Bridge the Gap Between Strategy and Tactics with the Magic Matrix SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Bridge the Gap Between Strategy and Tactics with the Magic Matrix
Describes the Magic Matrix, which is both a chart and a process that enables executives to manage their product/service lines, and market segments and accounts simultaneously. The Magic Matrix has proven to be a powerful planning and analysis tool for such processes as sales forecasting, profitability analysis, and resource allocation. Explains, in detail, various forms of the Magic Matrix and how they can be used in a wide variety of management processes.
Swot Analysis of "Bridge the Gap Between Strategy and Tactics with the Magic Matrix" written by Benson P. Shapiro, Jonathan Byrnes includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Magic Matrix facing as an external strategic factors. Some of the topics covered in Bridge the Gap Between Strategy and Tactics with the Magic Matrix case study are - Strategic Management Strategies, Forecasting, Marketing, Strategic planning and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Bridge the Gap Between Strategy and Tactics with the Magic Matrix casestudy better are - – supply chains are disrupted by pandemic , increasing commodity prices, increasing transportation and logistics costs, 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, talent flight as more people leaving formal jobs,
central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Bridge the Gap Between Strategy and Tactics with the Magic Matrix
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bridge the Gap Between Strategy and Tactics with the Magic Matrix case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Magic Matrix, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Magic Matrix 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 Bridge the Gap Between Strategy and Tactics with the Magic Matrix can be done for the following purposes –
1. Strategic planning using facts provided in Bridge the Gap Between Strategy and Tactics with the Magic Matrix case study
2. Improving business portfolio management of Magic Matrix
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 Magic Matrix
Strengths Bridge the Gap Between Strategy and Tactics with the Magic Matrix | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Magic Matrix in Bridge the Gap Between Strategy and Tactics with the Magic Matrix Harvard Business Review case study are -
Ability to lead change in Sales & Marketing field
– Magic Matrix 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 Magic Matrix in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Magic Matrix 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 Magic Matrix is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Bridge the Gap Between Strategy and Tactics with the Magic Matrix Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Magic Matrix 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 Bridge the Gap Between Strategy and Tactics with the Magic Matrix HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Magic Matrix 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 Bridge the Gap Between Strategy and Tactics with the Magic Matrix - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Magic Matrix is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Magic Matrix has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Magic Matrix to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Magic Matrix 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 Benson P. Shapiro, Jonathan Byrnes 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
– Magic Matrix has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Magic Matrix 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.
Training and development
– Magic Matrix has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Bridge the Gap Between Strategy and Tactics with the Magic Matrix 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 Magic Matrix 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.
Ability to recruit top talent
– Magic Matrix is one of the leading recruiters in the industry. Managers in the Bridge the Gap Between Strategy and Tactics with the Magic Matrix are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Bridge the Gap Between Strategy and Tactics with the Magic Matrix 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.
Weaknesses Bridge the Gap Between Strategy and Tactics with the Magic Matrix | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bridge the Gap Between Strategy and Tactics with the Magic Matrix are -
Increasing silos among functional specialists
– The organizational structure of Magic Matrix is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Magic Matrix needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Magic Matrix to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Bridge the Gap Between Strategy and Tactics with the Magic Matrix, it seems that the employees of Magic Matrix 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.
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 Magic Matrix supply chain. Even after few cautionary changes mentioned in the HBR case study - Bridge the Gap Between Strategy and Tactics with the Magic Matrix, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Magic Matrix vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Magic Matrix 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Magic Matrix 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.
Products dominated business model
– Even though Magic Matrix 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 - Bridge the Gap Between Strategy and Tactics with the Magic Matrix should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Bridge the Gap Between Strategy and Tactics with the Magic Matrix, is just above the industry average. Magic Matrix needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Skills based hiring
– The stress on hiring functional specialists at Magic Matrix has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High cash cycle compare to competitors
Magic Matrix 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Bridge the Gap Between Strategy and Tactics with the Magic Matrix 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 Magic Matrix has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Bridge the Gap Between Strategy and Tactics with the Magic Matrix 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 Magic Matrix 's lucrative customers.
Opportunities Bridge the Gap Between Strategy and Tactics with the Magic Matrix | 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 Bridge the Gap Between Strategy and Tactics with the Magic Matrix are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Magic Matrix can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Magic Matrix has opened avenues for new revenue streams for the organization in the industry. This can help Magic Matrix to build a more holistic ecosystem as suggested in the Bridge the Gap Between Strategy and Tactics with the Magic Matrix case study. Magic Matrix can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Magic Matrix 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Magic Matrix is facing challenges because of the dominance of functional experts in the organization. Bridge the Gap Between Strategy and Tactics with the Magic Matrix 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.
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. Magic Matrix 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. Magic Matrix 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 Magic Matrix 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.
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. Magic Matrix can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Magic Matrix to increase its market reach. Magic Matrix 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.
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 Magic Matrix in the consumer business. Now Magic Matrix can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Magic Matrix can use these opportunities to build new business models that can help the communities that Magic Matrix operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Magic Matrix 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 Magic Matrix to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Magic Matrix 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Magic Matrix 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, Bridge the Gap Between Strategy and Tactics with the Magic Matrix, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Bridge the Gap Between Strategy and Tactics with the Magic Matrix External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bridge the Gap Between Strategy and Tactics with the Magic Matrix are -
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. Magic Matrix needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Magic Matrix 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.
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. Magic Matrix can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Magic Matrix 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.
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 Magic Matrix in the Sales & Marketing sector and impact the bottomline of the organization.
Regulatory challenges
– Magic Matrix 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.
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. Magic Matrix 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Magic Matrix with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Magic Matrix 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 Bridge the Gap Between Strategy and Tactics with the Magic Matrix .
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 Magic Matrix.
Environmental challenges
– Magic Matrix 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. Magic Matrix can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Stagnating economy with rate increase
– Magic Matrix 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.
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.
Weighted SWOT Analysis of Bridge the Gap Between Strategy and Tactics with the Magic Matrix 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 Bridge the Gap Between Strategy and Tactics with the Magic Matrix 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 Bridge the Gap Between Strategy and Tactics with the Magic Matrix 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 Bridge the Gap Between Strategy and Tactics with the Magic Matrix 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 Bridge the Gap Between Strategy and Tactics with the Magic Matrix 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 Magic Matrix needs to make to build a sustainable competitive advantage.