Generating Perceptual Maps from Social Media Data SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Generating Perceptual Maps from Social Media Data
Companies have long struggled to get a handle on how consumers feel about brands and products in real time. Perceptual maps are often use to help visualize a product 's relationship to other products in the competitive arena, but the data referenced to build perceptual maps is often expensive to obtain or incomplete. This case introduces students to a new tool that mines and aggregates social media to support the development of more meaningful perceptual maps.
Swot Analysis of "Generating Perceptual Maps from Social Media Data" written by Oded Netzer, Rajan Sambandam includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Perceptual Maps facing as an external strategic factors. Some of the topics covered in Generating Perceptual Maps from Social Media Data case study are - Strategic Management Strategies, Market research, Social platforms and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Generating Perceptual Maps from Social Media Data casestudy better are - – technology disruption, increasing household debt because of falling income levels, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, there is increasing trade war between United States & China,
there is backlash against globalization, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Generating Perceptual Maps from Social Media Data
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Generating Perceptual Maps from Social Media Data case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Perceptual Maps, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Perceptual Maps 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 Generating Perceptual Maps from Social Media Data can be done for the following purposes –
1. Strategic planning using facts provided in Generating Perceptual Maps from Social Media Data case study
2. Improving business portfolio management of Perceptual Maps
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 Perceptual Maps
Strengths Generating Perceptual Maps from Social Media Data | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Perceptual Maps in Generating Perceptual Maps from Social Media Data Harvard Business Review case study are -
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Perceptual Maps digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Perceptual Maps 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.
Effective Research and Development (R&D)
– Perceptual Maps 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 Generating Perceptual Maps from Social Media Data - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Perceptual Maps has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Generating Perceptual Maps from Social Media Data HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Perceptual Maps 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 Perceptual Maps is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Generating Perceptual Maps from Social Media Data Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Perceptual Maps is one of the leading recruiters in the industry. Managers in the Generating Perceptual Maps from Social Media Data are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Perceptual Maps has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Perceptual Maps to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Perceptual Maps
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Perceptual Maps 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 Perceptual Maps 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.
Superior customer experience
– The customer experience strategy of Perceptual Maps in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Perceptual Maps has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Perceptual Maps 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.
Ability to lead change in Sales & Marketing field
– Perceptual Maps 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 Perceptual Maps in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Generating Perceptual Maps from Social Media Data 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.
Weaknesses Generating Perceptual Maps from Social Media Data | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Generating Perceptual Maps from Social Media Data are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Generating Perceptual Maps from Social Media Data 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 Perceptual Maps has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Perceptual Maps 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 cash cycle compare to competitors
Perceptual Maps 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.
Products dominated business model
– Even though Perceptual Maps 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 - Generating Perceptual Maps from Social Media Data should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Generating Perceptual Maps from Social Media Data HBR case study mentions - Perceptual Maps 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Generating Perceptual Maps from Social Media Data, in the dynamic environment Perceptual Maps has struggled to respond to the nimble upstart competition. Perceptual Maps has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Perceptual Maps is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Perceptual Maps needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Perceptual Maps to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Perceptual Maps 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.
Low market penetration in new markets
– Outside its home market of Perceptual Maps, firm in the HBR case study Generating Perceptual Maps from Social Media Data needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Generating Perceptual Maps from Social Media Data 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 Perceptual Maps 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Perceptual Maps 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. Perceptual Maps 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.
Opportunities Generating Perceptual Maps from Social Media Data | 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 Generating Perceptual Maps from Social Media Data are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Perceptual Maps 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Perceptual Maps can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Perceptual Maps 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 Perceptual Maps in the consumer business. Now Perceptual Maps can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Perceptual Maps 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.
Creating value in data economy
– The success of analytics program of Perceptual Maps has opened avenues for new revenue streams for the organization in the industry. This can help Perceptual Maps to build a more holistic ecosystem as suggested in the Generating Perceptual Maps from Social Media Data case study. Perceptual Maps can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Perceptual Maps 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.
Loyalty marketing
– Perceptual Maps 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Perceptual Maps is facing challenges because of the dominance of functional experts in the organization. Generating Perceptual Maps from Social Media Data 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.
Leveraging digital technologies
– Perceptual Maps can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Perceptual Maps 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 Perceptual Maps 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
– Perceptual Maps 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 Generating Perceptual Maps from Social Media Data - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Perceptual Maps to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Generating Perceptual Maps from Social Media Data External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Generating Perceptual Maps from Social Media Data are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Perceptual Maps 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 Perceptual Maps 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 Generating Perceptual Maps from Social Media Data, Perceptual Maps 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 .
Increasing wage structure of Perceptual Maps
– 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 Perceptual Maps.
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. Perceptual Maps can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Perceptual Maps 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 Generating Perceptual Maps from Social Media Data .
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.
Consumer confidence and its impact on Perceptual Maps 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.
High dependence on third party suppliers
– Perceptual Maps 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.
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 Perceptual Maps business can come under increasing regulations regarding data privacy, data security, etc.
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.
Stagnating economy with rate increase
– Perceptual Maps 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Perceptual Maps with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Generating Perceptual Maps from Social Media Data 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 Generating Perceptual Maps from Social Media Data 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 Generating Perceptual Maps from Social Media Data 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 Generating Perceptual Maps from Social Media Data 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 Generating Perceptual Maps from Social Media Data 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 Perceptual Maps needs to make to build a sustainable competitive advantage.