A Plan to Invent the Marketing We Need Today SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of A Plan to Invent the Marketing We Need Today
This is an MIT Sloan Management Review article. The world in which marketing operates has fundamentally changed. Has marketing research and practice kept up? The answer, says the author, is no. At the heart of the current trouble is a severance of academic rigor from managerial relevance. Through its maturation as a discipline over the past half century, marketing science in academia has emerged as a rigorous field. Conjoint analysis, econometric modeling, techniques derived from mathematical psychology, and many other tools and approaches have revolutionized its practice. But many of the most rigorous tools were developed years ago, in response to old problems. And managers and organizations increasingly find those tools irrelevant to the new challenges they face. So business practitioners adopt approaches that appear to address their real and current marketing problems but that lack the rigor of the academically established methods. Now, argues the author, we need to rethink and transform the field of marketing so it balances rigor and relevance. He details seven strategies that would help achieve that aim: Bridge the disciplinary silos. Shift from traditional management to network orchestration. Change the focus from customer relationship management (CRM) to customer managed relationships (CMR). Shift from company-branded products to customer-branded solutions. Use analytics and metrics as the glue. Adopt the adaptive experimentation philosophy for all your activities and strive for empirical generalizations. And, challenge (and change) your mental models. And how to pursue those strategies? In a collaboration between both practitioners and academic researchers, says the author. (Editor's Note: This article is excerpted from a paper the author presented when he accepted MIT's 2007 Buck Weaver Award, which recognizes individuals who have made important contributions to the advancement of theory and practice in marketing science.)
Swot Analysis of "A Plan to Invent the Marketing We Need Today" written by Yoram (jerry) Wind includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rigor Author facing as an external strategic factors. Some of the topics covered in A Plan to Invent the Marketing We Need Today case study are - Strategic Management Strategies, Marketing, Organizational culture and Sales & Marketing.
Some of the macro environment factors that can be used to understand the A Plan to Invent the Marketing We Need Today casestudy better are - – there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, wage bills are increasing, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs,
challanges to central banks by blockchain based private currencies, there is backlash against globalization, etc
Introduction to SWOT Analysis of A Plan to Invent the Marketing We Need Today
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A Plan to Invent the Marketing We Need Today case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rigor Author, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rigor Author 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 A Plan to Invent the Marketing We Need Today can be done for the following purposes –
1. Strategic planning using facts provided in A Plan to Invent the Marketing We Need Today case study
2. Improving business portfolio management of Rigor Author
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 Rigor Author
Strengths A Plan to Invent the Marketing We Need Today | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rigor Author in A Plan to Invent the Marketing We Need Today Harvard Business Review case study are -
Successful track record of launching new products
– Rigor Author has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rigor Author 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.
Analytics focus
– Rigor Author 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 Yoram (jerry) Wind 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.
Operational resilience
– The operational resilience strategy in the A Plan to Invent the Marketing We Need Today 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.
Low bargaining power of suppliers
– Suppliers of Rigor Author in the sector have low bargaining power. A Plan to Invent the Marketing We Need Today has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rigor Author to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Rigor Author is one of the most innovative firm in sector. Manager in A Plan to Invent the Marketing We Need Today Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Rigor Author has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Superior customer experience
– The customer experience strategy of Rigor Author in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Rigor Author 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 A Plan to Invent the Marketing We Need Today HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Rigor Author has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rigor Author to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Rigor Author 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 Rigor Author is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in A Plan to Invent the Marketing We Need Today Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Rigor Author 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.
Diverse revenue streams
– Rigor Author is present in almost all the verticals within the industry. This has provided firm in A Plan to Invent the Marketing We Need Today case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Weaknesses A Plan to Invent the Marketing We Need Today | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A Plan to Invent the Marketing We Need Today are -
Interest costs
– Compare to the competition, Rigor Author 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.
No frontier risks strategy
– After analyzing the HBR case study A Plan to Invent the Marketing We Need Today, 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.
Lack of clear differentiation of Rigor Author products
– To increase the profitability and margins on the products, Rigor Author needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Yoram (jerry) Wind suggests that, Rigor Author 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.
High cash cycle compare to competitors
Rigor Author 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.
Products dominated business model
– Even though Rigor Author 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 - A Plan to Invent the Marketing We Need Today should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study A Plan to Invent the Marketing We Need Today, in the dynamic environment Rigor Author has struggled to respond to the nimble upstart competition. Rigor Author has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Rigor Author is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Rigor Author needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Rigor Author 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 A Plan to Invent the Marketing We Need Today 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 Rigor Author 's lucrative customers.
Need for greater diversity
– Rigor Author 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the A Plan to Invent the Marketing We Need Today 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 Rigor Author has relatively successful track record of launching new products.
Opportunities A Plan to Invent the Marketing We Need Today | 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 A Plan to Invent the Marketing We Need Today are -
Creating value in data economy
– The success of analytics program of Rigor Author has opened avenues for new revenue streams for the organization in the industry. This can help Rigor Author to build a more holistic ecosystem as suggested in the A Plan to Invent the Marketing We Need Today case study. Rigor Author can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Rigor Author 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. Rigor Author 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.
Learning at scale
– Online learning technologies has now opened space for Rigor Author 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Rigor Author can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Rigor Author in the consumer business. Now Rigor Author can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Rigor Author 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 Rigor Author to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Rigor Author is facing challenges because of the dominance of functional experts in the organization. A Plan to Invent the Marketing We Need Today case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Rigor Author can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Rigor Author can use these opportunities to build new business models that can help the communities that Rigor Author operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Using analytics as competitive advantage
– Rigor Author 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 A Plan to Invent the Marketing We Need Today - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rigor Author to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Rigor Author 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.
Leveraging digital technologies
– Rigor Author 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.
Buying journey improvements
– Rigor Author can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. A Plan to Invent the Marketing We Need Today suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Threats A Plan to Invent the Marketing We Need Today External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A Plan to Invent the Marketing We Need Today are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rigor Author with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Rigor Author can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Rigor Author 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.
Environmental challenges
– Rigor Author 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. Rigor Author can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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. Rigor Author needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Consumer confidence and its impact on Rigor Author 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.
Technology acceleration in Forth Industrial Revolution
– Rigor Author has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Rigor Author 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.
Regulatory challenges
– Rigor Author needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Increasing wage structure of Rigor Author
– 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 Rigor Author.
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 Rigor Author business can come under increasing regulations regarding data privacy, data security, etc.
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 Rigor Author in the Sales & Marketing sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study A Plan to Invent the Marketing We Need Today, Rigor Author 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Rigor Author 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 A Plan to Invent the Marketing We Need Today .
Weighted SWOT Analysis of A Plan to Invent the Marketing We Need Today 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 A Plan to Invent the Marketing We Need Today 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 A Plan to Invent the Marketing We Need Today 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 A Plan to Invent the Marketing We Need Today 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 A Plan to Invent the Marketing We Need Today 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 Rigor Author needs to make to build a sustainable competitive advantage.