Online Metrics: What Are You Measuring and Why? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Online Metrics: What Are You Measuring and Why?
Unlike traditional marketers who must wait days if not weeks to measure the effectiveness of their campaigns, online marketers are confronted with an ocean of data which can be tracked and measured in near real-time. Despite the volume of data and powerful tools available to online marketers (at free to low cost, making analytics as affordable for startups to fortune 500) online metrics are widely misunderstood, misapplied and often misused to say much more that they should. Understanding how online metrics work, what they measure and which of them are most relevant based on specific marketing functions and campaign goals is a valuable skill for every marketer. This note frames online metrics in the context of campaign goals (from search marketing to back-end analytics) while discussing the various marketing functions (from display advertising to brand management) that benefit as a result of access to specific metrics. Throughout the note, each metric is placed along an ROI Continuum designed to add insight as to the role of each metric over time as it relates to a firm's bottom line.
Swot Analysis of "Online Metrics: What Are You Measuring and Why?" written by Raymond Pirouz, Neil Bendle includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Metrics Online facing as an external strategic factors. Some of the topics covered in Online Metrics: What Are You Measuring and Why? case study are - Strategic Management Strategies, Performance measurement and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Online Metrics: What Are You Measuring and Why? casestudy better are - – increasing commodity prices, increasing household debt because of falling income levels, there is backlash against globalization, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices,
talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Online Metrics: What Are You Measuring and Why?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Online Metrics: What Are You Measuring and Why? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Metrics Online, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Metrics Online 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 Online Metrics: What Are You Measuring and Why? can be done for the following purposes –
1. Strategic planning using facts provided in Online Metrics: What Are You Measuring and Why? case study
2. Improving business portfolio management of Metrics Online
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 Metrics Online
Strengths Online Metrics: What Are You Measuring and Why? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Metrics Online in Online Metrics: What Are You Measuring and Why? Harvard Business Review case study are -
Training and development
– Metrics Online has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Online Metrics: What Are You Measuring and Why? 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.
Effective Research and Development (R&D)
– Metrics Online 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 Online Metrics: What Are You Measuring and Why? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Sales & Marketing industry
– Online Metrics: What Are You Measuring and Why? firm has clearly differentiated products in the market place. This has enabled Metrics Online to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Metrics Online to invest into research and development (R&D) and innovation.
Strong track record of project management
– Metrics Online is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Metrics Online has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Metrics Online to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Metrics Online has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Metrics Online 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
– Metrics Online is one of the leading recruiters in the industry. Managers in the Online Metrics: What Are You Measuring and Why? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Metrics Online in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Metrics Online in the sector have low bargaining power. Online Metrics: What Are You Measuring and Why? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Metrics Online to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Metrics Online 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 Raymond Pirouz, Neil Bendle can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Cross disciplinary teams
– Horizontal connected teams at the Metrics Online 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Metrics Online digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Metrics Online 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.
Weaknesses Online Metrics: What Are You Measuring and Why? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Online Metrics: What Are You Measuring and Why? are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Online Metrics: What Are You Measuring and Why?, is just above the industry average. Metrics Online 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.
No frontier risks strategy
– After analyzing the HBR case study Online Metrics: What Are You Measuring and Why?, 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.
Products dominated business model
– Even though Metrics Online has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Online Metrics: What Are You Measuring and Why? should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Metrics Online 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, Raymond Pirouz, Neil Bendle suggests that, Metrics Online 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.
Interest costs
– Compare to the competition, Metrics Online 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.
Slow decision making process
– As mentioned earlier in the report, Metrics Online 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. Metrics Online 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.
Increasing silos among functional specialists
– The organizational structure of Metrics Online is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Metrics Online needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Metrics Online to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Metrics Online 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Online Metrics: What Are You Measuring and Why?, it seems that the employees of Metrics Online 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Online Metrics: What Are You Measuring and Why?, in the dynamic environment Metrics Online has struggled to respond to the nimble upstart competition. Metrics Online has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Online Metrics: What Are You Measuring and Why? | 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 Online Metrics: What Are You Measuring and Why? are -
Creating value in data economy
– The success of analytics program of Metrics Online has opened avenues for new revenue streams for the organization in the industry. This can help Metrics Online to build a more holistic ecosystem as suggested in the Online Metrics: What Are You Measuring and Why? case study. Metrics Online can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Metrics Online 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 Online Metrics: What Are You Measuring and Why? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Metrics Online to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Metrics Online to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Developing new processes and practices
– Metrics Online 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.
Learning at scale
– Online learning technologies has now opened space for Metrics Online 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.
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. Metrics Online 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. Metrics Online 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.
Leveraging digital technologies
– Metrics Online 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.
Building a culture of innovation
– managers at Metrics Online can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
Buying journey improvements
– Metrics Online can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Online Metrics: What Are You Measuring and Why? 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Metrics Online can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Metrics Online 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Metrics Online 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.
Better consumer reach
– The expansion of the 5G network will help Metrics Online to increase its market reach. Metrics Online 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.
Threats Online Metrics: What Are You Measuring and Why? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Online Metrics: What Are You Measuring and Why? are -
High dependence on third party suppliers
– Metrics Online 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Online Metrics: What Are You Measuring and Why?, Metrics Online 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
– Metrics Online 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. Metrics Online 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Metrics Online 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 Online Metrics: What Are You Measuring and Why? .
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. Metrics Online 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.
Shortening product life cycle
– it is one of the major threat that Metrics Online is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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 Metrics Online business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Metrics Online with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Metrics Online needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Metrics Online 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Metrics Online in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Weighted SWOT Analysis of Online Metrics: What Are You Measuring and Why? 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 Online Metrics: What Are You Measuring and Why? 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 Online Metrics: What Are You Measuring and Why? 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 Online Metrics: What Are You Measuring and Why? 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 Online Metrics: What Are You Measuring and Why? 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 Metrics Online needs to make to build a sustainable competitive advantage.