Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare
VMW is a leader in software virtualization with approximately USD 6.5 billion annual revenue. VMW sells Workstation that can be bought online (store.vmware.com) and is used for running Mac on Windows. Workstation forms a significant portion of store revenues and most of it is bought online. There is rich digital/clickstream data for the visitors which can be combined with their past purchase history and other offline features as well. The business would like to increase sales of the product by targeting the right customers and needs a propensity model to be built using machine learning that can target the right set of customers. Michael Butler, the WW head of the store wants to leverage Parag's data sciences team to help him target the right workstation prospects that visit the store. A business conversation between Michael and Parag is followed by a technical discussion between Ravi, the data scientist and Parag. The following are the key questions that Ravi seeks to answer: -Cross-validation and evaluation in the context of huge imbalance in the data -Feature selection techniques -Communicating internal results such as lift curves back to the business -Different modeling approaches that can be followed -Interpreting the results for business decision making
Swot Analysis of "Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare" written by Kiran R, Arunabha Mukhopadhyay, Dinesh Kumar Unnikrishnan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Workstation Parag facing as an external strategic factors. Some of the topics covered in Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare case study are - Strategic Management Strategies, Customers and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, challanges to central banks by blockchain based private currencies, increasing commodity prices, talent flight as more people leaving formal jobs,
banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Workstation Parag, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Workstation Parag 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 Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare can be done for the following purposes –
1. Strategic planning using facts provided in Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare case study
2. Improving business portfolio management of Workstation Parag
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 Workstation Parag
Strengths Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Workstation Parag in Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare Harvard Business Review case study are -
Ability to recruit top talent
– Workstation Parag is one of the leading recruiters in the industry. Managers in the Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Workstation Parag is one of the most innovative firm in sector. Manager in Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Sales & Marketing field
– Workstation Parag 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 Workstation Parag in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Workstation Parag in the sector have low bargaining power. Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Workstation Parag to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Workstation Parag has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare 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.
Analytics focus
– Workstation Parag 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 Kiran R, Arunabha Mukhopadhyay, Dinesh Kumar Unnikrishnan 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.
Learning organization
- Workstation Parag 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 Workstation Parag is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare firm has clearly differentiated products in the market place. This has enabled Workstation Parag to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Workstation Parag to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Workstation Parag 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.
Highly skilled collaborators
– Workstation Parag 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 Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Workstation Parag has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Workstation Parag to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare are -
Slow to strategic competitive environment developments
– As Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare HBR case study mentions - Workstation Parag 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.
Aligning sales with marketing
– It come across in the case study Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare 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 Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare can leverage the sales team experience to cultivate customer relationships as Workstation Parag is planning to shift buying processes online.
Interest costs
– Compare to the competition, Workstation Parag has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Capital Spending Reduction
– Even during the low interest decade, Workstation Parag 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.
Lack of clear differentiation of Workstation Parag products
– To increase the profitability and margins on the products, Workstation Parag needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare 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 Workstation Parag has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Kiran R, Arunabha Mukhopadhyay, Dinesh Kumar Unnikrishnan suggests that, Workstation Parag 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.
Increasing silos among functional specialists
– The organizational structure of Workstation Parag is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Workstation Parag needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Workstation Parag to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare 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 Workstation Parag 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare, in the dynamic environment Workstation Parag has struggled to respond to the nimble upstart competition. Workstation Parag has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Workstation Parag 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.
Opportunities Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare | 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 Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare are -
Using analytics as competitive advantage
– Workstation Parag 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 Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Workstation Parag to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Workstation Parag is facing challenges because of the dominance of functional experts in the organization. Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Workstation Parag 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 Workstation Parag to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Workstation Parag 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.
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. Workstation Parag 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 Workstation Parag 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.
Better consumer reach
– The expansion of the 5G network will help Workstation Parag to increase its market reach. Workstation Parag 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.
Loyalty marketing
– Workstation Parag 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.
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. Workstation Parag can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Workstation Parag 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Workstation Parag 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.
Buying journey improvements
– Workstation Parag can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare 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.
Creating value in data economy
– The success of analytics program of Workstation Parag has opened avenues for new revenue streams for the organization in the industry. This can help Workstation Parag to build a more holistic ecosystem as suggested in the Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare case study. Workstation Parag can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Workstation Parag 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 Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Workstation Parag with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Workstation Parag
– 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 Workstation Parag.
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. Workstation Parag needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Workstation Parag is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Workstation Parag has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Workstation Parag 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.
Stagnating economy with rate increase
– Workstation Parag 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.
Consumer confidence and its impact on Workstation Parag 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.
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 Workstation Parag 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 Workstation Parag 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare, Workstation Parag 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 .
Environmental challenges
– Workstation Parag 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. Workstation Parag can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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.
Weighted SWOT Analysis of Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare 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 Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare 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 Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare 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 Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare 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 Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare 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 Workstation Parag needs to make to build a sustainable competitive advantage.
