The Branding of Club AtlA?tico de Madrid: Local or Global? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Branding of Club AtlA?tico de Madrid: Local or Global?
With four percent of the world's population involved in a sport that generated nearly $3.1 billion in annual revenue, it is no wonder that football clubs were seeking to capitalize on global opportunities. However, as football clubs moved beyond their traditional borders, they confronted the realities of globalization and struggled to determine how to evolve their marketing strategies to differentiate their brand among the competition. Club AtlA?tico de Madrid (AtlA?tico Madrid) was facing such a problem in 2008. Despite a rich history, loyal fan support, and even recent steps to internationalize-such as celebrity endorsements and exhibition matches against U.S. teams-the Club remained largely a Spanish brand and in the shadow of its cross-town rival Real Madrid on the world stage. It was the end of the 2007/2008 football season, and Club AtlA?tico de Madrid appeared to have turned a corner in terms of performance on the field. The Club had recently completed its best season in ten years, finishing fourth in Spain's top professional league. However, the Club's revenue growth did not match expectations. Just one year earlier, CEO Miguel Angel Gil Marin had stated the following goal: "our brand will help us to double revenues in two years." Although he had added that the "AtlA?tico Madrid" brand was a valuable asset very familiar among Spaniards, he had also admitted that the Club would need to adapt to the increasing globalization of football. The Club was committed to increasing revenue through a renewed focus on marketing and brand building intended to increase awareness and attractiveness of the AtlA?tico Madrid brand. But how could the Club achieve this? Should and could it try to make AtlA?tico Madrid a household name around the world?
Swot Analysis of "The Branding of Club AtlA?tico de Madrid: Local or Global?" written by Jeffrey W. Overby includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Atla Tico facing as an external strategic factors. Some of the topics covered in The Branding of Club AtlA?tico de Madrid: Local or Global? case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the The Branding of Club AtlA?tico de Madrid: Local or Global? casestudy better are - – talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, there is backlash against globalization, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google,
technology disruption, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of The Branding of Club AtlA?tico de Madrid: Local or Global?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Branding of Club AtlA?tico de Madrid: Local or Global? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Atla Tico, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Atla Tico 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 The Branding of Club AtlA?tico de Madrid: Local or Global? can be done for the following purposes –
1. Strategic planning using facts provided in The Branding of Club AtlA?tico de Madrid: Local or Global? case study
2. Improving business portfolio management of Atla Tico
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 Atla Tico
Strengths The Branding of Club AtlA?tico de Madrid: Local or Global? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Atla Tico in The Branding of Club AtlA?tico de Madrid: Local or Global? Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Atla Tico 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
– Atla Tico has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Atla Tico 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.
Low bargaining power of suppliers
– Suppliers of Atla Tico in the sector have low bargaining power. The Branding of Club AtlA?tico de Madrid: Local or Global? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Atla Tico to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Sales & Marketing field
– Atla Tico 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 Atla Tico in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Atla Tico is present in almost all the verticals within the industry. This has provided firm in The Branding of Club AtlA?tico de Madrid: Local or Global? 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.
Learning organization
- Atla Tico 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 Atla Tico is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Branding of Club AtlA?tico de Madrid: Local or Global? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Atla Tico 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 The Branding of Club AtlA?tico de Madrid: Local or Global? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Sales & Marketing industry
– The Branding of Club AtlA?tico de Madrid: Local or Global? firm has clearly differentiated products in the market place. This has enabled Atla Tico to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Atla Tico to invest into research and development (R&D) and innovation.
High brand equity
– Atla Tico has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Atla Tico to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Atla Tico has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Branding of Club AtlA?tico de Madrid: Local or Global? 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.
Cross disciplinary teams
– Horizontal connected teams at the Atla Tico 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.
Strong track record of project management
– Atla Tico is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses The Branding of Club AtlA?tico de Madrid: Local or Global? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Branding of Club AtlA?tico de Madrid: Local or Global? are -
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 Atla Tico supply chain. Even after few cautionary changes mentioned in the HBR case study - The Branding of Club AtlA?tico de Madrid: Local or Global?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Atla Tico vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Branding of Club AtlA?tico de Madrid: Local or Global?, in the dynamic environment Atla Tico has struggled to respond to the nimble upstart competition. Atla Tico has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study The Branding of Club AtlA?tico de Madrid: Local or Global? that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case The Branding of Club AtlA?tico de Madrid: Local or Global? can leverage the sales team experience to cultivate customer relationships as Atla Tico is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Atla Tico 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.
Increasing silos among functional specialists
– The organizational structure of Atla Tico is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Atla Tico needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Atla Tico to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Atla Tico 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. Atla Tico 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.
Skills based hiring
– The stress on hiring functional specialists at Atla Tico 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.
Slow to strategic competitive environment developments
– As The Branding of Club AtlA?tico de Madrid: Local or Global? HBR case study mentions - Atla Tico 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Atla Tico is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Branding of Club AtlA?tico de Madrid: Local or Global? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Atla Tico, firm in the HBR case study The Branding of Club AtlA?tico de Madrid: Local or Global? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Atla Tico 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 - The Branding of Club AtlA?tico de Madrid: Local or Global? should strive to include more intangible value offerings along with its core products and services.
Opportunities The Branding of Club AtlA?tico de Madrid: Local or Global? | 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 The Branding of Club AtlA?tico de Madrid: Local or Global? are -
Developing new processes and practices
– Atla Tico 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
– Atla Tico 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.
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 Atla Tico 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.
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. Atla Tico can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Atla Tico 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Atla Tico 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, The Branding of Club AtlA?tico de Madrid: Local or Global?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Atla Tico 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 Atla Tico to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Atla Tico 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.
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. Atla Tico 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. Atla Tico 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.
Buying journey improvements
– Atla Tico can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Branding of Club AtlA?tico de Madrid: Local or Global? 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.
Building a culture of innovation
– managers at Atla Tico 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.
Using analytics as competitive advantage
– Atla Tico 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 The Branding of Club AtlA?tico de Madrid: Local or Global? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Atla Tico to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Atla Tico 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.
Threats The Branding of Club AtlA?tico de Madrid: Local or Global? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Branding of Club AtlA?tico de Madrid: Local or Global? are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Atla Tico 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 The Branding of Club AtlA?tico de Madrid: Local or Global? .
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 Atla Tico business can come under increasing regulations regarding data privacy, data security, etc.
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.
Shortening product life cycle
– it is one of the major threat that Atla Tico is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Atla Tico 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.
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 Atla Tico.
Environmental challenges
– Atla Tico 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. Atla Tico can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Technology acceleration in Forth Industrial Revolution
– Atla Tico has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Atla Tico 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.
Increasing wage structure of Atla Tico
– 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 Atla Tico.
Regulatory challenges
– Atla Tico 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.
High dependence on third party suppliers
– Atla Tico 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Atla Tico 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Atla Tico with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of The Branding of Club AtlA?tico de Madrid: Local or Global? 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 The Branding of Club AtlA?tico de Madrid: Local or Global? 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 The Branding of Club AtlA?tico de Madrid: Local or Global? 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 The Branding of Club AtlA?tico de Madrid: Local or Global? 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 The Branding of Club AtlA?tico de Madrid: Local or Global? 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 Atla Tico needs to make to build a sustainable competitive advantage.
