Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy

The 21st century has brought both opportunities and challenges in our global, boundary-less world. Importantly, managers face a dynamic and interconnected international environment. As such, 21st century managers need to consider the many opportunities and threats that Web 2.0, social media, and creative consumers present and the resulting respective shifts in loci of activity, power, and value. To help managers understand this new dispensation, we propose five axioms: (1) social media are always a function of the technology, culture, and government of a particular country or context; (2) local events rarely remain local; (3) global events are likely to be (re)interpreted locally; (4) creative consumers' actions and creations are also dependent on technology, culture, and government; and (5) technology is historically dependent. At the heart of these axioms is the managerial recommendation to continually stay up to date on technology, customers, and social media. To implement this managerial recommendation, marketers must truly engage customers, embrace technology, limit the power of bureaucracy, train and invest in their employees, and inform senior management about the opportunities of social media.

Authors :: Pierre R. Berthon, Leyland Pitt, Kirk Plangger, Daniel Shapiro

Topics :: Sales & Marketing

Tags :: IT, Marketing, Social platforms, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy" written by Pierre R. Berthon, Leyland Pitt, Kirk Plangger, Daniel Shapiro includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Axioms Media facing as an external strategic factors. Some of the topics covered in Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy case study are - Strategic Management Strategies, IT, Marketing, Social platforms and Sales & Marketing.

Some of the macro environment factors that can be used to understand the Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, geopolitical disruptions, increasing energy prices, central banks are concerned over increasing inflation, etc

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Introduction to SWOT Analysis of Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Axioms Media, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Axioms Media 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy can be done for the following purposes –
1. Strategic planning using facts provided in Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy case study
2. Improving business portfolio management of Axioms Media
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 Axioms Media

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Strengths Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Axioms Media in Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy Harvard Business Review case study are -

Superior customer experience

– The customer experience strategy of Axioms Media in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Organizational Resilience of Axioms Media

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Axioms Media does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Ability to recruit top talent

– Axioms Media is one of the leading recruiters in the industry. Managers in the Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Cross disciplinary teams

– Horizontal connected teams at the Axioms Media 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.

Learning organization

- Axioms Media 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 Axioms Media is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Effective Research and Development (R&D)

– Axioms Media 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 Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Innovation driven organization

– Axioms Media is one of the most innovative firm in sector. Manager in Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Low bargaining power of suppliers

– Suppliers of Axioms Media in the sector have low bargaining power. Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Axioms Media to manage not only supply disruptions but also source products at highly competitive prices.

High switching costs

– The high switching costs that Axioms Media 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.

Digital Transformation in Sales & Marketing segment

- digital transformation varies from industry to industry. For Axioms Media digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Axioms Media 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.

Analytics focus

– Axioms Media 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 Pierre R. Berthon, Leyland Pitt, Kirk Plangger, Daniel Shapiro can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Successful track record of launching new products

– Axioms Media has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Axioms Media 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.

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Weaknesses Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy are -

Need for greater diversity

– Axioms Media has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy, in the dynamic environment Axioms Media has struggled to respond to the nimble upstart competition. Axioms Media has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High cash cycle compare to competitors

Axioms Media 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.

High bargaining power of channel partners

– Because of the regulatory requirements, Pierre R. Berthon, Leyland Pitt, Kirk Plangger, Daniel Shapiro suggests that, Axioms Media 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Axioms Media is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy 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 Axioms Media, firm in the HBR case study Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Aligning sales with marketing

– It come across in the case study Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy 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 Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy can leverage the sales team experience to cultivate customer relationships as Axioms Media is planning to shift buying processes online.

Workers concerns about automation

– As automation is fast increasing in the segment, Axioms Media needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

No frontier risks strategy

– After analyzing the HBR case study Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy, 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.

Skills based hiring

– The stress on hiring functional specialists at Axioms Media 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.

Products dominated business model

– Even though Axioms Media 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 - Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy should strive to include more intangible value offerings along with its core products and services.

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Opportunities Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy | 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 Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy are -

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Axioms Media 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 Axioms Media to hire the very best people irrespective of their geographical location.

Using analytics as competitive advantage

– Axioms Media 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 Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Axioms Media to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Buying journey improvements

– Axioms Media can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy 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.

Loyalty marketing

– Axioms Media 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.

Developing new processes and practices

– Axioms Media 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Axioms Media can use these opportunities to build new business models that can help the communities that Axioms Media operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.

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. Axioms Media 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. Axioms Media 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.

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. Axioms Media can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Leveraging digital technologies

– Axioms Media can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Axioms Media 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Axioms Media 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.

Creating value in data economy

– The success of analytics program of Axioms Media has opened avenues for new revenue streams for the organization in the industry. This can help Axioms Media to build a more holistic ecosystem as suggested in the Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy case study. Axioms Media can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Learning at scale

– Online learning technologies has now opened space for Axioms Media 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.

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Threats Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy are -

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.

Consumer confidence and its impact on Axioms Media 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Axioms Media with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy, Axioms Media 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 .

Shortening product life cycle

– it is one of the major threat that Axioms Media is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

High dependence on third party suppliers

– Axioms Media high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Technology acceleration in Forth Industrial Revolution

– Axioms Media has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Axioms Media 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

– Axioms Media 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.

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. Axioms Media can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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. Axioms Media 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.

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, Axioms Media 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 Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy .

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Axioms Media 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.

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Weighted SWOT Analysis of Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy 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 Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy 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 Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy 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 Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy 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 Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy 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 Axioms Media needs to make to build a sustainable competitive advantage.

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