Motorcowboy: Getting a Foot in the Door (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Motorcowboy: Getting a Foot in the Door (A)
As part of the Google Online Marketing Challenge, a team of Darden students devises an AdWords campaign for Motorcowboy, an online source of custom footwear that caters to segments as varied as motorcycle police, cross dressers, movie buffs, equestrians, and plus-size individuals. When an initial keyword list yields low traffic, the team must adapt its approach. This three-part case illustrates the segmentation process and the relative merits of paid search over traditional mass media outlets. It also serves to underscore the importance of monitoring and adapting any advertising plan.
Authors :: Paul W. Farris, Robert Maddux, Timothy Harr, Martha Gray
Swot Analysis of "Motorcowboy: Getting a Foot in the Door (A)" written by Paul W. Farris, Robert Maddux, Timothy Harr, Martha Gray includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Motorcowboy Buffs facing as an external strategic factors. Some of the topics covered in Motorcowboy: Getting a Foot in the Door (A) case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Motorcowboy: Getting a Foot in the Door (A) casestudy better are - – there is increasing trade war between United States & China, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs,
technology disruption, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Motorcowboy: Getting a Foot in the Door (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Motorcowboy: Getting a Foot in the Door (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Motorcowboy Buffs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Motorcowboy Buffs 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 Motorcowboy: Getting a Foot in the Door (A) can be done for the following purposes –
1. Strategic planning using facts provided in Motorcowboy: Getting a Foot in the Door (A) case study
2. Improving business portfolio management of Motorcowboy Buffs
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 Motorcowboy Buffs
Strengths Motorcowboy: Getting a Foot in the Door (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Motorcowboy Buffs in Motorcowboy: Getting a Foot in the Door (A) Harvard Business Review case study are -
Successful track record of launching new products
– Motorcowboy Buffs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Motorcowboy Buffs 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.
Ability to recruit top talent
– Motorcowboy Buffs is one of the leading recruiters in the industry. Managers in the Motorcowboy: Getting a Foot in the Door (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Motorcowboy Buffs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Motorcowboy: Getting a Foot in the Door (A) 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.
Effective Research and Development (R&D)
– Motorcowboy Buffs has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Motorcowboy: Getting a Foot in the Door (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Motorcowboy Buffs 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 Paul W. Farris, Robert Maddux, Timothy Harr, Martha Gray 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.
Organizational Resilience of Motorcowboy Buffs
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Motorcowboy Buffs does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Motorcowboy Buffs 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 Motorcowboy Buffs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Motorcowboy: Getting a Foot in the Door (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Motorcowboy Buffs 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 Motorcowboy: Getting a Foot in the Door (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Motorcowboy Buffs has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Motorcowboy Buffs to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Motorcowboy Buffs is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Sales & Marketing industry
– Motorcowboy: Getting a Foot in the Door (A) firm has clearly differentiated products in the market place. This has enabled Motorcowboy Buffs to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Motorcowboy Buffs to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Motorcowboy Buffs is present in almost all the verticals within the industry. This has provided firm in Motorcowboy: Getting a Foot in the Door (A) 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.
Weaknesses Motorcowboy: Getting a Foot in the Door (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Motorcowboy: Getting a Foot in the Door (A) are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Motorcowboy Buffs is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Motorcowboy: Getting a Foot in the Door (A) 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 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 Motorcowboy Buffs supply chain. Even after few cautionary changes mentioned in the HBR case study - Motorcowboy: Getting a Foot in the Door (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Motorcowboy Buffs vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Motorcowboy: Getting a Foot in the Door (A), it seems that the employees of Motorcowboy Buffs 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.
Increasing silos among functional specialists
– The organizational structure of Motorcowboy Buffs is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Motorcowboy Buffs needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Motorcowboy Buffs to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Motorcowboy Buffs 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Motorcowboy: Getting a Foot in the Door (A) 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 Motorcowboy Buffs 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Motorcowboy Buffs 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. Motorcowboy Buffs 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Motorcowboy: Getting a Foot in the Door (A), in the dynamic environment Motorcowboy Buffs has struggled to respond to the nimble upstart competition. Motorcowboy Buffs has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Motorcowboy Buffs 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 - Motorcowboy: Getting a Foot in the Door (A) should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Motorcowboy: Getting a Foot in the Door (A), is just above the industry average. Motorcowboy Buffs 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 bargaining power of channel partners
– Because of the regulatory requirements, Paul W. Farris, Robert Maddux, Timothy Harr, Martha Gray suggests that, Motorcowboy Buffs is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities Motorcowboy: Getting a Foot in the Door (A) | 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 Motorcowboy: Getting a Foot in the Door (A) are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Motorcowboy Buffs 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, Motorcowboy: Getting a Foot in the Door (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Motorcowboy Buffs in the consumer business. Now Motorcowboy Buffs can target international markets with far fewer capital restrictions requirements than the existing system.
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 Motorcowboy Buffs 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Motorcowboy Buffs can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Motorcowboy Buffs can use these opportunities to build new business models that can help the communities that Motorcowboy Buffs operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Buying journey improvements
– Motorcowboy Buffs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Motorcowboy: Getting a Foot in the Door (A) 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.
Developing new processes and practices
– Motorcowboy Buffs 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Motorcowboy Buffs is facing challenges because of the dominance of functional experts in the organization. Motorcowboy: Getting a Foot in the Door (A) 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.
Learning at scale
– Online learning technologies has now opened space for Motorcowboy Buffs 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. Motorcowboy Buffs 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. Motorcowboy Buffs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Motorcowboy Buffs 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 Motorcowboy Buffs to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Motorcowboy Buffs can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats Motorcowboy: Getting a Foot in the Door (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Motorcowboy: Getting a Foot in the Door (A) are -
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. Motorcowboy Buffs can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Motorcowboy Buffs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Motorcowboy Buffs demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
High dependence on third party suppliers
– Motorcowboy Buffs 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.
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 Motorcowboy Buffs in the Sales & Marketing sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Motorcowboy Buffs has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Motorcowboy Buffs 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.
Increasing wage structure of Motorcowboy Buffs
– 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 Motorcowboy Buffs.
Environmental challenges
– Motorcowboy Buffs 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. Motorcowboy Buffs can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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 Motorcowboy Buffs business can come under increasing regulations regarding data privacy, data security, etc.
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.
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. Motorcowboy Buffs needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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 Motorcowboy Buffs.
Shortening product life cycle
– it is one of the major threat that Motorcowboy Buffs is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Motorcowboy: Getting a Foot in the Door (A) 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 Motorcowboy: Getting a Foot in the Door (A) 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 Motorcowboy: Getting a Foot in the Door (A) 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 Motorcowboy: Getting a Foot in the Door (A) 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 Motorcowboy: Getting a Foot in the Door (A) 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 Motorcowboy Buffs needs to make to build a sustainable competitive advantage.
