Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version
Supplements the (A) case.On June 17, 2007, Real Madrid sealed its first Spanish league championship under new president Ramon Calderon, ending an unprecedented title drought. Real Madrid had seen a significant growth in revenues and now was the world's biggest soccer club and among the largest and most profitable sports franchises globally. Although Calderon signed several new stars in his first year, he also rejuvenated the team by acquiring the promising youngsters, thereby moving away from what had been dubbed the "Galacticos Strategy" introduced by former president Florentino Perez. Would the move away form this strategy bring continued successes on the field? And how would it impact real Madrid's business performance?
Swot Analysis of "Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version" written by Anita Elberse, John A. Quelch includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Madrid Galacticos facing as an external strategic factors. Some of the topics covered in Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version case study are - Strategic Management Strategies, Globalization and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version casestudy better are - – increasing household debt because of falling income levels, increasing transportation and logistics costs, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, technology disruption, talent flight as more people leaving formal jobs,
wage bills are increasing, there is backlash against globalization, etc
Introduction to SWOT Analysis of Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Madrid Galacticos, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Madrid Galacticos 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 Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version can be done for the following purposes –
1. Strategic planning using facts provided in Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version case study
2. Improving business portfolio management of Madrid Galacticos
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 Madrid Galacticos
Strengths Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Madrid Galacticos in Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version Harvard Business Review case study are -
High brand equity
– Madrid Galacticos has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Madrid Galacticos to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version 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.
Successful track record of launching new products
– Madrid Galacticos has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Madrid Galacticos 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.
Highly skilled collaborators
– Madrid Galacticos 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 Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Madrid Galacticos
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Madrid Galacticos 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
– Madrid Galacticos 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 Madrid Galacticos in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Madrid Galacticos is present in almost all the verticals within the industry. This has provided firm in Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version firm has clearly differentiated products in the market place. This has enabled Madrid Galacticos to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Madrid Galacticos to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Madrid Galacticos in the sector have low bargaining power. Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Madrid Galacticos to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Madrid Galacticos 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 Madrid Galacticos in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Madrid Galacticos digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Madrid Galacticos 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.
Weaknesses Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version 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 Madrid Galacticos has relatively successful track record of launching new products.
Need for greater diversity
– Madrid Galacticos 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.
No frontier risks strategy
– After analyzing the HBR case study Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version, 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.
Products dominated business model
– Even though Madrid Galacticos 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 - Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Madrid Galacticos 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.
Slow to strategic competitive environment developments
– As Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version HBR case study mentions - Madrid Galacticos 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.
Aligning sales with marketing
– It come across in the case study Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version 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 Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version can leverage the sales team experience to cultivate customer relationships as Madrid Galacticos is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Madrid Galacticos is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Madrid Galacticos 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version, in the dynamic environment Madrid Galacticos has struggled to respond to the nimble upstart competition. Madrid Galacticos has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Madrid Galacticos products
– To increase the profitability and margins on the products, Madrid Galacticos needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version | 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 Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Madrid Galacticos 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.
Leveraging digital technologies
– Madrid Galacticos 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.
Creating value in data economy
– The success of analytics program of Madrid Galacticos has opened avenues for new revenue streams for the organization in the industry. This can help Madrid Galacticos to build a more holistic ecosystem as suggested in the Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version case study. Madrid Galacticos can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Madrid Galacticos to increase its market reach. Madrid Galacticos 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Madrid Galacticos 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Madrid Galacticos is facing challenges because of the dominance of functional experts in the organization. Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version 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.
Manufacturing automation
– Madrid Galacticos 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Madrid Galacticos 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, Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version, 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, Madrid Galacticos can use these opportunities to build new business models that can help the communities that Madrid Galacticos operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Building a culture of innovation
– managers at Madrid Galacticos 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 Madrid Galacticos in the consumer business. Now Madrid Galacticos can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Madrid Galacticos 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 Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Madrid Galacticos to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Madrid Galacticos 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.
Threats Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version are -
Technology acceleration in Forth Industrial Revolution
– Madrid Galacticos has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Madrid Galacticos 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 dependence on third party suppliers
– Madrid Galacticos 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
– Madrid Galacticos 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Madrid Galacticos with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Madrid Galacticos 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.
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 Madrid Galacticos 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 wage structure of Madrid Galacticos
– 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 Madrid Galacticos.
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 Madrid Galacticos.
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. Madrid Galacticos 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 Madrid Galacticos 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.
Environmental challenges
– Madrid Galacticos 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. Madrid Galacticos can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Weighted SWOT Analysis of Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version 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 Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version 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 Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version 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 Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version 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 Real Madrid Club de Futbol in 2007: Beyond the Galacticos, Chinese Version 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 Madrid Galacticos needs to make to build a sustainable competitive advantage.