Swot Analysis of "Experience! The Finger Lakes: The Groupon Partnership Decision (B)" written by Lynda M. Applegate, Chekitan S. Dev, Gabriele Piccoli, Arnold B. Peinado includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Finger Lakes facing as an external strategic factors. Some of the topics covered in Experience! The Finger Lakes: The Groupon Partnership Decision (B) case study are - Strategic Management Strategies, Strategy and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Experience! The Finger Lakes: The Groupon Partnership Decision (B) casestudy better are - – increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, geopolitical disruptions, there is increasing trade war between United States & China,
increasing commodity prices, increasing energy prices, etc
Introduction to SWOT Analysis of Experience! The Finger Lakes: The Groupon Partnership Decision (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Experience! The Finger Lakes: The Groupon Partnership Decision (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Finger Lakes, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Finger Lakes 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 Experience! The Finger Lakes: The Groupon Partnership Decision (B) can be done for the following purposes –
1. Strategic planning using facts provided in Experience! The Finger Lakes: The Groupon Partnership Decision (B) case study
2. Improving business portfolio management of Finger Lakes
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 Finger Lakes
Strengths Experience! The Finger Lakes: The Groupon Partnership Decision (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Finger Lakes in Experience! The Finger Lakes: The Groupon Partnership Decision (B) Harvard Business Review case study are -
Ability to recruit top talent
– Finger Lakes is one of the leading recruiters in the industry. Managers in the Experience! The Finger Lakes: The Groupon Partnership Decision (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.
Sustainable margins compare to other players in Sales & Marketing industry
– Experience! The Finger Lakes: The Groupon Partnership Decision (B) firm has clearly differentiated products in the market place. This has enabled Finger Lakes to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Finger Lakes to invest into research and development (R&D) and innovation.
Ability to lead change in Sales & Marketing field
– Finger Lakes 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 Finger Lakes in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Finger Lakes has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Experience! The Finger Lakes: The Groupon Partnership Decision (B) 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)
– Finger Lakes 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 Experience! The Finger Lakes: The Groupon Partnership Decision (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Finger Lakes has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Finger Lakes 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.
Innovation driven organization
– Finger Lakes is one of the most innovative firm in sector. Manager in Experience! The Finger Lakes: The Groupon Partnership Decision (B) 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 Finger Lakes 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.
Superior customer experience
– The customer experience strategy of Finger Lakes in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Finger Lakes 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 Lynda M. Applegate, Chekitan S. Dev, Gabriele Piccoli, Arnold B. Peinado 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.
Operational resilience
– The operational resilience strategy in the Experience! The Finger Lakes: The Groupon Partnership Decision (B) 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.
High brand equity
– Finger Lakes has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Finger Lakes to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Experience! The Finger Lakes: The Groupon Partnership Decision (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Experience! The Finger Lakes: The Groupon Partnership Decision (B) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Experience! The Finger Lakes: The Groupon Partnership Decision (B), in the dynamic environment Finger Lakes has struggled to respond to the nimble upstart competition. Finger Lakes has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Finger Lakes products
– To increase the profitability and margins on the products, Finger Lakes needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Experience! The Finger Lakes: The Groupon Partnership Decision (B), is just above the industry average. Finger Lakes 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.
Aligning sales with marketing
– It come across in the case study Experience! The Finger Lakes: The Groupon Partnership Decision (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 Experience! The Finger Lakes: The Groupon Partnership Decision (B) can leverage the sales team experience to cultivate customer relationships as Finger Lakes is planning to shift buying processes online.
High cash cycle compare to competitors
Finger Lakes 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 strategic competitive environment developments
– As Experience! The Finger Lakes: The Groupon Partnership Decision (B) HBR case study mentions - Finger Lakes 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.
Slow decision making process
– As mentioned earlier in the report, Finger Lakes 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. Finger Lakes 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Finger Lakes is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Experience! The Finger Lakes: The Groupon Partnership Decision (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Finger Lakes 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.
Need for greater diversity
– Finger Lakes has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Low market penetration in new markets
– Outside its home market of Finger Lakes, firm in the HBR case study Experience! The Finger Lakes: The Groupon Partnership Decision (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Experience! The Finger Lakes: The Groupon Partnership Decision (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 Experience! The Finger Lakes: The Groupon Partnership Decision (B) are -
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. Finger Lakes can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Finger Lakes is facing challenges because of the dominance of functional experts in the organization. Experience! The Finger Lakes: The Groupon Partnership Decision (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.
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. Finger Lakes 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
– Finger Lakes 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 Experience! The Finger Lakes: The Groupon Partnership Decision (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Finger Lakes to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Finger Lakes can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Experience! The Finger Lakes: The Groupon Partnership Decision (B) 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
– Finger Lakes 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Finger Lakes can use these opportunities to build new business models that can help the communities that Finger Lakes operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Creating value in data economy
– The success of analytics program of Finger Lakes has opened avenues for new revenue streams for the organization in the industry. This can help Finger Lakes to build a more holistic ecosystem as suggested in the Experience! The Finger Lakes: The Groupon Partnership Decision (B) case study. Finger Lakes can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Finger Lakes 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 Finger Lakes 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, Finger Lakes 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Finger Lakes can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Finger Lakes 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, Experience! The Finger Lakes: The Groupon Partnership Decision (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.
Better consumer reach
– The expansion of the 5G network will help Finger Lakes to increase its market reach. Finger Lakes 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.
Threats Experience! The Finger Lakes: The Groupon Partnership Decision (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Experience! The Finger Lakes: The Groupon Partnership Decision (B) are -
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. Finger Lakes needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Finger Lakes 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 Finger Lakes
– 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 Finger Lakes.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Finger Lakes 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.
Technology acceleration in Forth Industrial Revolution
– Finger Lakes has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Finger Lakes 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 Finger Lakes business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Finger Lakes 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.
Shortening product life cycle
– it is one of the major threat that Finger Lakes is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Consumer confidence and its impact on Finger Lakes 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.
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. Finger Lakes can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Finger Lakes 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.
Weighted SWOT Analysis of Experience! The Finger Lakes: The Groupon Partnership Decision (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 Experience! The Finger Lakes: The Groupon Partnership Decision (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 Experience! The Finger Lakes: The Groupon Partnership Decision (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 Experience! The Finger Lakes: The Groupon Partnership Decision (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 Experience! The Finger Lakes: The Groupon Partnership Decision (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 Finger Lakes needs to make to build a sustainable competitive advantage.