Metro-Goldwyn-Mayer (MGM) and Tom Cruise SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Metro-Goldwyn-Mayer (MGM) and Tom Cruise
In November 2006, Harry Sloan, chairman and CEO of Metro-Goldwyn-Mayer Inc. (MGM) offers movie star Tom Cruise and his business partner Paula Wagner a chance to run United Artists (UA), a dormant studio within MGM's portfolio. Just over two months earlier, Viacom chairman Sumner Redstone publicly complained about Cruise's controversial behavior and abruptly ended Cruise and Wagner's 14-year relationship with Viacom's movie studio, Paramount Pictures. Sloan's proposal gives Cruise a chance to strike back. Can Cruise, Wagner, and Sloan, who regards the deal as an "interesting experiment" aimed at aligning the incentives of studios and creative talent, make the partnership work?
Swot Analysis of "Metro-Goldwyn-Mayer (MGM) and Tom Cruise" written by Anita Elberse, Peter Stone includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cruise Goldwyn facing as an external strategic factors. Some of the topics covered in Metro-Goldwyn-Mayer (MGM) and Tom Cruise case study are - Strategic Management Strategies, Financial management, Growth strategy, Joint ventures, Product development, Talent management and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Metro-Goldwyn-Mayer (MGM) and Tom Cruise casestudy better are - – increasing energy prices, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation,
customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Metro-Goldwyn-Mayer (MGM) and Tom Cruise
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Metro-Goldwyn-Mayer (MGM) and Tom Cruise case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cruise Goldwyn, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cruise Goldwyn 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 Metro-Goldwyn-Mayer (MGM) and Tom Cruise can be done for the following purposes –
1. Strategic planning using facts provided in Metro-Goldwyn-Mayer (MGM) and Tom Cruise case study
2. Improving business portfolio management of Cruise Goldwyn
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 Cruise Goldwyn
Strengths Metro-Goldwyn-Mayer (MGM) and Tom Cruise | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cruise Goldwyn in Metro-Goldwyn-Mayer (MGM) and Tom Cruise Harvard Business Review case study are -
Innovation driven organization
– Cruise Goldwyn is one of the most innovative firm in sector. Manager in Metro-Goldwyn-Mayer (MGM) and Tom Cruise Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Cruise Goldwyn 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.
Ability to recruit top talent
– Cruise Goldwyn is one of the leading recruiters in the industry. Managers in the Metro-Goldwyn-Mayer (MGM) and Tom Cruise are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Cruise Goldwyn digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cruise Goldwyn 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.
Superior customer experience
– The customer experience strategy of Cruise Goldwyn in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Cruise Goldwyn 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 Metro-Goldwyn-Mayer (MGM) and Tom Cruise - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Sales & Marketing field
– Cruise Goldwyn 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 Cruise Goldwyn in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Cruise Goldwyn 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 Anita Elberse, Peter Stone 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
– Metro-Goldwyn-Mayer (MGM) and Tom Cruise firm has clearly differentiated products in the market place. This has enabled Cruise Goldwyn to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Cruise Goldwyn to invest into research and development (R&D) and innovation.
Organizational Resilience of Cruise Goldwyn
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cruise Goldwyn does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Cruise Goldwyn 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 Cruise Goldwyn is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Metro-Goldwyn-Mayer (MGM) and Tom Cruise Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Metro-Goldwyn-Mayer (MGM) and Tom Cruise 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 Metro-Goldwyn-Mayer (MGM) and Tom Cruise | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Metro-Goldwyn-Mayer (MGM) and Tom Cruise are -
Low market penetration in new markets
– Outside its home market of Cruise Goldwyn, firm in the HBR case study Metro-Goldwyn-Mayer (MGM) and Tom Cruise needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Cruise Goldwyn 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 - Metro-Goldwyn-Mayer (MGM) and Tom Cruise should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Cruise Goldwyn products
– To increase the profitability and margins on the products, Cruise Goldwyn needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Metro-Goldwyn-Mayer (MGM) and Tom Cruise HBR case study mentions - Cruise Goldwyn 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.
No frontier risks strategy
– After analyzing the HBR case study Metro-Goldwyn-Mayer (MGM) and Tom Cruise, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Skills based hiring
– The stress on hiring functional specialists at Cruise Goldwyn 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 operating costs
– Compare to the competitors, firm in the HBR case study Metro-Goldwyn-Mayer (MGM) and Tom Cruise 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 Cruise Goldwyn 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Metro-Goldwyn-Mayer (MGM) and Tom Cruise 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 Cruise Goldwyn has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Cruise Goldwyn 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.
Aligning sales with marketing
– It come across in the case study Metro-Goldwyn-Mayer (MGM) and Tom Cruise 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 Metro-Goldwyn-Mayer (MGM) and Tom Cruise can leverage the sales team experience to cultivate customer relationships as Cruise Goldwyn is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Metro-Goldwyn-Mayer (MGM) and Tom Cruise, it seems that the employees of Cruise Goldwyn don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Opportunities Metro-Goldwyn-Mayer (MGM) and Tom Cruise | 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 Metro-Goldwyn-Mayer (MGM) and Tom Cruise are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cruise Goldwyn 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, Metro-Goldwyn-Mayer (MGM) and Tom Cruise, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Cruise Goldwyn 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cruise Goldwyn 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cruise Goldwyn is facing challenges because of the dominance of functional experts in the organization. Metro-Goldwyn-Mayer (MGM) and Tom Cruise 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.
Learning at scale
– Online learning technologies has now opened space for Cruise Goldwyn 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 Cruise Goldwyn 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 Cruise Goldwyn to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Cruise Goldwyn to increase its market reach. Cruise Goldwyn 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.
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 Cruise Goldwyn 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.
Manufacturing automation
– Cruise Goldwyn 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.
Developing new processes and practices
– Cruise Goldwyn 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 Cruise Goldwyn can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Cruise Goldwyn can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cruise Goldwyn 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.
Threats Metro-Goldwyn-Mayer (MGM) and Tom Cruise External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Metro-Goldwyn-Mayer (MGM) and Tom Cruise are -
Increasing wage structure of Cruise Goldwyn
– 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 Cruise Goldwyn.
Regulatory challenges
– Cruise Goldwyn 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.
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 Cruise Goldwyn 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 Cruise Goldwyn 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cruise Goldwyn with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cruise Goldwyn 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 Metro-Goldwyn-Mayer (MGM) and Tom Cruise .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Metro-Goldwyn-Mayer (MGM) and Tom Cruise, Cruise Goldwyn 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 .
Consumer confidence and its impact on Cruise Goldwyn 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.
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. Cruise Goldwyn can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Cruise Goldwyn.
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 Cruise Goldwyn in the Sales & Marketing sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Metro-Goldwyn-Mayer (MGM) and Tom Cruise 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 Metro-Goldwyn-Mayer (MGM) and Tom Cruise 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 Metro-Goldwyn-Mayer (MGM) and Tom Cruise 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 Metro-Goldwyn-Mayer (MGM) and Tom Cruise 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 Metro-Goldwyn-Mayer (MGM) and Tom Cruise 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 Cruise Goldwyn needs to make to build a sustainable competitive advantage.