Word of Mouth Marketing: SheSpeaks SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Word of Mouth Marketing: SheSpeaks
Aliza Freud partnered with Josh McKay (both CBS '01) to launch SheSpeaks, a word-of-mouth (WOM) marketing community, in 2007. What business model would help them to compete in the world of Facebook and Twitter - and by what means should they measure the success of their marketing campaigns?
Swot Analysis of "Word of Mouth Marketing: SheSpeaks" written by Olivier Toubia includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Shespeaks Mouth facing as an external strategic factors. Some of the topics covered in Word of Mouth Marketing: SheSpeaks case study are - Strategic Management Strategies, Entrepreneurship, Financial analysis, Social platforms and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Word of Mouth Marketing: SheSpeaks casestudy better are - – supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, wage bills are increasing, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation,
increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Word of Mouth Marketing: SheSpeaks
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Word of Mouth Marketing: SheSpeaks case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shespeaks Mouth, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shespeaks Mouth 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 Word of Mouth Marketing: SheSpeaks can be done for the following purposes –
1. Strategic planning using facts provided in Word of Mouth Marketing: SheSpeaks case study
2. Improving business portfolio management of Shespeaks Mouth
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 Shespeaks Mouth
Strengths Word of Mouth Marketing: SheSpeaks | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shespeaks Mouth in Word of Mouth Marketing: SheSpeaks Harvard Business Review case study are -
Effective Research and Development (R&D)
– Shespeaks Mouth 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 Word of Mouth Marketing: SheSpeaks - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Shespeaks Mouth in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Word of Mouth Marketing: SheSpeaks Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
High brand equity
– Shespeaks Mouth has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Shespeaks Mouth to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Shespeaks Mouth 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.
Low bargaining power of suppliers
– Suppliers of Shespeaks Mouth in the sector have low bargaining power. Word of Mouth Marketing: SheSpeaks has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Shespeaks Mouth to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Shespeaks Mouth 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.
Diverse revenue streams
– Shespeaks Mouth is present in almost all the verticals within the industry. This has provided firm in Word of Mouth Marketing: SheSpeaks 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 recruit top talent
– Shespeaks Mouth is one of the leading recruiters in the industry. Managers in the Word of Mouth Marketing: SheSpeaks are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Shespeaks Mouth 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 Shespeaks Mouth is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Word of Mouth Marketing: SheSpeaks Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Sales & Marketing field
– Shespeaks Mouth 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 Shespeaks Mouth in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Shespeaks Mouth
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Shespeaks Mouth does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Word of Mouth Marketing: SheSpeaks | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Word of Mouth Marketing: SheSpeaks are -
Workers concerns about automation
– As automation is fast increasing in the segment, Shespeaks Mouth 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.
Need for greater diversity
– Shespeaks Mouth 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Word of Mouth Marketing: SheSpeaks 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 Shespeaks Mouth has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Shespeaks Mouth 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. Shespeaks Mouth 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.
Lack of clear differentiation of Shespeaks Mouth products
– To increase the profitability and margins on the products, Shespeaks Mouth needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Shespeaks Mouth has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Word of Mouth Marketing: SheSpeaks, is just above the industry average. Shespeaks Mouth needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Aligning sales with marketing
– It come across in the case study Word of Mouth Marketing: SheSpeaks 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 Word of Mouth Marketing: SheSpeaks can leverage the sales team experience to cultivate customer relationships as Shespeaks Mouth is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Word of Mouth Marketing: SheSpeaks HBR case study mentions - Shespeaks Mouth 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 operating costs
– Compare to the competitors, firm in the HBR case study Word of Mouth Marketing: SheSpeaks 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 Shespeaks Mouth 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Word of Mouth Marketing: SheSpeaks, in the dynamic environment Shespeaks Mouth has struggled to respond to the nimble upstart competition. Shespeaks Mouth has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Word of Mouth Marketing: SheSpeaks | 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 Word of Mouth Marketing: SheSpeaks are -
Developing new processes and practices
– Shespeaks Mouth 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.
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. Shespeaks Mouth can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Shespeaks Mouth 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.
Better consumer reach
– The expansion of the 5G network will help Shespeaks Mouth to increase its market reach. Shespeaks Mouth 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.
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. Shespeaks Mouth 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. Shespeaks Mouth 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.
Creating value in data economy
– The success of analytics program of Shespeaks Mouth has opened avenues for new revenue streams for the organization in the industry. This can help Shespeaks Mouth to build a more holistic ecosystem as suggested in the Word of Mouth Marketing: SheSpeaks case study. Shespeaks Mouth can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Shespeaks Mouth 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.
Using analytics as competitive advantage
– Shespeaks Mouth 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 Word of Mouth Marketing: SheSpeaks - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Shespeaks Mouth to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Shespeaks Mouth 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Shespeaks Mouth can use these opportunities to build new business models that can help the communities that Shespeaks Mouth operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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 Shespeaks Mouth in the consumer business. Now Shespeaks Mouth can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Shespeaks Mouth can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Word of Mouth Marketing: SheSpeaks 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Shespeaks Mouth 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, Word of Mouth Marketing: SheSpeaks, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Word of Mouth Marketing: SheSpeaks External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Word of Mouth Marketing: SheSpeaks are -
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. Shespeaks Mouth can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Shespeaks Mouth.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Word of Mouth Marketing: SheSpeaks, Shespeaks Mouth 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 .
Stagnating economy with rate increase
– Shespeaks Mouth 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. Shespeaks Mouth 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 Shespeaks Mouth 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.
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 Shespeaks Mouth in the Sales & Marketing sector and impact the bottomline of the organization.
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 Shespeaks Mouth business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Shespeaks Mouth with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Shespeaks Mouth 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.
Increasing wage structure of Shespeaks Mouth
– 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 Shespeaks Mouth.
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.
Regulatory challenges
– Shespeaks Mouth needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Weighted SWOT Analysis of Word of Mouth Marketing: SheSpeaks 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 Word of Mouth Marketing: SheSpeaks 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 Word of Mouth Marketing: SheSpeaks 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 Word of Mouth Marketing: SheSpeaks 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 Word of Mouth Marketing: SheSpeaks 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 Shespeaks Mouth needs to make to build a sustainable competitive advantage.
