Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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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 - – customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, wage bills are increasing, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, increasing transportation and logistics costs,
competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , 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 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.
Superior customer experience
– The customer experience strategy of Workstation Parag 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 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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Workstation Parag 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
– 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.
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.
Successful track record of launching new products
– Workstation Parag has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Workstation Parag 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.
Effective Research and Development (R&D)
– Workstation Parag 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 Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Workstation Parag digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Workstation Parag has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– 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.
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.
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.
Low market penetration in new markets
– Outside its home market of Workstation Parag, firm in the HBR case study Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Workstation Parag 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.
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 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare, is just above the industry average. Workstation Parag 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.
Need for greater diversity
– Workstation Parag 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 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Workstation Parag is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Machine Learning Algorithms to Drive CRM in the Online E-Commerce Site at VMWare can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 -
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.
Leveraging digital technologies
– Workstation Parag 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.
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.
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.
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.
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.
Developing new processes and practices
– Workstation Parag 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.
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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Workstation Parag can use these opportunities to build new business models that can help the communities that Workstation Parag operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Workstation Parag can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 -
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. Workstation Parag 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 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.
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. Workstation Parag can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 .
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.
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.
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.
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.
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 Workstation Parag.
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.
High dependence on third party suppliers
– Workstation Parag 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.
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.
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.