Developing a New Smartphone Application: UrbanBaby SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Developing a New Smartphone Application: UrbanBaby
UrbanBaby is a newly developed smartphone application (app) that allows users to address the difficult task of finding activities, restaurants and other forms of entertainment for newborns to young teens. A number of issues must be addressed if it is going to be profitable. First, the app's creators, Alex and Pavel, are unsure how to characterize the large potential target market, parents, or if there are other target markets that might be interested. This is critical, as the success of the app depends on the cultivation of a strong online community that will contribute content. Second, they have to find a reliable source of data to populate the app. Third, they must decide whether to focus on Apple's operating system, which is popular in North America, or put more of their energy into competing operating systems that are much more popular in the rest of the world. Finally, they have a number of strategic marketing choices to make and to prioritize, including whether to keep the UrbanBaby brand name and risk the ire of similarly named competitors, how to price the app, how to position and promote the app and how to time the rollout. How these initial choices will affect subsequent strategic and tactical decisions is also a matter of concern.
Swot Analysis of "Developing a New Smartphone Application: UrbanBaby" written by Andrew Perkins includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Urbanbaby App facing as an external strategic factors. Some of the topics covered in Developing a New Smartphone Application: UrbanBaby case study are - Strategic Management Strategies, Entrepreneurship, Mobile, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Developing a New Smartphone Application: UrbanBaby casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, there is increasing trade war between United States & China, geopolitical disruptions, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings,
technology disruption, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Developing a New Smartphone Application: UrbanBaby
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Developing a New Smartphone Application: UrbanBaby case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Urbanbaby App, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Urbanbaby App 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 Developing a New Smartphone Application: UrbanBaby can be done for the following purposes –
1. Strategic planning using facts provided in Developing a New Smartphone Application: UrbanBaby case study
2. Improving business portfolio management of Urbanbaby App
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 Urbanbaby App
Strengths Developing a New Smartphone Application: UrbanBaby | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Urbanbaby App in Developing a New Smartphone Application: UrbanBaby Harvard Business Review case study are -
Diverse revenue streams
– Urbanbaby App is present in almost all the verticals within the industry. This has provided firm in Developing a New Smartphone Application: UrbanBaby 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.
Ability to lead change in Sales & Marketing field
– Urbanbaby App 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 Urbanbaby App in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Urbanbaby App 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 Andrew Perkins 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.
Cross disciplinary teams
– Horizontal connected teams at the Urbanbaby App 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
– Urbanbaby App is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Urbanbaby App has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Developing a New Smartphone Application: UrbanBaby 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.
High brand equity
– Urbanbaby App has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Urbanbaby App to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Urbanbaby App is one of the leading recruiters in the industry. Managers in the Developing a New Smartphone Application: UrbanBaby are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Urbanbaby App is one of the most innovative firm in sector. Manager in Developing a New Smartphone Application: UrbanBaby Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Urbanbaby App in the sector have low bargaining power. Developing a New Smartphone Application: UrbanBaby has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Urbanbaby App to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Urbanbaby App digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Urbanbaby App 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
– Developing a New Smartphone Application: UrbanBaby firm has clearly differentiated products in the market place. This has enabled Urbanbaby App to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Urbanbaby App to invest into research and development (R&D) and innovation.
Weaknesses Developing a New Smartphone Application: UrbanBaby | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Developing a New Smartphone Application: UrbanBaby are -
Workers concerns about automation
– As automation is fast increasing in the segment, Urbanbaby App needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High cash cycle compare to competitors
Urbanbaby App 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.
Aligning sales with marketing
– It come across in the case study Developing a New Smartphone Application: UrbanBaby 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 Developing a New Smartphone Application: UrbanBaby can leverage the sales team experience to cultivate customer relationships as Urbanbaby App is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Developing a New Smartphone Application: UrbanBaby, is just above the industry average. Urbanbaby App 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Developing a New Smartphone Application: UrbanBaby, in the dynamic environment Urbanbaby App has struggled to respond to the nimble upstart competition. Urbanbaby App has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Urbanbaby App 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 - Developing a New Smartphone Application: UrbanBaby should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Developing a New Smartphone Application: UrbanBaby, it seems that the employees of Urbanbaby App 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.
Lack of clear differentiation of Urbanbaby App products
– To increase the profitability and margins on the products, Urbanbaby App needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Urbanbaby App, firm in the HBR case study Developing a New Smartphone Application: UrbanBaby needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Developing a New Smartphone Application: UrbanBaby, 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Urbanbaby App is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Developing a New Smartphone Application: UrbanBaby can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Developing a New Smartphone Application: UrbanBaby | 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 Developing a New Smartphone Application: UrbanBaby are -
Creating value in data economy
– The success of analytics program of Urbanbaby App has opened avenues for new revenue streams for the organization in the industry. This can help Urbanbaby App to build a more holistic ecosystem as suggested in the Developing a New Smartphone Application: UrbanBaby case study. Urbanbaby App can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Urbanbaby App 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Urbanbaby App 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Urbanbaby App 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Urbanbaby App 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 Urbanbaby App to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Urbanbaby App 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, Developing a New Smartphone Application: UrbanBaby, 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
– Urbanbaby App can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Developing a New Smartphone Application: UrbanBaby 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.
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. Urbanbaby App can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Urbanbaby App 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.
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 Urbanbaby App in the consumer business. Now Urbanbaby App can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Urbanbaby App 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Urbanbaby App can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Urbanbaby App can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Urbanbaby App is facing challenges because of the dominance of functional experts in the organization. Developing a New Smartphone Application: UrbanBaby 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.
Threats Developing a New Smartphone Application: UrbanBaby External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Developing a New Smartphone Application: UrbanBaby are -
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. Urbanbaby App 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Urbanbaby App with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Urbanbaby App needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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 Urbanbaby App.
Shortening product life cycle
– it is one of the major threat that Urbanbaby App is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Urbanbaby App 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.
Environmental challenges
– Urbanbaby App 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. Urbanbaby App can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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 Urbanbaby App business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Developing a New Smartphone Application: UrbanBaby, Urbanbaby App 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 .
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. Urbanbaby App can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Urbanbaby App
– 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 Urbanbaby App.
High dependence on third party suppliers
– Urbanbaby App 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 Developing a New Smartphone Application: UrbanBaby 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 Developing a New Smartphone Application: UrbanBaby 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 Developing a New Smartphone Application: UrbanBaby 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 Developing a New Smartphone Application: UrbanBaby 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 Developing a New Smartphone Application: UrbanBaby 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 Urbanbaby App needs to make to build a sustainable competitive advantage.