Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version
The Clique Pens Writing Implements division of U.S. Home is a manufacturer of a full line of pens, pencils, markers, and art supplies. Despite solid sales, division president Elise Ferguson has seen gross margins drop from 42% in 2010 to just over 36% in 2012 as a result of various discounts, allowances, and other off-invoice deals. She is now considering a move away from these discounts in favor of Market Development Funds (MDF), which would be used explicitly to promote retail merchandising activity for Clique and in theory provide the company with more control of trade promotional dollars to influence consumer behavior. Along the way, Ferguson must consider the structure and problems of various trade promotions and the conflicting needs of her sales and marketing departments. This case introduces basic elements of promotion and pricing policy and the challenges of marketing through major mass retailers.
Swot Analysis of "Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version" written by Frank V. Cespedes, James Kindley includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Clique Pens facing as an external strategic factors. Some of the topics covered in Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version case study are - Strategic Management Strategies, Manufacturing, Marketing, Personnel policies, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version casestudy better are - – digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , increasing energy prices,
cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Clique Pens, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Clique Pens 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 Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version case study
2. Improving business portfolio management of Clique Pens
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 Clique Pens
Strengths Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Clique Pens in Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version Harvard Business Review case study are -
Strong track record of project management
– Clique Pens 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 Clique Pens
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Clique Pens does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Clique Pens digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Clique Pens 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version firm has clearly differentiated products in the market place. This has enabled Clique Pens to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Clique Pens to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Clique Pens 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.
Ability to lead change in Sales & Marketing field
– Clique Pens 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 Clique Pens in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Clique Pens is present in almost all the verticals within the industry. This has provided firm in Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version 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.
Effective Research and Development (R&D)
– Clique Pens 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 Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Clique Pens 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 Clique Pens is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Clique Pens has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Clique Pens 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.
Superior customer experience
– The customer experience strategy of Clique Pens in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Clique Pens 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 Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version are -
Need for greater diversity
– Clique Pens 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Clique Pens is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Clique Pens products
– To increase the profitability and margins on the products, Clique Pens needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version, it seems that the employees of Clique Pens 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 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 Clique Pens supply chain. Even after few cautionary changes mentioned in the HBR case study - Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Clique Pens vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Clique Pens 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. Clique Pens 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.
Products dominated business model
– Even though Clique Pens 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 - Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version HBR case study mentions - Clique Pens 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Frank V. Cespedes, James Kindley suggests that, Clique Pens 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
Clique Pens 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.
No frontier risks strategy
– After analyzing the HBR case study Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version | 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 Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version are -
Better consumer reach
– The expansion of the 5G network will help Clique Pens to increase its market reach. Clique Pens 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Clique Pens 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.
Leveraging digital technologies
– Clique Pens 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 Clique Pens can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Clique Pens 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.
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. Clique Pens can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Clique Pens 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.
Creating value in data economy
– The success of analytics program of Clique Pens has opened avenues for new revenue streams for the organization in the industry. This can help Clique Pens to build a more holistic ecosystem as suggested in the Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version case study. Clique Pens can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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, Clique Pens can use these opportunities to build new business models that can help the communities that Clique Pens operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Developing new processes and practices
– Clique Pens 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Clique Pens 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.
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 Clique Pens in the consumer business. Now Clique Pens can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Clique Pens 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 Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Clique Pens to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version are -
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 Clique Pens.
Shortening product life cycle
– it is one of the major threat that Clique Pens is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Clique Pens can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version .
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. Clique Pens 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
– Clique Pens 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.
Technology acceleration in Forth Industrial Revolution
– Clique Pens has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Clique Pens 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version, Clique Pens 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Clique Pens 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.
Regulatory challenges
– Clique Pens 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.
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.
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 Clique Pens business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Clique Pens
– 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 Clique Pens.
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 Clique Pens in the Sales & Marketing sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version 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 Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version 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 Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version 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 Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version 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 Clique Pens: The Writing Implements Division of U.S. Home, Spanish Version 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 Clique Pens needs to make to build a sustainable competitive advantage.