Swot Analysis of "Target Stores: The Hunt for "Unvolunteered Truths"" written by John Deighton, Leora Kornfeld includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Unvolunteered Truths facing as an external strategic factors. Some of the topics covered in Target Stores: The Hunt for "Unvolunteered Truths" case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Target Stores: The Hunt for "Unvolunteered Truths" casestudy better are - – central banks are concerned over increasing inflation, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, technology disruption, supply chains are disrupted by pandemic , geopolitical disruptions, there is backlash against globalization,
challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Target Stores: The Hunt for "Unvolunteered Truths"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Target Stores: The Hunt for "Unvolunteered Truths" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Unvolunteered Truths, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Unvolunteered Truths 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 Target Stores: The Hunt for "Unvolunteered Truths" can be done for the following purposes –
1. Strategic planning using facts provided in Target Stores: The Hunt for "Unvolunteered Truths" case study
2. Improving business portfolio management of Unvolunteered Truths
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 Unvolunteered Truths
Strengths Target Stores: The Hunt for "Unvolunteered Truths" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Unvolunteered Truths in Target Stores: The Hunt for "Unvolunteered Truths" Harvard Business Review case study are -
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Unvolunteered Truths digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Unvolunteered Truths 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.
Learning organization
- Unvolunteered Truths 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 Unvolunteered Truths is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Target Stores: The Hunt for "Unvolunteered Truths" Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Sales & Marketing industry
– Target Stores: The Hunt for "Unvolunteered Truths" firm has clearly differentiated products in the market place. This has enabled Unvolunteered Truths to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Unvolunteered Truths to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Unvolunteered Truths 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.
Analytics focus
– Unvolunteered Truths 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 John Deighton, Leora Kornfeld 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.
Low bargaining power of suppliers
– Suppliers of Unvolunteered Truths in the sector have low bargaining power. Target Stores: The Hunt for "Unvolunteered Truths" has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Unvolunteered Truths to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Unvolunteered Truths in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Unvolunteered Truths has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Unvolunteered Truths 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.
Ability to recruit top talent
– Unvolunteered Truths is one of the leading recruiters in the industry. Managers in the Target Stores: The Hunt for "Unvolunteered Truths" are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Unvolunteered Truths 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 Target Stores: The Hunt for "Unvolunteered Truths" HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Unvolunteered Truths
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Unvolunteered Truths does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Unvolunteered Truths has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Target Stores: The Hunt for "Unvolunteered Truths" 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.
Weaknesses Target Stores: The Hunt for "Unvolunteered Truths" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Target Stores: The Hunt for "Unvolunteered Truths" are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Target Stores: The Hunt for "Unvolunteered Truths", it seems that the employees of Unvolunteered Truths don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Skills based hiring
– The stress on hiring functional specialists at Unvolunteered Truths has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, John Deighton, Leora Kornfeld suggests that, Unvolunteered Truths 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.
No frontier risks strategy
– After analyzing the HBR case study Target Stores: The Hunt for "Unvolunteered Truths", it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow decision making process
– As mentioned earlier in the report, Unvolunteered Truths 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. Unvolunteered Truths 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.
Lack of clear differentiation of Unvolunteered Truths products
– To increase the profitability and margins on the products, Unvolunteered Truths needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Unvolunteered Truths 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.
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 Unvolunteered Truths supply chain. Even after few cautionary changes mentioned in the HBR case study - Target Stores: The Hunt for "Unvolunteered Truths", it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Unvolunteered Truths vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Target Stores: The Hunt for "Unvolunteered Truths", is just above the industry average. Unvolunteered Truths 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 Unvolunteered Truths, firm in the HBR case study Target Stores: The Hunt for "Unvolunteered Truths" needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Unvolunteered Truths is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Unvolunteered Truths needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Unvolunteered Truths to focus more on services rather than just following the product oriented approach.
Opportunities Target Stores: The Hunt for "Unvolunteered Truths" | 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 Target Stores: The Hunt for "Unvolunteered Truths" are -
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. Unvolunteered Truths can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Unvolunteered Truths can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Unvolunteered Truths 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, Target Stores: The Hunt for "Unvolunteered Truths", to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Unvolunteered Truths 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 Target Stores: The Hunt for "Unvolunteered Truths" - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Unvolunteered Truths to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Unvolunteered Truths in the consumer business. Now Unvolunteered Truths can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Unvolunteered Truths can use these opportunities to build new business models that can help the communities that Unvolunteered Truths operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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 Unvolunteered Truths 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Unvolunteered Truths is facing challenges because of the dominance of functional experts in the organization. Target Stores: The Hunt for "Unvolunteered Truths" 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.
Developing new processes and practices
– Unvolunteered Truths 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, Unvolunteered Truths 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.
Buying journey improvements
– Unvolunteered Truths can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Target Stores: The Hunt for "Unvolunteered Truths" 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Unvolunteered Truths 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 Unvolunteered Truths can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Target Stores: The Hunt for "Unvolunteered Truths" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Target Stores: The Hunt for "Unvolunteered Truths" are -
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 Unvolunteered Truths.
Consumer confidence and its impact on Unvolunteered Truths 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.
Stagnating economy with rate increase
– Unvolunteered Truths 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
– Unvolunteered Truths 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.
Increasing wage structure of Unvolunteered Truths
– 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 Unvolunteered Truths.
Shortening product life cycle
– it is one of the major threat that Unvolunteered Truths is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Unvolunteered Truths needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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 Unvolunteered Truths in the Sales & Marketing sector and impact the bottomline of the organization.
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. Unvolunteered Truths can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Unvolunteered Truths business can come under increasing regulations regarding data privacy, data security, etc.
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. Unvolunteered Truths 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.
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.
Weighted SWOT Analysis of Target Stores: The Hunt for "Unvolunteered Truths" 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 Target Stores: The Hunt for "Unvolunteered Truths" 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 Target Stores: The Hunt for "Unvolunteered Truths" 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 Target Stores: The Hunt for "Unvolunteered Truths" 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 Target Stores: The Hunt for "Unvolunteered Truths" 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 Unvolunteered Truths needs to make to build a sustainable competitive advantage.