Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
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
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 - – increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, increasing energy prices,
increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
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.
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
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 -
Training and development
– Axioms Media has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy firm has clearly differentiated products in the market place. This has enabled Axioms Media to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Axioms Media to invest into research and development (R&D) and innovation.
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.
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.
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.
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.
Operational resilience
– The operational resilience strategy in the Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy 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.
Strong track record of project management
– Axioms Media is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
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.
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 -
Lack of clear differentiation of Axioms Media products
– To increase the profitability and margins on the products, Axioms Media needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Axioms Media 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.
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.
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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy 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 Axioms Media has relatively successful track record of launching new products.
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.
Slow to strategic competitive environment developments
– As Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy HBR case study mentions - Axioms Media 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy, it seems that the employees of Axioms Media 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.
Interest costs
– Compare to the competition, Axioms Media 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.
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 Axioms Media supply chain. Even after few cautionary changes mentioned in the HBR case study - Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Axioms Media vulnerable to further global disruptions in South East Asia.
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.
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 -
Manufacturing automation
– Axioms Media 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.
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.
Better consumer reach
– The expansion of the 5G network will help Axioms Media to increase its market reach. Axioms Media 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.
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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Axioms Media 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, Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implications for International Marketing Strategy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Axioms Media can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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 Axioms Media in the consumer business. Now Axioms Media can target international markets with far fewer capital restrictions requirements than the existing system.
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 -
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.
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.
Increasing wage structure of Axioms Media
– 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 Axioms Media.
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.
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.
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 .
Environmental challenges
– Axioms Media 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. Axioms Media 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. Axioms Media needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Axioms Media in the Sales & Marketing sector and impact the bottomline of the organization.
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.
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.
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.
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 .
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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