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 - – talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs,
competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
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.
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.
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.
Strong track record of project management
– Hootsuite Monetizing is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
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.
Diverse revenue streams
– Hootsuite Monetizing is present in almost all the verticals within the industry. This has provided firm in HootSuite: Monetizing the Social Media Dashboard case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Operational resilience
– The operational resilience strategy in the HootSuite: Monetizing the Social Media Dashboard 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.
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.
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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Hootsuite Monetizing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hootsuite Monetizing 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.
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 -
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.
Increasing silos among functional specialists
– The organizational structure of Hootsuite Monetizing is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Hootsuite Monetizing needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hootsuite Monetizing to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Hootsuite Monetizing products
– To increase the profitability and margins on the products, Hootsuite Monetizing needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Hootsuite Monetizing 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 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.
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.
No frontier risks strategy
– After analyzing the HBR case study HootSuite: Monetizing the Social Media Dashboard, 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study HootSuite: Monetizing the Social Media Dashboard, is just above the industry average. Hootsuite Monetizing 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the HootSuite: Monetizing the Social Media Dashboard 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 Hootsuite Monetizing has relatively successful track record of launching new products.
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.
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.
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 -
Developing new processes and practices
– Hootsuite Monetizing 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.
Manufacturing automation
– Hootsuite Monetizing 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.
Better consumer reach
– The expansion of the 5G network will help Hootsuite Monetizing to increase its market reach. Hootsuite Monetizing 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hootsuite Monetizing can use these opportunities to build new business models that can help the communities that Hootsuite Monetizing 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 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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hootsuite Monetizing 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.
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.
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 Hootsuite Monetizing 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.
Buying journey improvements
– Hootsuite Monetizing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HootSuite: Monetizing the Social Media Dashboard 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.
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.
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 -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hootsuite Monetizing 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 HootSuite: Monetizing the Social Media Dashboard .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
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.
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.
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 Hootsuite Monetizing.
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. Hootsuite Monetizing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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 Hootsuite Monetizing in the Sales & Marketing sector and impact the bottomline of the organization.
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 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.
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.
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.