HootSuite: Monetizing the Social Media Dashboard SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of HootSuite: Monetizing the Social Media Dashboard
HootSuite is one of the fastest growing SaaS (Software as a Service) social media dashboards on the market. The company's vice-president of business development needs to determine the best strategy for segmenting and monetizing HootSuite users. He needs to introduce a tiered pricing plan that generates revenues without alienating users.
Swot Analysis of "HootSuite: Monetizing the Social Media Dashboard" written by Raymond Pirouz, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hootsuite Monetizing facing as an external strategic factors. Some of the topics covered in HootSuite: Monetizing the Social Media Dashboard case study are - Strategic Management Strategies, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the HootSuite: Monetizing the Social Media Dashboard casestudy better are - – increasing commodity prices, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion,
technology disruption, increasing energy prices, etc
Introduction to SWOT Analysis of HootSuite: Monetizing the Social Media Dashboard
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HootSuite: Monetizing the Social Media Dashboard case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hootsuite Monetizing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hootsuite Monetizing 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 HootSuite: Monetizing the Social Media Dashboard can be done for the following purposes –
1. Strategic planning using facts provided in HootSuite: Monetizing the Social Media Dashboard case study
2. Improving business portfolio management of Hootsuite Monetizing
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 Hootsuite Monetizing
Strengths HootSuite: Monetizing the Social Media Dashboard | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hootsuite Monetizing in HootSuite: Monetizing the Social Media Dashboard Harvard Business Review case study are -
High brand equity
– Hootsuite Monetizing has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hootsuite Monetizing to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Hootsuite Monetizing 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.
Innovation driven organization
– Hootsuite Monetizing is one of the most innovative firm in sector. Manager in HootSuite: Monetizing the Social Media Dashboard 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 Hootsuite Monetizing in the sector have low bargaining power. HootSuite: Monetizing the Social Media Dashboard has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hootsuite Monetizing to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Hootsuite Monetizing 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.
Training and development
– Hootsuite Monetizing has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in HootSuite: Monetizing the Social Media Dashboard 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.
Ability to lead change in Sales & Marketing field
– Hootsuite Monetizing 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 Hootsuite Monetizing in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Hootsuite Monetizing 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 Raymond Pirouz, Ken Mark 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.
Superior customer experience
– The customer experience strategy of Hootsuite Monetizing in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Sales & Marketing industry
– HootSuite: Monetizing the Social Media Dashboard firm has clearly differentiated products in the market place. This has enabled Hootsuite Monetizing to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Hootsuite Monetizing to invest into research and development (R&D) and innovation.
Learning organization
- Hootsuite Monetizing 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 Hootsuite Monetizing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in HootSuite: Monetizing the Social Media Dashboard Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Hootsuite Monetizing is one of the leading recruiters in the industry. Managers in the HootSuite: Monetizing the Social Media Dashboard are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses HootSuite: Monetizing the Social Media Dashboard | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HootSuite: Monetizing the Social Media Dashboard are -
Aligning sales with marketing
– It come across in the case study HootSuite: Monetizing the Social Media Dashboard 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 HootSuite: Monetizing the Social Media Dashboard can leverage the sales team experience to cultivate customer relationships as Hootsuite Monetizing is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study HootSuite: Monetizing the Social Media Dashboard, in the dynamic environment Hootsuite Monetizing has struggled to respond to the nimble upstart competition. Hootsuite Monetizing has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Hootsuite Monetizing 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.
Slow decision making process
– As mentioned earlier in the report, Hootsuite Monetizing 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. Hootsuite Monetizing 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.
High cash cycle compare to competitors
Hootsuite Monetizing 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 Hootsuite Monetizing, firm in the HBR case study HootSuite: Monetizing the Social Media Dashboard needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study HootSuite: Monetizing the Social Media Dashboard, it seems that the employees of Hootsuite Monetizing 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.
Products dominated business model
– Even though Hootsuite Monetizing 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 - HootSuite: Monetizing the Social Media Dashboard should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As HootSuite: Monetizing the Social Media Dashboard HBR case study mentions - Hootsuite Monetizing 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 operating costs
– Compare to the competitors, firm in the HBR case study HootSuite: Monetizing the Social Media Dashboard 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 Hootsuite Monetizing 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Raymond Pirouz, Ken Mark suggests that, Hootsuite Monetizing 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 HootSuite: Monetizing the Social Media Dashboard | 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 HootSuite: Monetizing the Social Media Dashboard are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hootsuite Monetizing is facing challenges because of the dominance of functional experts in the organization. HootSuite: Monetizing the Social Media Dashboard 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.
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. Hootsuite Monetizing can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Hootsuite Monetizing 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. Hootsuite Monetizing 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.
Loyalty marketing
– Hootsuite Monetizing 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.
Building a culture of innovation
– managers at Hootsuite Monetizing 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.
Creating value in data economy
– The success of analytics program of Hootsuite Monetizing has opened avenues for new revenue streams for the organization in the industry. This can help Hootsuite Monetizing to build a more holistic ecosystem as suggested in the HootSuite: Monetizing the Social Media Dashboard case study. Hootsuite Monetizing 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, Hootsuite Monetizing 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.
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. Hootsuite Monetizing can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Hootsuite Monetizing in the consumer business. Now Hootsuite Monetizing can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hootsuite Monetizing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Hootsuite Monetizing 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.
Using analytics as competitive advantage
– Hootsuite Monetizing 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 HootSuite: Monetizing the Social Media Dashboard - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hootsuite Monetizing to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hootsuite Monetizing 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, HootSuite: Monetizing the Social Media Dashboard, 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 HootSuite: Monetizing the Social Media Dashboard External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HootSuite: Monetizing the Social Media Dashboard are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hootsuite Monetizing 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.
Regulatory challenges
– Hootsuite Monetizing 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.
Technology acceleration in Forth Industrial Revolution
– Hootsuite Monetizing has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Hootsuite Monetizing 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.
Consumer confidence and its impact on Hootsuite Monetizing 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.
Stagnating economy with rate increase
– Hootsuite Monetizing 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.
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. Hootsuite Monetizing 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 Hootsuite Monetizing 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
– Hootsuite Monetizing 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.
Environmental challenges
– Hootsuite Monetizing 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. Hootsuite Monetizing can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Increasing wage structure of Hootsuite Monetizing
– 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 Hootsuite Monetizing.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study HootSuite: Monetizing the Social Media Dashboard, Hootsuite Monetizing 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 .
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. Hootsuite Monetizing 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.
Weighted SWOT Analysis of HootSuite: Monetizing the Social Media Dashboard 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 HootSuite: Monetizing the Social Media Dashboard 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 HootSuite: Monetizing the Social Media Dashboard 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 HootSuite: Monetizing the Social Media Dashboard 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 HootSuite: Monetizing the Social Media Dashboard 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 Hootsuite Monetizing needs to make to build a sustainable competitive advantage.
