Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version
How does a $2 million software sale happen? This case traces efforts by Siebel Systems to sell lead management software to discount broker Quick & Reilly. The buying process is mapped out over four years. Covers in detail the last six months--from Siebel's initial involvement to a challenge from competitor Oracle to the climax. The structure of Quick & Reilly's buying center is mapped, as is the role of its parent, Fleet Bank. The fortunes of the sale rise and fall as the Siebel account manager faces one obstacle after another. Presented in three parts, with opportunities to debate the account manager's choices and actions at each state. Part 2 describes the start of the sale from the buyer's perspective.
Swot Analysis of "Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version" written by John Deighton, Das Narayandas includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Siebel Sale facing as an external strategic factors. Some of the topics covered in Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version case study are - Strategic Management Strategies, Sales, Technology and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation,
competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, etc
Introduction to SWOT Analysis of Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Siebel Sale, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Siebel Sale 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 Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version can be done for the following purposes –
1. Strategic planning using facts provided in Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version case study
2. Improving business portfolio management of Siebel Sale
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 Siebel Sale
Strengths Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Siebel Sale in Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version Harvard Business Review case study are -
High switching costs
– The high switching costs that Siebel Sale 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version firm has clearly differentiated products in the market place. This has enabled Siebel Sale to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Siebel Sale to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Siebel Sale has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Siebel Sale 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.
Organizational Resilience of Siebel Sale
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Siebel Sale does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Siebel Sale 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.
Strong track record of project management
– Siebel Sale is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version 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.
Analytics focus
– Siebel Sale 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 John Deighton, Das Narayandas 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.
Learning organization
- Siebel Sale 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 Siebel Sale is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Siebel Sale is present in almost all the verticals within the industry. This has provided firm in Siebel Systems: Anatomy of a Sale, Part 2, Portuguese 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.
High brand equity
– Siebel Sale has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Siebel Sale to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Siebel Sale has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version 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.
Weaknesses Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version are -
High bargaining power of channel partners
– Because of the regulatory requirements, John Deighton, Das Narayandas suggests that, Siebel Sale 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.
Need for greater diversity
– Siebel Sale 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.
High cash cycle compare to competitors
Siebel Sale 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.
Low market penetration in new markets
– Outside its home market of Siebel Sale, firm in the HBR case study Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version, it seems that the employees of Siebel Sale 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.
Products dominated business model
– Even though Siebel Sale 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 - Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version should strive to include more intangible value offerings along with its core products and services.
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 Siebel Sale supply chain. Even after few cautionary changes mentioned in the HBR case study - Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Siebel Sale vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version 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 Siebel Sale 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Siebel Sale is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Siebel Sale needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Siebel Sale to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Siebel Sale 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. Siebel Sale 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.
Aligning sales with marketing
– It come across in the case study Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version 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 Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version can leverage the sales team experience to cultivate customer relationships as Siebel Sale is planning to shift buying processes online.
Opportunities Siebel Systems: Anatomy of a Sale, Part 2, Portuguese 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 Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Siebel Sale 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 Siebel Sale 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.
Using analytics as competitive advantage
– Siebel Sale 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 Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Siebel Sale to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Siebel Sale 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.
Manufacturing automation
– Siebel Sale 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Siebel Sale 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, Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Siebel Sale can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version 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.
Better consumer reach
– The expansion of the 5G network will help Siebel Sale to increase its market reach. Siebel Sale 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.
Learning at scale
– Online learning technologies has now opened space for Siebel Sale 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.
Leveraging digital technologies
– Siebel Sale 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.
Building a culture of innovation
– managers at Siebel Sale 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.
Creating value in data economy
– The success of analytics program of Siebel Sale has opened avenues for new revenue streams for the organization in the industry. This can help Siebel Sale to build a more holistic ecosystem as suggested in the Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version case study. Siebel Sale 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 Siebel Sale 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 Siebel Sale to hire the very best people irrespective of their geographical location.
Threats Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version are -
Consumer confidence and its impact on Siebel Sale 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.
Stagnating economy with rate increase
– Siebel Sale 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.
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. Siebel Sale needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Siebel Sale 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Siebel Sale 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 Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version .
Shortening product life cycle
– it is one of the major threat that Siebel Sale is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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. Siebel Sale 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.
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.
Environmental challenges
– Siebel Sale 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. Siebel Sale can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Technology acceleration in Forth Industrial Revolution
– Siebel Sale has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Siebel Sale 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.
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 Siebel Sale in the Sales & Marketing sector and impact the bottomline 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 Siebel Systems: Anatomy of a Sale, Part 2, Portuguese Version, Siebel Sale 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 .
High dependence on third party suppliers
– Siebel Sale 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.
Weighted SWOT Analysis of Siebel Systems: Anatomy of a Sale, Part 2, Portuguese 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 Siebel Systems: Anatomy of a Sale, Part 2, Portuguese 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 Siebel Systems: Anatomy of a Sale, Part 2, Portuguese 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 Siebel Systems: Anatomy of a Sale, Part 2, Portuguese 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 Siebel Systems: Anatomy of a Sale, Part 2, Portuguese 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 Siebel Sale needs to make to build a sustainable competitive advantage.