Chair Company: No Time for Sitting Around! are -

Workers concerns about automation

– As automation is fast increasing in the segment, Drake Chair 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Drake Chair is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Southern Chair Company: No Time for Sitting Around! can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Slow to strategic competitive environment developments

– As Southern Chair Company: No Time for Sitting Around! HBR case study mentions - Drake Chair 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.

Skills based hiring

– The stress on hiring functional specialists at Drake Chair 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.

Need for greater diversity

– Drake Chair 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.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Southern Chair Company: No Time for Sitting Around!, in the dynamic environment Drake Chair has struggled to respond to the nimble upstart competition. Drake Chair has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Slow decision making process

– As mentioned earlier in the report, Drake Chair 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. Drake Chair even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

High cash cycle compare to competitors

Drake Chair 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 operating costs

– Compare to the competitors, firm in the HBR case study Southern Chair Company: No Time for Sitting Around! 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 Drake Chair 's lucrative customers.

Lack of clear differentiation of Drake Chair products

– To increase the profitability and margins on the products, Drake Chair needs to provide more differentiated products than what it is currently offering in the marketplace.

Products dominated business model

– Even though Drake Chair 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 - Southern Chair Company: No Time for Sitting Around! should strive to include more intangible value offerings along with its core products and services.




Opportunities Southern Chair Company: No Time for Sitting Around! | 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 Southern Chair Company: No Time for Sitting Around! are -

Creating value in data economy

– The success of analytics program of Drake Chair has opened avenues for new revenue streams for the organization in the industry. This can help Drake Chair to build a more holistic ecosystem as suggested in the Southern Chair Company: No Time for Sitting Around! case study. Drake Chair can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

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. Drake Chair can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Drake Chair can use these opportunities to build new business models that can help the communities that Drake Chair operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Drake Chair 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, Southern Chair Company: No Time for Sitting Around!, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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 Drake Chair 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.

Developing new processes and practices

– Drake Chair 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Drake Chair is facing challenges because of the dominance of functional experts in the organization. Southern Chair Company: No Time for Sitting Around! 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Drake Chair 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 Drake Chair can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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 Drake Chair in the consumer business. Now Drake Chair can target international markets with far fewer capital restrictions requirements than the existing system.

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. Drake Chair 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. Drake Chair 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.

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. Drake Chair can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Leveraging digital technologies

– Drake Chair 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 Southern Chair Company: No Time for Sitting Around! External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Southern Chair Company: No Time for Sitting Around! are -

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.

Stagnating economy with rate increase

– Drake Chair 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.

Regulatory challenges

– Drake Chair 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.

Increasing wage structure of Drake Chair

– 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 Drake Chair.

Consumer confidence and its impact on Drake Chair 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Drake Chair with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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.

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. Drake Chair can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Environmental challenges

– Drake Chair 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. Drake Chair can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Southern Chair Company: No Time for Sitting Around!, Drake Chair 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 .

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. Drake Chair 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.

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 Drake Chair in the Sales & Marketing sector and impact the bottomline of the organization.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Drake Chair 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 Southern Chair Company: No Time for Sitting Around! 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 Southern Chair Company: No Time for Sitting Around! 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 Southern Chair Company: No Time for Sitting Around! 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 Southern Chair Company: No Time for Sitting Around! 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 Southern Chair Company: No Time for Sitting Around! 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 Drake Chair needs to make to build a sustainable competitive advantage.



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