Using Product Design Strategically to Create Deeper Consumer Connections SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Using Product Design Strategically to Create Deeper Consumer Connections
Historically, product design has most often been considered a process for creating functional differentiation through added features, superior performance, and so forth. However, with the advent of more design-oriented companies, such as Apple, Dyson, and others, design is increasingly being seen as an important strategic tool in creating preference and deeper emotional value for the consumer. In this research, we show how different design elements may be used strategically to create two very different outcome chains from a consumer's perspective. This work shows that certain design elements are more likely to create functional product differentiation and transactional consumer outcomes, while other design strategies tap a more emotional form of value creation. As we show, an emotional focus in value creation is more likely to create desired and powerful outcomes such as loyalty, joy of use, and even passion. Given current business trends towards relationship-based customer management, this emphasis on emotional value creation through product design is particularly relevant. In order to make these ideas actionable, we offer specific product design strategies that managers can use to enhance the transactional and relational value of their customer relationships.
Swot Analysis of "Using Product Design Strategically to Create Deeper Consumer Connections" written by Charles H. Noble, Minu Kumar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Design Emotional facing as an external strategic factors. Some of the topics covered in Using Product Design Strategically to Create Deeper Consumer Connections case study are - Strategic Management Strategies, Design, Growth strategy, Manufacturing, Marketing, Psychology, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Using Product Design Strategically to Create Deeper Consumer Connections casestudy better are - – wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs,
geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Using Product Design Strategically to Create Deeper Consumer Connections
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Using Product Design Strategically to Create Deeper Consumer Connections case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Design Emotional, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Design Emotional 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 Using Product Design Strategically to Create Deeper Consumer Connections can be done for the following purposes –
1. Strategic planning using facts provided in Using Product Design Strategically to Create Deeper Consumer Connections case study
2. Improving business portfolio management of Design Emotional
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 Design Emotional
Strengths Using Product Design Strategically to Create Deeper Consumer Connections | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Design Emotional in Using Product Design Strategically to Create Deeper Consumer Connections Harvard Business Review case study are -
Training and development
– Design Emotional has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Using Product Design Strategically to Create Deeper Consumer Connections 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.
Operational resilience
– The operational resilience strategy in the Using Product Design Strategically to Create Deeper Consumer Connections 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.
Learning organization
- Design Emotional 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 Design Emotional is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Using Product Design Strategically to Create Deeper Consumer Connections Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Design Emotional in the sector have low bargaining power. Using Product Design Strategically to Create Deeper Consumer Connections has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Design Emotional to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Design Emotional
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Design Emotional does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Design Emotional 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 Charles H. Noble, Minu Kumar 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.
Diverse revenue streams
– Design Emotional is present in almost all the verticals within the industry. This has provided firm in Using Product Design Strategically to Create Deeper Consumer Connections 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.
Strong track record of project management
– Design Emotional is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Design Emotional digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Design Emotional 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.
Highly skilled collaborators
– Design Emotional 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 Using Product Design Strategically to Create Deeper Consumer Connections HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Sales & Marketing industry
– Using Product Design Strategically to Create Deeper Consumer Connections firm has clearly differentiated products in the market place. This has enabled Design Emotional to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Design Emotional to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Design Emotional 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 Using Product Design Strategically to Create Deeper Consumer Connections - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Using Product Design Strategically to Create Deeper Consumer Connections | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Using Product Design Strategically to Create Deeper Consumer Connections are -
High operating costs
– Compare to the competitors, firm in the HBR case study Using Product Design Strategically to Create Deeper Consumer Connections 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 Design Emotional 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Design Emotional is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Design Emotional needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Design Emotional to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Using Product Design Strategically to Create Deeper Consumer Connections HBR case study mentions - Design Emotional 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Design Emotional is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Using Product Design Strategically to Create Deeper Consumer Connections 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 star products
– The top 2 products and services of the firm as mentioned in the Using Product Design Strategically to Create Deeper Consumer Connections 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 Design Emotional has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Using Product Design Strategically to Create Deeper Consumer Connections, in the dynamic environment Design Emotional has struggled to respond to the nimble upstart competition. Design Emotional has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Design Emotional, firm in the HBR case study Using Product Design Strategically to Create Deeper Consumer Connections needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Design Emotional supply chain. Even after few cautionary changes mentioned in the HBR case study - Using Product Design Strategically to Create Deeper Consumer Connections, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Design Emotional vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Using Product Design Strategically to Create Deeper Consumer Connections 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 Using Product Design Strategically to Create Deeper Consumer Connections can leverage the sales team experience to cultivate customer relationships as Design Emotional is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Charles H. Noble, Minu Kumar suggests that, Design Emotional 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.
High cash cycle compare to competitors
Design Emotional 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.
Opportunities Using Product Design Strategically to Create Deeper Consumer Connections | 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 Using Product Design Strategically to Create Deeper Consumer Connections are -
Manufacturing automation
– Design Emotional 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.
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. Design Emotional can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Design Emotional has opened avenues for new revenue streams for the organization in the industry. This can help Design Emotional to build a more holistic ecosystem as suggested in the Using Product Design Strategically to Create Deeper Consumer Connections case study. Design Emotional can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Design Emotional 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, Design Emotional can use these opportunities to build new business models that can help the communities that Design Emotional operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Developing new processes and practices
– Design Emotional 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Design Emotional 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.
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 Design Emotional in the consumer business. Now Design Emotional can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Design Emotional 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.
Loyalty marketing
– Design Emotional has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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 Design Emotional 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.
Building a culture of innovation
– managers at Design Emotional 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.
Better consumer reach
– The expansion of the 5G network will help Design Emotional to increase its market reach. Design Emotional 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 Using Product Design Strategically to Create Deeper Consumer Connections External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Using Product Design Strategically to Create Deeper Consumer Connections are -
Stagnating economy with rate increase
– Design Emotional 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.
Environmental challenges
– Design Emotional 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. Design Emotional can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
High dependence on third party suppliers
– Design Emotional 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.
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. Design Emotional 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.
Consumer confidence and its impact on Design Emotional 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 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. Design Emotional needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Design Emotional with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Design Emotional can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Design Emotional has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Design Emotional 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Using Product Design Strategically to Create Deeper Consumer Connections, Design Emotional 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 .
Regulatory challenges
– Design Emotional 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Design Emotional 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.
Weighted SWOT Analysis of Using Product Design Strategically to Create Deeper Consumer Connections 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 Using Product Design Strategically to Create Deeper Consumer Connections 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 Using Product Design Strategically to Create Deeper Consumer Connections 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 Using Product Design Strategically to Create Deeper Consumer Connections 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 Using Product Design Strategically to Create Deeper Consumer Connections 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 Design Emotional needs to make to build a sustainable competitive advantage.