Can You Measure the ROI of Your Social Media Marketing? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Can You Measure the ROI of Your Social Media Marketing?
This is an MIT Sloan Management Review article. We are going about the way we measure the return on investment in social media completely backwards. Effective social media measurement should start by turning the traditional ROI approach on its head. That is, instead of emphasizing their own marketing investments and calculating the returns in terms of customer response, managers should begin by considering consumer motivations to use social media and then measure the social media investments customers make as they engage with the marketers' brands. Handling the measurements this way makes much more sense. It takes into account not only short term goals such as increasing sales in the next month via a social media marketing campaign, or reducing costs next quarter due to more responsive online support forums, but also the long-term returns of significant corporate investment in social media. The authors show how you can implement this new kind of measurement and point to the benefits of doing so.
Swot Analysis of "Can You Measure the ROI of Your Social Media Marketing?" written by Donna L. Hoffman, Marek Fodor includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Media Social facing as an external strategic factors. Some of the topics covered in Can You Measure the ROI of Your Social Media Marketing? case study are - Strategic Management Strategies, Marketing, Product development, Social platforms, Supply chain and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Can You Measure the ROI of Your Social Media Marketing? casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs,
increasing commodity prices, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Can You Measure the ROI of Your Social Media Marketing?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Can You Measure the ROI of Your Social Media Marketing? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Media Social, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Media Social 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 Can You Measure the ROI of Your Social Media Marketing? can be done for the following purposes –
1. Strategic planning using facts provided in Can You Measure the ROI of Your Social Media Marketing? case study
2. Improving business portfolio management of Media Social
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 Media Social
Strengths Can You Measure the ROI of Your Social Media Marketing? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Media Social in Can You Measure the ROI of Your Social Media Marketing? Harvard Business Review case study are -
High brand equity
– Media Social has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Media Social to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Can You Measure the ROI of Your Social Media Marketing? 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.
Ability to recruit top talent
– Media Social is one of the leading recruiters in the industry. Managers in the Can You Measure the ROI of Your Social Media Marketing? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Sales & Marketing industry
– Can You Measure the ROI of Your Social Media Marketing? firm has clearly differentiated products in the market place. This has enabled Media Social to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Media Social to invest into research and development (R&D) and innovation.
Learning organization
- Media Social 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 Media Social is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Can You Measure the ROI of Your Social Media Marketing? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Media Social is one of the most innovative firm in sector. Manager in Can You Measure the ROI of Your Social Media Marketing? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Media Social digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Media Social 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.
Organizational Resilience of Media Social
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Media Social does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Media Social 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.
Diverse revenue streams
– Media Social is present in almost all the verticals within the industry. This has provided firm in Can You Measure the ROI of Your Social Media Marketing? 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.
Low bargaining power of suppliers
– Suppliers of Media Social in the sector have low bargaining power. Can You Measure the ROI of Your Social Media Marketing? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Media Social to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Media Social has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Media Social 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.
Weaknesses Can You Measure the ROI of Your Social Media Marketing? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Can You Measure the ROI of Your Social Media Marketing? are -
Skills based hiring
– The stress on hiring functional specialists at Media Social 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.
Lack of clear differentiation of Media Social products
– To increase the profitability and margins on the products, Media Social needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Media Social supply chain. Even after few cautionary changes mentioned in the HBR case study - Can You Measure the ROI of Your Social Media Marketing?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Media Social vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Media Social 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Media Social is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Can You Measure the ROI of Your Social Media Marketing? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Can You Measure the ROI of Your Social Media Marketing? 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 Media Social 's lucrative customers.
Slow to strategic competitive environment developments
– As Can You Measure the ROI of Your Social Media Marketing? HBR case study mentions - Media Social 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Can You Measure the ROI of Your Social Media Marketing?, it seems that the employees of Media Social 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.
Aligning sales with marketing
– It come across in the case study Can You Measure the ROI of Your Social Media Marketing? 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 Can You Measure the ROI of Your Social Media Marketing? can leverage the sales team experience to cultivate customer relationships as Media Social is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Media Social needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Low market penetration in new markets
– Outside its home market of Media Social, firm in the HBR case study Can You Measure the ROI of Your Social Media Marketing? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Can You Measure the ROI of Your Social Media Marketing? | 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 Can You Measure the ROI of Your Social Media Marketing? are -
Manufacturing automation
– Media Social 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.
Developing new processes and practices
– Media Social 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.
Learning at scale
– Online learning technologies has now opened space for Media Social to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Media Social 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. Media Social can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Media Social 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 Can You Measure the ROI of Your Social Media Marketing? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Media Social to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Media Social in the consumer business. Now Media Social can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Media Social has opened avenues for new revenue streams for the organization in the industry. This can help Media Social to build a more holistic ecosystem as suggested in the Can You Measure the ROI of Your Social Media Marketing? case study. Media Social can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Media Social 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Media Social is facing challenges because of the dominance of functional experts in the organization. Can You Measure the ROI of Your Social Media Marketing? 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.
Better consumer reach
– The expansion of the 5G network will help Media Social to increase its market reach. Media Social will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Media Social 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 Media Social to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Media Social 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.
Threats Can You Measure the ROI of Your Social Media Marketing? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Can You Measure the ROI of Your Social Media Marketing? are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Media Social 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.
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 Media Social in the Sales & Marketing sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Media Social has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Media Social 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 Media Social business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Media Social 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. Media Social can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Regulatory challenges
– Media Social needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Media Social needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Increasing wage structure of Media Social
– 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 Media Social.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Can You Measure the ROI of Your Social Media Marketing?, Media Social 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. Media Social can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Stagnating economy with rate increase
– Media Social 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Media Social with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Can You Measure the ROI of Your Social Media Marketing? 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 Can You Measure the ROI of Your Social Media Marketing? 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 Can You Measure the ROI of Your Social Media Marketing? 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 Can You Measure the ROI of Your Social Media Marketing? 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 Can You Measure the ROI of Your Social Media Marketing? 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 Media Social needs to make to build a sustainable competitive advantage.
