British Airways: "Go for It, America!" Promotion (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of British Airways: "Go for It, America!" Promotion (A)
Senior marketing executives of a major international airline are deciding on a strategy to address a crisis situation precipitated by a series of terrorist acts. The company is experiencing the worst downturn ever in its U.S.-U.K. travel business due to media reports and resulting consumer perceptions that Europe is under a "reign of terror." Alternative strategies range from doing nothing to staging an ambitious sales promotion. Major issues include: the role of sales promotion in addressing consumer perceptions of a life-and-death issue (i.e., terrorism), and the implementation and integration of advertising, sales promotion, and public relations efforts within a compressed time frame.
Swot Analysis of "British Airways: "Go for It, America!" Promotion (A)" written by Stephen A. Greyser, John L. Teopaco includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Promotion Perceptions facing as an external strategic factors. Some of the topics covered in British Airways: "Go for It, America!" Promotion (A) case study are - Strategic Management Strategies, Marketing, Public relations and Sales & Marketing.
Some of the macro environment factors that can be used to understand the British Airways: "Go for It, America!" Promotion (A) casestudy better are - – increasing commodity prices, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, there is backlash against globalization,
customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of British Airways: "Go for It, America!" Promotion (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in British Airways: "Go for It, America!" Promotion (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Promotion Perceptions, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Promotion Perceptions 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 British Airways: "Go for It, America!" Promotion (A) can be done for the following purposes –
1. Strategic planning using facts provided in British Airways: "Go for It, America!" Promotion (A) case study
2. Improving business portfolio management of Promotion Perceptions
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 Promotion Perceptions
Strengths British Airways: "Go for It, America!" Promotion (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Promotion Perceptions in British Airways: "Go for It, America!" Promotion (A) Harvard Business Review case study are -
Highly skilled collaborators
– Promotion Perceptions 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 British Airways: "Go for It, America!" Promotion (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Sales & Marketing field
– Promotion Perceptions 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 Promotion Perceptions in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Promotion Perceptions 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 British Airways: "Go for It, America!" Promotion (A) 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.
Strong track record of project management
– Promotion Perceptions is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Promotion Perceptions is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Stephen A. Greyser, John L. Teopaco can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in Sales & Marketing industry
– British Airways: "Go for It, America!" Promotion (A) firm has clearly differentiated products in the market place. This has enabled Promotion Perceptions to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Promotion Perceptions to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Promotion Perceptions is one of the leading recruiters in the industry. Managers in the British Airways: "Go for It, America!" Promotion (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Promotion Perceptions in the sector have low bargaining power. British Airways: "Go for It, America!" Promotion (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Promotion Perceptions to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Promotion Perceptions has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Promotion Perceptions to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Promotion Perceptions 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 British Airways: "Go for It, America!" Promotion (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Promotion Perceptions is one of the most innovative firm in sector. Manager in British Airways: "Go for It, America!" Promotion (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses British Airways: "Go for It, America!" Promotion (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of British Airways: "Go for It, America!" Promotion (A) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study British Airways: "Go for It, America!" Promotion (A), is just above the industry average. Promotion Perceptions 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.
Slow to strategic competitive environment developments
– As British Airways: "Go for It, America!" Promotion (A) HBR case study mentions - Promotion Perceptions 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.
Products dominated business model
– Even though Promotion Perceptions 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 - British Airways: "Go for It, America!" Promotion (A) should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study British Airways: "Go for It, America!" Promotion (A), in the dynamic environment Promotion Perceptions has struggled to respond to the nimble upstart competition. Promotion Perceptions has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Promotion Perceptions 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.
Lack of clear differentiation of Promotion Perceptions products
– To increase the profitability and margins on the products, Promotion Perceptions needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Promotion Perceptions 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 British Airways: "Go for It, America!" Promotion (A) 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 Promotion Perceptions has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study British Airways: "Go for It, America!" Promotion (A) 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 Promotion Perceptions 's lucrative customers.
Interest costs
– Compare to the competition, Promotion Perceptions 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.
High cash cycle compare to competitors
Promotion Perceptions 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.
Opportunities British Airways: "Go for It, America!" Promotion (A) | 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 British Airways: "Go for It, America!" Promotion (A) are -
Developing new processes and practices
– Promotion Perceptions 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Promotion Perceptions can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Promotion Perceptions can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. British Airways: "Go for It, America!" Promotion (A) 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.
Manufacturing automation
– Promotion Perceptions 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.
Building a culture of innovation
– managers at Promotion Perceptions 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.
Learning at scale
– Online learning technologies has now opened space for Promotion Perceptions 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.
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. Promotion Perceptions 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. Promotion Perceptions 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.
Using analytics as competitive advantage
– Promotion Perceptions 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 British Airways: "Go for It, America!" Promotion (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Promotion Perceptions 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 Promotion Perceptions 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.
Creating value in data economy
– The success of analytics program of Promotion Perceptions has opened avenues for new revenue streams for the organization in the industry. This can help Promotion Perceptions to build a more holistic ecosystem as suggested in the British Airways: "Go for It, America!" Promotion (A) case study. Promotion Perceptions can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Promotion Perceptions is facing challenges because of the dominance of functional experts in the organization. British Airways: "Go for It, America!" Promotion (A) 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.
Better consumer reach
– The expansion of the 5G network will help Promotion Perceptions to increase its market reach. Promotion Perceptions 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.
Leveraging digital technologies
– Promotion Perceptions 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.
Threats British Airways: "Go for It, America!" Promotion (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study British Airways: "Go for It, America!" Promotion (A) are -
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 Promotion Perceptions.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Promotion Perceptions with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Promotion Perceptions has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Promotion Perceptions 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.
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. Promotion Perceptions needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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.
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. Promotion Perceptions 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, Promotion Perceptions 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 British Airways: "Go for It, America!" Promotion (A) .
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 Promotion Perceptions business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Promotion Perceptions
– 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 Promotion Perceptions.
High dependence on third party suppliers
– Promotion Perceptions 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study British Airways: "Go for It, America!" Promotion (A), Promotion Perceptions may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Promotion Perceptions can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Promotion Perceptions 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.
Weighted SWOT Analysis of British Airways: "Go for It, America!" Promotion (A) 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 British Airways: "Go for It, America!" Promotion (A) 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 British Airways: "Go for It, America!" Promotion (A) 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 British Airways: "Go for It, America!" Promotion (A) 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 British Airways: "Go for It, America!" Promotion (A) 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 Promotion Perceptions needs to make to build a sustainable competitive advantage.
