Case Study Description of Viewing Brands in Multiple Dimensions
This is an MIT Sloan Management Review article. Contrary to the beliefs of many managers, their companies' products and corporate brands cannot truly be managed, much less owned. That much has become clear in recent years as many well known brands have seemed to take on lives of their own, changing in the minds of many even though management may think of them as immutable. In this article, the authors introduce the concept of a "brand manifold" in order to bring out two overlooked factors: first, that brands have multiple dimensions depending on who is valuing them, and second, that those dimensions change in space and time. Drawing on automotive industry examples such as Maybach, Morgan, and BMW's Mini, the authors demonstrate the importance of managing a brand's evolution so that the brand does not lose its roots in the past. They go on to highlight the importance of understanding that brands have a life and meaning independent of what their initiators intended--as embodied by the thriving user community around Apple Computer's long-obsolete Newton handheld and evident in the influence of Harley-Davidson owners over many of the company's strategic decisions.
Authors :: Pierre R. Berthon, Morris B. Holbrook, James M. Hulbert, Leyland Pitt
Swot Analysis of "Viewing Brands in Multiple Dimensions" written by Pierre R. Berthon, Morris B. Holbrook, James M. Hulbert, Leyland Pitt includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Brands Dimensions facing as an external strategic factors. Some of the topics covered in Viewing Brands in Multiple Dimensions case study are - Strategic Management Strategies, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Viewing Brands in Multiple Dimensions casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation,
cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Viewing Brands in Multiple Dimensions
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Viewing Brands in Multiple Dimensions case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Brands Dimensions, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Brands Dimensions 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 Viewing Brands in Multiple Dimensions can be done for the following purposes –
1. Strategic planning using facts provided in Viewing Brands in Multiple Dimensions case study
2. Improving business portfolio management of Brands Dimensions
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 Brands Dimensions
Strengths Viewing Brands in Multiple Dimensions | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Brands Dimensions in Viewing Brands in Multiple Dimensions Harvard Business Review case study are -
Diverse revenue streams
– Brands Dimensions is present in almost all the verticals within the industry. This has provided firm in Viewing Brands in Multiple Dimensions 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 Viewing Brands in Multiple Dimensions 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 Brands Dimensions 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.
Organizational Resilience of Brands Dimensions
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Brands Dimensions does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Brands Dimensions in the sector have low bargaining power. Viewing Brands in Multiple Dimensions has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Brands Dimensions to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Sales & Marketing industry
– Viewing Brands in Multiple Dimensions firm has clearly differentiated products in the market place. This has enabled Brands Dimensions to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Brands Dimensions to invest into research and development (R&D) and innovation.
High brand equity
– Brands Dimensions has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Brands Dimensions to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Brands Dimensions has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Viewing Brands in Multiple Dimensions 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.
Innovation driven organization
– Brands Dimensions is one of the most innovative firm in sector. Manager in Viewing Brands in Multiple Dimensions Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Brands Dimensions 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.
Successful track record of launching new products
– Brands Dimensions has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Brands Dimensions 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.
Analytics focus
– Brands Dimensions 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 Pierre R. Berthon, Morris B. Holbrook, James M. Hulbert, Leyland Pitt 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.
Weaknesses Viewing Brands in Multiple Dimensions | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Viewing Brands in Multiple Dimensions are -
Increasing silos among functional specialists
– The organizational structure of Brands Dimensions is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Brands Dimensions needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Brands Dimensions to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Brands Dimensions 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 - Viewing Brands in Multiple Dimensions should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Viewing Brands in Multiple Dimensions 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 Brands Dimensions 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Brands Dimensions 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. Brands Dimensions 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
Brands Dimensions 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.
Interest costs
– Compare to the competition, Brands Dimensions 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.
Low market penetration in new markets
– Outside its home market of Brands Dimensions, firm in the HBR case study Viewing Brands in Multiple Dimensions needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Viewing Brands in Multiple Dimensions 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 Brands Dimensions has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Viewing Brands in Multiple Dimensions, is just above the industry average. Brands Dimensions 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Viewing Brands in Multiple Dimensions, in the dynamic environment Brands Dimensions has struggled to respond to the nimble upstart competition. Brands Dimensions has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Viewing Brands in Multiple Dimensions, it seems that the employees of Brands Dimensions 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 Viewing Brands in Multiple Dimensions | 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 Viewing Brands in Multiple Dimensions are -
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. Brands Dimensions 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. Brands Dimensions 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 Brands Dimensions to increase its market reach. Brands Dimensions 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
– Brands Dimensions 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 Viewing Brands in Multiple Dimensions - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Brands Dimensions to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Brands Dimensions can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Viewing Brands in Multiple Dimensions 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.
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 Brands Dimensions 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.
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 Brands Dimensions in the consumer business. Now Brands Dimensions can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Brands Dimensions 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 Brands Dimensions to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Brands Dimensions 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.
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. Brands Dimensions can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Brands Dimensions can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Brands Dimensions 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Brands Dimensions is facing challenges because of the dominance of functional experts in the organization. Viewing Brands in Multiple Dimensions 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Brands Dimensions can use these opportunities to build new business models that can help the communities that Brands Dimensions operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Threats Viewing Brands in Multiple Dimensions External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Viewing Brands in Multiple Dimensions are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Brands Dimensions with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Brands Dimensions 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 Viewing Brands in Multiple Dimensions .
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 Brands Dimensions.
Technology acceleration in Forth Industrial Revolution
– Brands Dimensions has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Brands Dimensions 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 Brands Dimensions business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Brands Dimensions 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.
Increasing wage structure of Brands Dimensions
– 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 Brands Dimensions.
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 Brands Dimensions in the Sales & Marketing sector and impact the bottomline of the organization.
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.
Environmental challenges
– Brands Dimensions 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. Brands Dimensions can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Viewing Brands in Multiple Dimensions, Brands Dimensions 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 .
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. Brands Dimensions can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Viewing Brands in Multiple Dimensions 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 Viewing Brands in Multiple Dimensions 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 Viewing Brands in Multiple Dimensions 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 Viewing Brands in Multiple Dimensions 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 Viewing Brands in Multiple Dimensions 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 Brands Dimensions needs to make to build a sustainable competitive advantage.