Lance Armstrong and Livestrong Foundation: Rising Again After the Fall SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Lance Armstrong and Livestrong Foundation: Rising Again After the Fall
Lance Armstrong, a world-famous cyclist, was charged with using performance-enhancing drugs (i.e. "doping"). Armstrong had vehemently denied similar charges a few years earlier; however, this time there was substantial proof available and Armstrong accepted the charges. Subsequent to this news, most of the brands that had endorsed Armstrong terminated their contracts with him. As a cancer survivor, Armstrong had started Livestrong Foundation, an organization to support cancer patients, caregivers and survivors. This foundation depended heavily on sponsorships received by Armstrong. To protect his foundation from the negative impact of the doping controversy, Armstrong immediately resigned from both his post as chairman of Livestrong and from its board of directors. Despite his efforts, Livestrong was losing its sponsorships and a solution was needed to reduce the negative publicity, stop the loss of funding and identify new sources of funding.
Swot Analysis of "Lance Armstrong and Livestrong Foundation: Rising Again After the Fall" written by Dheeraj Sharma, Varsha Verma includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Armstrong Livestrong facing as an external strategic factors. Some of the topics covered in Lance Armstrong and Livestrong Foundation: Rising Again After the Fall case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Lance Armstrong and Livestrong Foundation: Rising Again After the Fall casestudy better are - – increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, technology disruption, cloud computing is disrupting traditional business models,
digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Lance Armstrong and Livestrong Foundation: Rising Again After the Fall
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Lance Armstrong and Livestrong Foundation: Rising Again After the Fall case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Armstrong Livestrong, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Armstrong Livestrong 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 Lance Armstrong and Livestrong Foundation: Rising Again After the Fall can be done for the following purposes –
1. Strategic planning using facts provided in Lance Armstrong and Livestrong Foundation: Rising Again After the Fall case study
2. Improving business portfolio management of Armstrong Livestrong
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 Armstrong Livestrong
Strengths Lance Armstrong and Livestrong Foundation: Rising Again After the Fall | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Armstrong Livestrong in Lance Armstrong and Livestrong Foundation: Rising Again After the Fall Harvard Business Review case study are -
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Armstrong Livestrong digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Armstrong Livestrong 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.
Superior customer experience
– The customer experience strategy of Armstrong Livestrong in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Sales & Marketing field
– Armstrong Livestrong 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 Armstrong Livestrong in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Lance Armstrong and Livestrong Foundation: Rising Again After the Fall 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.
Cross disciplinary teams
– Horizontal connected teams at the Armstrong Livestrong 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
– Armstrong Livestrong is one of the leading recruiters in the industry. Managers in the Lance Armstrong and Livestrong Foundation: Rising Again After the Fall are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Armstrong Livestrong 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
– Armstrong Livestrong has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Armstrong Livestrong to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Armstrong Livestrong 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 Lance Armstrong and Livestrong Foundation: Rising Again After the Fall - 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
– Armstrong Livestrong is one of the most innovative firm in sector. Manager in Lance Armstrong and Livestrong Foundation: Rising Again After the Fall Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Armstrong Livestrong 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 Armstrong Livestrong is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Lance Armstrong and Livestrong Foundation: Rising Again After the Fall Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Sales & Marketing industry
– Lance Armstrong and Livestrong Foundation: Rising Again After the Fall firm has clearly differentiated products in the market place. This has enabled Armstrong Livestrong to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Armstrong Livestrong to invest into research and development (R&D) and innovation.
Weaknesses Lance Armstrong and Livestrong Foundation: Rising Again After the Fall | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lance Armstrong and Livestrong Foundation: Rising Again After the Fall are -
High cash cycle compare to competitors
Armstrong Livestrong 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.
Low market penetration in new markets
– Outside its home market of Armstrong Livestrong, firm in the HBR case study Lance Armstrong and Livestrong Foundation: Rising Again After the Fall needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Lance Armstrong and Livestrong Foundation: Rising Again After the Fall 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 Armstrong Livestrong 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Dheeraj Sharma, Varsha Verma suggests that, Armstrong Livestrong 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.
No frontier risks strategy
– After analyzing the HBR case study Lance Armstrong and Livestrong Foundation: Rising Again After the Fall, 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.
Slow decision making process
– As mentioned earlier in the report, Armstrong Livestrong 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. Armstrong Livestrong 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.
Products dominated business model
– Even though Armstrong Livestrong 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 - Lance Armstrong and Livestrong Foundation: Rising Again After the Fall should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Armstrong Livestrong 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.
Slow to strategic competitive environment developments
– As Lance Armstrong and Livestrong Foundation: Rising Again After the Fall HBR case study mentions - Armstrong Livestrong 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.
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 Armstrong Livestrong supply chain. Even after few cautionary changes mentioned in the HBR case study - Lance Armstrong and Livestrong Foundation: Rising Again After the Fall, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Armstrong Livestrong vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Lance Armstrong and Livestrong Foundation: Rising Again After the Fall, it seems that the employees of Armstrong Livestrong 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.
Opportunities Lance Armstrong and Livestrong Foundation: Rising Again After the Fall | 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 Lance Armstrong and Livestrong Foundation: Rising Again After the Fall are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Armstrong Livestrong is facing challenges because of the dominance of functional experts in the organization. Lance Armstrong and Livestrong Foundation: Rising Again After the Fall 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.
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 Armstrong Livestrong 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.
Better consumer reach
– The expansion of the 5G network will help Armstrong Livestrong to increase its market reach. Armstrong Livestrong 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Armstrong Livestrong 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 Armstrong Livestrong to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Armstrong Livestrong can use these opportunities to build new business models that can help the communities that Armstrong Livestrong operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Armstrong Livestrong 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, Lance Armstrong and Livestrong Foundation: Rising Again After the Fall, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Armstrong Livestrong 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. Armstrong Livestrong can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Armstrong Livestrong can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Lance Armstrong and Livestrong Foundation: Rising Again After the Fall 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.
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. Armstrong Livestrong 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. Armstrong Livestrong 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Armstrong Livestrong in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Armstrong Livestrong has opened avenues for new revenue streams for the organization in the industry. This can help Armstrong Livestrong to build a more holistic ecosystem as suggested in the Lance Armstrong and Livestrong Foundation: Rising Again After the Fall case study. Armstrong Livestrong can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Armstrong Livestrong 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.
Threats Lance Armstrong and Livestrong Foundation: Rising Again After the Fall External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Lance Armstrong and Livestrong Foundation: Rising Again After the Fall are -
Consumer confidence and its impact on Armstrong Livestrong 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.
Regulatory challenges
– Armstrong Livestrong 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 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. Armstrong Livestrong needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Armstrong Livestrong is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Armstrong Livestrong.
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 Armstrong Livestrong 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 Armstrong Livestrong with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Armstrong Livestrong 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.
Increasing wage structure of Armstrong Livestrong
– 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 Armstrong Livestrong.
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 Armstrong Livestrong business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Armstrong Livestrong 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.
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. Armstrong Livestrong 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.
Weighted SWOT Analysis of Lance Armstrong and Livestrong Foundation: Rising Again After the Fall 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 Lance Armstrong and Livestrong Foundation: Rising Again After the Fall 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 Lance Armstrong and Livestrong Foundation: Rising Again After the Fall 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 Lance Armstrong and Livestrong Foundation: Rising Again After the Fall 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 Lance Armstrong and Livestrong Foundation: Rising Again After the Fall 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 Armstrong Livestrong needs to make to build a sustainable competitive advantage.