Case Study Description of DoubleClick Buys Abacus (B)
This case is available in only hard copy format (HBP does not have digital distribution rights to the content). As a result, a digital Educator Copy of the case is not available through this web site.Supplements the (A) case.
Swot Analysis of "DoubleClick Buys Abacus (B)" written by John Deighton includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Copy Doubleclick facing as an external strategic factors. Some of the topics covered in DoubleClick Buys Abacus (B) case study are - Strategic Management Strategies, Internet, Security & privacy and Sales & Marketing.
Some of the macro environment factors that can be used to understand the DoubleClick Buys Abacus (B) casestudy better are - – increasing energy prices, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings,
technology disruption, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of DoubleClick Buys Abacus (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in DoubleClick Buys Abacus (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Copy Doubleclick, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Copy Doubleclick 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 DoubleClick Buys Abacus (B) can be done for the following purposes –
1. Strategic planning using facts provided in DoubleClick Buys Abacus (B) case study
2. Improving business portfolio management of Copy Doubleclick
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 Copy Doubleclick
Strengths DoubleClick Buys Abacus (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Copy Doubleclick in DoubleClick Buys Abacus (B) Harvard Business Review case study are -
Effective Research and Development (R&D)
– Copy Doubleclick 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 DoubleClick Buys Abacus (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Copy Doubleclick is present in almost all the verticals within the industry. This has provided firm in DoubleClick Buys Abacus (B) 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.
Successful track record of launching new products
– Copy Doubleclick has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Copy Doubleclick 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.
Operational resilience
– The operational resilience strategy in the DoubleClick Buys Abacus (B) 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.
Sustainable margins compare to other players in Sales & Marketing industry
– DoubleClick Buys Abacus (B) firm has clearly differentiated products in the market place. This has enabled Copy Doubleclick to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Copy Doubleclick to invest into research and development (R&D) and innovation.
Organizational Resilience of Copy Doubleclick
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Copy Doubleclick does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Sales & Marketing field
– Copy Doubleclick 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 Copy Doubleclick in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Copy Doubleclick 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 Copy Doubleclick is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in DoubleClick Buys Abacus (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Copy Doubleclick is one of the leading recruiters in the industry. Managers in the DoubleClick Buys Abacus (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Copy Doubleclick has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in DoubleClick Buys Abacus (B) 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Copy Doubleclick digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Copy Doubleclick 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.
High brand equity
– Copy Doubleclick has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Copy Doubleclick to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses DoubleClick Buys Abacus (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of DoubleClick Buys Abacus (B) are -
High bargaining power of channel partners
– Because of the regulatory requirements, John Deighton suggests that, Copy Doubleclick is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Increasing silos among functional specialists
– The organizational structure of Copy Doubleclick is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Copy Doubleclick needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Copy Doubleclick to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Copy Doubleclick 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 DoubleClick Buys Abacus (B) 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 Copy Doubleclick 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 DoubleClick Buys Abacus (B), in the dynamic environment Copy Doubleclick has struggled to respond to the nimble upstart competition. Copy Doubleclick has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Copy Doubleclick is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study DoubleClick Buys Abacus (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Copy Doubleclick 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.
Aligning sales with marketing
– It come across in the case study DoubleClick Buys Abacus (B) 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 DoubleClick Buys Abacus (B) can leverage the sales team experience to cultivate customer relationships as Copy Doubleclick is planning to shift buying processes online.
High cash cycle compare to competitors
Copy Doubleclick 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.
Slow to strategic competitive environment developments
– As DoubleClick Buys Abacus (B) HBR case study mentions - Copy Doubleclick 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.
Slow decision making process
– As mentioned earlier in the report, Copy Doubleclick 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. Copy Doubleclick 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 DoubleClick Buys Abacus (B) | 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 DoubleClick Buys Abacus (B) are -
Learning at scale
– Online learning technologies has now opened space for Copy Doubleclick to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Copy Doubleclick 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 Copy Doubleclick to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Copy Doubleclick 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.
Creating value in data economy
– The success of analytics program of Copy Doubleclick has opened avenues for new revenue streams for the organization in the industry. This can help Copy Doubleclick to build a more holistic ecosystem as suggested in the DoubleClick Buys Abacus (B) case study. Copy Doubleclick can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Copy Doubleclick can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. DoubleClick Buys Abacus (B) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Better consumer reach
– The expansion of the 5G network will help Copy Doubleclick to increase its market reach. Copy Doubleclick 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.
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. Copy Doubleclick can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Copy Doubleclick 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.
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. Copy Doubleclick can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Copy Doubleclick is facing challenges because of the dominance of functional experts in the organization. DoubleClick Buys Abacus (B) 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Copy Doubleclick 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Copy Doubleclick can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Copy Doubleclick 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.
Threats DoubleClick Buys Abacus (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study DoubleClick Buys Abacus (B) are -
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 wage structure of Copy Doubleclick
– 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 Copy Doubleclick.
Technology acceleration in Forth Industrial Revolution
– Copy Doubleclick has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Copy Doubleclick 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.
Environmental challenges
– Copy Doubleclick 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. Copy Doubleclick can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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 Copy Doubleclick 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 Copy Doubleclick business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Copy Doubleclick 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.
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. Copy Doubleclick 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Copy Doubleclick 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 DoubleClick Buys Abacus (B) .
High dependence on third party suppliers
– Copy Doubleclick 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.
Stagnating economy with rate increase
– Copy Doubleclick 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.
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 Copy Doubleclick.
Regulatory challenges
– Copy Doubleclick 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 DoubleClick Buys Abacus (B) 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 DoubleClick Buys Abacus (B) 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 DoubleClick Buys Abacus (B) 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 DoubleClick Buys Abacus (B) 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 DoubleClick Buys Abacus (B) 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 Copy Doubleclick needs to make to build a sustainable competitive advantage.