Grafica, Inc.: Winning the New Jersey Lottery (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Grafica, Inc.: Winning the New Jersey Lottery (B)
Supplements the (A) case. To maximize their effectiveness, color cases should be printed in color.An abstract is not available for this product. Includes color exhibits.
Swot Analysis of "Grafica, Inc.: Winning the New Jersey Lottery (B)" written by Gail McGovern includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Grafica Lottery facing as an external strategic factors. Some of the topics covered in Grafica, Inc.: Winning the New Jersey Lottery (B) case study are - Strategic Management Strategies, Negotiations and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Grafica, Inc.: Winning the New Jersey Lottery (B) casestudy better are - – wage bills are increasing, technology disruption, increasing household debt because of falling income levels, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies,
central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Grafica, Inc.: Winning the New Jersey Lottery (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Grafica, Inc.: Winning the New Jersey Lottery (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Grafica Lottery, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Grafica Lottery 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 Grafica, Inc.: Winning the New Jersey Lottery (B) can be done for the following purposes –
1. Strategic planning using facts provided in Grafica, Inc.: Winning the New Jersey Lottery (B) case study
2. Improving business portfolio management of Grafica Lottery
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 Grafica Lottery
Strengths Grafica, Inc.: Winning the New Jersey Lottery (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Grafica Lottery in Grafica, Inc.: Winning the New Jersey Lottery (B) Harvard Business Review case study are -
High brand equity
– Grafica Lottery has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Grafica Lottery to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Grafica Lottery in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Grafica Lottery has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Grafica Lottery 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Grafica, Inc.: Winning the New Jersey Lottery (B) firm has clearly differentiated products in the market place. This has enabled Grafica Lottery to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Grafica Lottery to invest into research and development (R&D) and innovation.
Ability to lead change in Sales & Marketing field
– Grafica Lottery 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 Grafica Lottery in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Grafica Lottery is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Grafica Lottery
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Grafica Lottery does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Grafica Lottery 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 Grafica Lottery is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Grafica, Inc.: Winning the New Jersey Lottery (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Grafica Lottery is one of the most innovative firm in sector. Manager in Grafica, Inc.: Winning the New Jersey Lottery (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Grafica Lottery is one of the leading recruiters in the industry. Managers in the Grafica, Inc.: Winning the New Jersey Lottery (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Grafica Lottery 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.
Cross disciplinary teams
– Horizontal connected teams at the Grafica Lottery 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 Grafica, Inc.: Winning the New Jersey Lottery (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Grafica, Inc.: Winning the New Jersey Lottery (B) are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Grafica, Inc.: Winning the New Jersey Lottery (B), it seems that the employees of Grafica Lottery 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Grafica, Inc.: Winning the New Jersey Lottery (B) 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 Grafica Lottery has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Grafica Lottery 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Grafica, Inc.: Winning the New Jersey Lottery (B), is just above the industry average. Grafica Lottery 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 operating costs
– Compare to the competitors, firm in the HBR case study Grafica, Inc.: Winning the New Jersey Lottery (B) 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 Grafica Lottery 's lucrative customers.
Slow to strategic competitive environment developments
– As Grafica, Inc.: Winning the New Jersey Lottery (B) HBR case study mentions - Grafica Lottery 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Grafica Lottery 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.
Lack of clear differentiation of Grafica Lottery products
– To increase the profitability and margins on the products, Grafica Lottery needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Grafica, Inc.: Winning the New Jersey Lottery (B) 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 Grafica, Inc.: Winning the New Jersey Lottery (B) can leverage the sales team experience to cultivate customer relationships as Grafica Lottery is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Grafica Lottery is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Grafica Lottery needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Grafica Lottery to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Grafica, Inc.: Winning the New Jersey Lottery (B), in the dynamic environment Grafica Lottery has struggled to respond to the nimble upstart competition. Grafica Lottery has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Grafica, Inc.: Winning the New Jersey Lottery (B) | 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 Grafica, Inc.: Winning the New Jersey Lottery (B) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Grafica Lottery is facing challenges because of the dominance of functional experts in the organization. Grafica, Inc.: Winning the New Jersey Lottery (B) 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.
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. Grafica Lottery can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Grafica Lottery 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.
Better consumer reach
– The expansion of the 5G network will help Grafica Lottery to increase its market reach. Grafica Lottery 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.
Building a culture of innovation
– managers at Grafica Lottery 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Grafica Lottery 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 Grafica Lottery to hire the very best people irrespective of their geographical location.
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. Grafica Lottery 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
– Grafica Lottery 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Grafica Lottery can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Grafica Lottery 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Grafica Lottery can use these opportunities to build new business models that can help the communities that Grafica Lottery operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Grafica Lottery 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, Grafica, Inc.: Winning the New Jersey Lottery (B), 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 Grafica Lottery in the consumer business. Now Grafica Lottery can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Grafica, Inc.: Winning the New Jersey Lottery (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Grafica, Inc.: Winning the New Jersey Lottery (B) are -
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 Grafica Lottery business can come under increasing regulations regarding data privacy, data security, etc.
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. Grafica Lottery 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Grafica Lottery with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
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. Grafica Lottery can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Grafica Lottery 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 Grafica Lottery
– 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 Grafica Lottery.
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 Grafica Lottery in the Sales & Marketing sector and impact the bottomline of the organization.
Consumer confidence and its impact on Grafica Lottery 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.
Regulatory challenges
– Grafica Lottery 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. Grafica Lottery 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
– Grafica Lottery has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Grafica Lottery 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.
Weighted SWOT Analysis of Grafica, Inc.: Winning the New Jersey Lottery (B) 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 Grafica, Inc.: Winning the New Jersey Lottery (B) 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 Grafica, Inc.: Winning the New Jersey Lottery (B) 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 Grafica, Inc.: Winning the New Jersey Lottery (B) 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 Grafica, Inc.: Winning the New Jersey Lottery (B) 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 Grafica Lottery needs to make to build a sustainable competitive advantage.