Mauboussin Japan: A French Gem in Asia SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mauboussin Japan: A French Gem in Asia
As marketers love to teach students, differentiation must be the focal point of marketing strategy. But what happens when a firm's competitive set is shared by similar customers, perceived differentiation is weak among rivals, and loyalty is a thing of the past? This was the dilemma the French luxury jeweler Mauboussin faced: how to leverage its iconic brand to access new customers, domestically and abroad, and through new channels, while preserving the image of luxury goods founded on the myth of rarity and exclusivity? The case was designed and used for the latter portion of an international MBA marketing course and would work well in most international business courses.
Authors :: Thierry Delecolle, Ronald G. Kamin, Beatrice Parguel, Gerry Yemen
Swot Analysis of "Mauboussin Japan: A French Gem in Asia" written by Thierry Delecolle, Ronald G. Kamin, Beatrice Parguel, Gerry Yemen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mauboussin Differentiation facing as an external strategic factors. Some of the topics covered in Mauboussin Japan: A French Gem in Asia case study are - Strategic Management Strategies, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Mauboussin Japan: A French Gem in Asia casestudy better are - – central banks are concerned over increasing inflation, geopolitical disruptions, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , there is backlash against globalization,
cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Mauboussin Japan: A French Gem in Asia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mauboussin Japan: A French Gem in Asia case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mauboussin Differentiation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mauboussin Differentiation 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 Mauboussin Japan: A French Gem in Asia can be done for the following purposes –
1. Strategic planning using facts provided in Mauboussin Japan: A French Gem in Asia case study
2. Improving business portfolio management of Mauboussin Differentiation
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 Mauboussin Differentiation
Strengths Mauboussin Japan: A French Gem in Asia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mauboussin Differentiation in Mauboussin Japan: A French Gem in Asia Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Mauboussin Differentiation in the sector have low bargaining power. Mauboussin Japan: A French Gem in Asia has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mauboussin Differentiation to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Mauboussin Differentiation 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 Thierry Delecolle, Ronald G. Kamin, Beatrice Parguel, Gerry Yemen 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.
Learning organization
- Mauboussin Differentiation 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 Mauboussin Differentiation is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Mauboussin Japan: A French Gem in Asia Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Mauboussin Differentiation 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 Mauboussin Japan: A French Gem in Asia HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Mauboussin Differentiation 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
– Mauboussin Differentiation 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 Mauboussin Differentiation in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Mauboussin Differentiation is present in almost all the verticals within the industry. This has provided firm in Mauboussin Japan: A French Gem in Asia 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.
Successful track record of launching new products
– Mauboussin Differentiation has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mauboussin Differentiation 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.
Operational resilience
– The operational resilience strategy in the Mauboussin Japan: A French Gem in Asia 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.
Organizational Resilience of Mauboussin Differentiation
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mauboussin Differentiation does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Sales & Marketing industry
– Mauboussin Japan: A French Gem in Asia firm has clearly differentiated products in the market place. This has enabled Mauboussin Differentiation to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Mauboussin Differentiation to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Mauboussin Differentiation 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.
Weaknesses Mauboussin Japan: A French Gem in Asia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mauboussin Japan: A French Gem in Asia are -
Skills based hiring
– The stress on hiring functional specialists at Mauboussin Differentiation 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.
Low market penetration in new markets
– Outside its home market of Mauboussin Differentiation, firm in the HBR case study Mauboussin Japan: A French Gem in Asia needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Mauboussin Differentiation 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. Mauboussin Differentiation 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Mauboussin Japan: A French Gem in Asia 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 Mauboussin Differentiation has relatively successful track record of launching new products.
Lack of clear differentiation of Mauboussin Differentiation products
– To increase the profitability and margins on the products, Mauboussin Differentiation needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Mauboussin Japan: A French Gem in Asia HBR case study mentions - Mauboussin Differentiation 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 cash cycle compare to competitors
Mauboussin Differentiation 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.
Products dominated business model
– Even though Mauboussin Differentiation 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 - Mauboussin Japan: A French Gem in Asia should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mauboussin Differentiation is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mauboussin Japan: A French Gem in Asia can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Mauboussin Differentiation is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Mauboussin Differentiation needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mauboussin Differentiation to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Mauboussin Japan: A French Gem in Asia, 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.
Opportunities Mauboussin Japan: A French Gem in Asia | 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 Mauboussin Japan: A French Gem in Asia are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mauboussin Differentiation 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, Mauboussin Japan: A French Gem in Asia, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mauboussin Differentiation 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.
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. Mauboussin Differentiation 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. Mauboussin Differentiation 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.
Better consumer reach
– The expansion of the 5G network will help Mauboussin Differentiation to increase its market reach. Mauboussin Differentiation will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Creating value in data economy
– The success of analytics program of Mauboussin Differentiation has opened avenues for new revenue streams for the organization in the industry. This can help Mauboussin Differentiation to build a more holistic ecosystem as suggested in the Mauboussin Japan: A French Gem in Asia case study. Mauboussin Differentiation can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Mauboussin Differentiation 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mauboussin Differentiation can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Mauboussin Differentiation can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Developing new processes and practices
– Mauboussin Differentiation 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.
Loyalty marketing
– Mauboussin Differentiation 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.
Buying journey improvements
– Mauboussin Differentiation can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mauboussin Japan: A French Gem in Asia 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.
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. Mauboussin Differentiation can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Mauboussin Differentiation 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.
Threats Mauboussin Japan: A French Gem in Asia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mauboussin Japan: A French Gem in Asia are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mauboussin Japan: A French Gem in Asia, Mauboussin Differentiation 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 .
Shortening product life cycle
– it is one of the major threat that Mauboussin Differentiation is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Mauboussin Differentiation
– 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 Mauboussin Differentiation.
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. Mauboussin Differentiation 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.
Stagnating economy with rate increase
– Mauboussin Differentiation 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. Mauboussin Differentiation needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Mauboussin Differentiation has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Mauboussin Differentiation 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.
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 Mauboussin Differentiation business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Mauboussin Differentiation 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.
Environmental challenges
– Mauboussin Differentiation 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. Mauboussin Differentiation can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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.
High dependence on third party suppliers
– Mauboussin Differentiation 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.
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 Mauboussin Japan: A French Gem in Asia 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 Mauboussin Japan: A French Gem in Asia 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 Mauboussin Japan: A French Gem in Asia 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 Mauboussin Japan: A French Gem in Asia 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 Mauboussin Japan: A French Gem in Asia 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 Mauboussin Differentiation needs to make to build a sustainable competitive advantage.
