Making a Market: eBay, StubHub, and Swaptree SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Making a Market: eBay, StubHub, and Swaptree
This case is comprised of three concise vignettes describing three different online commerce sites: eBay, StubHub, and Swaptree. All three have become viable companies very quickly. From their experiences, lessons can be learned about making a market. This case can be used for students to compare and contrast the three different systems as well as analyze who the beneficiaries are of the new markets these companies have created. This case is included in Module 1 of the course Business Thought & Action.
Swot Analysis of "Making a Market: eBay, StubHub, and Swaptree" written by Robert J. Dolan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Swaptree Stubhub facing as an external strategic factors. Some of the topics covered in Making a Market: eBay, StubHub, and Swaptree case study are - Strategic Management Strategies, Pricing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Making a Market: eBay, StubHub, and Swaptree casestudy better are - – increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing,
supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Making a Market: eBay, StubHub, and Swaptree
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Making a Market: eBay, StubHub, and Swaptree case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Swaptree Stubhub, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Swaptree Stubhub 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 Making a Market: eBay, StubHub, and Swaptree can be done for the following purposes –
1. Strategic planning using facts provided in Making a Market: eBay, StubHub, and Swaptree case study
2. Improving business portfolio management of Swaptree Stubhub
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 Swaptree Stubhub
Strengths Making a Market: eBay, StubHub, and Swaptree | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Swaptree Stubhub in Making a Market: eBay, StubHub, and Swaptree Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Making a Market: eBay, StubHub, and Swaptree 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.
Strong track record of project management
– Swaptree Stubhub is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Sales & Marketing field
– Swaptree Stubhub 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 Swaptree Stubhub in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Swaptree Stubhub has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Swaptree Stubhub 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.
High switching costs
– The high switching costs that Swaptree Stubhub 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.
Superior customer experience
– The customer experience strategy of Swaptree Stubhub in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Swaptree Stubhub is one of the most innovative firm in sector. Manager in Making a Market: eBay, StubHub, and Swaptree Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Swaptree Stubhub is present in almost all the verticals within the industry. This has provided firm in Making a Market: eBay, StubHub, and Swaptree 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Swaptree Stubhub digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Swaptree Stubhub 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.
Low bargaining power of suppliers
– Suppliers of Swaptree Stubhub in the sector have low bargaining power. Making a Market: eBay, StubHub, and Swaptree has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Swaptree Stubhub to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Swaptree Stubhub 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 Swaptree Stubhub is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Making a Market: eBay, StubHub, and Swaptree Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Swaptree Stubhub is one of the leading recruiters in the industry. Managers in the Making a Market: eBay, StubHub, and Swaptree are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Making a Market: eBay, StubHub, and Swaptree | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Making a Market: eBay, StubHub, and Swaptree are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Swaptree Stubhub is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Making a Market: eBay, StubHub, and Swaptree can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Swaptree Stubhub 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.
Aligning sales with marketing
– It come across in the case study Making a Market: eBay, StubHub, and Swaptree 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 Making a Market: eBay, StubHub, and Swaptree can leverage the sales team experience to cultivate customer relationships as Swaptree Stubhub is planning to shift buying processes online.
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 Swaptree Stubhub supply chain. Even after few cautionary changes mentioned in the HBR case study - Making a Market: eBay, StubHub, and Swaptree, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Swaptree Stubhub vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Making a Market: eBay, StubHub, and Swaptree 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 Swaptree Stubhub has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert J. Dolan suggests that, Swaptree Stubhub 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 strategic competitive environment developments
– As Making a Market: eBay, StubHub, and Swaptree HBR case study mentions - Swaptree Stubhub 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 cash cycle compare to competitors
Swaptree Stubhub 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Making a Market: eBay, StubHub, and Swaptree, is just above the industry average. Swaptree Stubhub 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.
Low market penetration in new markets
– Outside its home market of Swaptree Stubhub, firm in the HBR case study Making a Market: eBay, StubHub, and Swaptree needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Making a Market: eBay, StubHub, and Swaptree 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 Swaptree Stubhub 's lucrative customers.
Opportunities Making a Market: eBay, StubHub, and Swaptree | 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 Making a Market: eBay, StubHub, and Swaptree are -
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 Swaptree Stubhub 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.
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 Swaptree Stubhub in the consumer business. Now Swaptree Stubhub can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Swaptree Stubhub is facing challenges because of the dominance of functional experts in the organization. Making a Market: eBay, StubHub, and Swaptree 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.
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. Swaptree Stubhub can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Swaptree Stubhub 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Swaptree Stubhub 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.
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. Swaptree Stubhub can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Swaptree Stubhub 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.
Using analytics as competitive advantage
– Swaptree Stubhub 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 Making a Market: eBay, StubHub, and Swaptree - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Swaptree Stubhub to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Swaptree Stubhub 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.
Creating value in data economy
– The success of analytics program of Swaptree Stubhub has opened avenues for new revenue streams for the organization in the industry. This can help Swaptree Stubhub to build a more holistic ecosystem as suggested in the Making a Market: eBay, StubHub, and Swaptree case study. Swaptree Stubhub can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Swaptree Stubhub 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. Swaptree Stubhub 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.
Buying journey improvements
– Swaptree Stubhub can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Making a Market: eBay, StubHub, and Swaptree 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.
Threats Making a Market: eBay, StubHub, and Swaptree External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Making a Market: eBay, StubHub, and Swaptree are -
Technology acceleration in Forth Industrial Revolution
– Swaptree Stubhub has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Swaptree Stubhub 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.
Shortening product life cycle
– it is one of the major threat that Swaptree Stubhub is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Making a Market: eBay, StubHub, and Swaptree, Swaptree Stubhub 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 .
Consumer confidence and its impact on Swaptree Stubhub 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.
Environmental challenges
– Swaptree Stubhub 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. Swaptree Stubhub can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
High dependence on third party suppliers
– Swaptree Stubhub 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 Swaptree Stubhub in the Sales & Marketing sector and impact the bottomline of the organization.
Increasing wage structure of Swaptree Stubhub
– 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 Swaptree Stubhub.
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 Swaptree Stubhub business can come under increasing regulations regarding data privacy, data security, etc.
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 Swaptree Stubhub.
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. Swaptree Stubhub 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Swaptree Stubhub 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 Making a Market: eBay, StubHub, and Swaptree .
Regulatory challenges
– Swaptree Stubhub 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.
Weighted SWOT Analysis of Making a Market: eBay, StubHub, and Swaptree 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 Making a Market: eBay, StubHub, and Swaptree 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 Making a Market: eBay, StubHub, and Swaptree 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 Making a Market: eBay, StubHub, and Swaptree 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 Making a Market: eBay, StubHub, and Swaptree 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 Swaptree Stubhub needs to make to build a sustainable competitive advantage.
