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 - – increasing transportation and logistics costs, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, increasing commodity prices, technology disruption,
increasing energy prices, there is backlash against globalization, 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 -
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.
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.
Sustainable margins compare to other players in Sales & Marketing industry
– Word of Mouth Marketing: SheSpeaks firm has clearly differentiated products in the market place. This has enabled Shespeaks Mouth to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Shespeaks Mouth to invest into research and development (R&D) and innovation.
Strong track record of project management
– Shespeaks Mouth is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Shespeaks Mouth digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Shespeaks Mouth 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.
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.
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.
Training and development
– Shespeaks Mouth has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Word of Mouth Marketing: SheSpeaks 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
– 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.
Successful track record of launching new products
– Shespeaks Mouth has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Shespeaks Mouth 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.
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 -
No frontier risks strategy
– After analyzing the HBR case study Word of Mouth Marketing: SheSpeaks, 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.
Skills based hiring
– The stress on hiring functional specialists at Shespeaks Mouth has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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.
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.
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.
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 Shespeaks Mouth supply chain. Even after few cautionary changes mentioned in the HBR case study - Word of Mouth Marketing: SheSpeaks, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Shespeaks Mouth vulnerable to further global disruptions in South East Asia.
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.
Capital Spending Reduction
– Even during the low interest decade, Shespeaks Mouth has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Word of Mouth Marketing: SheSpeaks, it seems that the employees of Shespeaks Mouth 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 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Shespeaks Mouth is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Word of Mouth Marketing: SheSpeaks 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 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 -
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.
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.
Manufacturing automation
– Shespeaks Mouth 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Shespeaks Mouth can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Shespeaks Mouth 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 Shespeaks Mouth to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Shespeaks Mouth 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.
Building a culture of innovation
– managers at Shespeaks Mouth 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.
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.
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.
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.
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.
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.
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.
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 -
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 .
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.
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.
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.
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.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Shespeaks Mouth 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 Word of Mouth Marketing: SheSpeaks .
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. Shespeaks Mouth 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 acceleration in Forth Industrial Revolution
– Shespeaks Mouth has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Shespeaks Mouth 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.
Shortening product life cycle
– it is one of the major threat that Shespeaks Mouth is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.