Wonder la: A Brand in the Service of Fun SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Wonder la: A Brand in the Service of Fun
The performance of Wonderla, the leader in the amusement park industry in South India, for the year 2011/12 could not be better. It grew at 30 per cent with more than one million customers visiting each of its two parks in Kochi and Bangalore. It also completed the development of a three-star hotel in its Bangalore park. Its growth is creating challenges that it has not faced before. The chief executive officer is concerned with the issue of prioritizing investment among its different businesses as the existing amusement parks are growing and new parks are being planned in two new locations. At the same time, effort is required to create demand for the hotel business. The concern extends beyond investment to examining the option of leveraging the brand Wonderla, which stands for "Fun," to its hotel, with attendant implications for that business and for the brand and its image. Author Sanal Kumar Velayudhan is affiliated with the Indian Institute of Management. Author Kochouseph Chittilappilly is affiliated with V-Guard Industries Ltd.
Swot Analysis of "Wonder la: A Brand in the Service of Fun" written by Sanal Kumar Velayudhan, Kochouseph Chittilappilly includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wonderla Parks facing as an external strategic factors. Some of the topics covered in Wonder la: A Brand in the Service of Fun case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Wonder la: A Brand in the Service of Fun casestudy better are - – technology disruption, increasing transportation and logistics costs, geopolitical disruptions, 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, increasing government debt because of Covid-19 spendings,
digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, etc
Introduction to SWOT Analysis of Wonder la: A Brand in the Service of Fun
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Wonder la: A Brand in the Service of Fun case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wonderla Parks, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wonderla Parks 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 Wonder la: A Brand in the Service of Fun can be done for the following purposes –
1. Strategic planning using facts provided in Wonder la: A Brand in the Service of Fun case study
2. Improving business portfolio management of Wonderla Parks
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 Wonderla Parks
Strengths Wonder la: A Brand in the Service of Fun | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wonderla Parks in Wonder la: A Brand in the Service of Fun Harvard Business Review case study are -
Training and development
– Wonderla Parks has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Wonder la: A Brand in the Service of Fun 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.
Operational resilience
– The operational resilience strategy in the Wonder la: A Brand in the Service of Fun 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.
Organizational Resilience of Wonderla Parks
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wonderla Parks does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Wonderla Parks is one of the most innovative firm in sector. Manager in Wonder la: A Brand in the Service of Fun Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Wonderla Parks in the sector have low bargaining power. Wonder la: A Brand in the Service of Fun has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wonderla Parks to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Sales & Marketing field
– Wonderla Parks 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 Wonderla Parks in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Wonderla Parks 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 Wonder la: A Brand in the Service of Fun - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Sales & Marketing industry
– Wonder la: A Brand in the Service of Fun firm has clearly differentiated products in the market place. This has enabled Wonderla Parks to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Wonderla Parks to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Wonderla Parks 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.
Diverse revenue streams
– Wonderla Parks is present in almost all the verticals within the industry. This has provided firm in Wonder la: A Brand in the Service of Fun 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.
Superior customer experience
– The customer experience strategy of Wonderla Parks in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Wonderla Parks is one of the leading recruiters in the industry. Managers in the Wonder la: A Brand in the Service of Fun are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Wonder la: A Brand in the Service of Fun | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Wonder la: A Brand in the Service of Fun are -
Aligning sales with marketing
– It come across in the case study Wonder la: A Brand in the Service of Fun 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 Wonder la: A Brand in the Service of Fun can leverage the sales team experience to cultivate customer relationships as Wonderla Parks is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Wonder la: A Brand in the Service of Fun, is just above the industry average. Wonderla Parks 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Wonder la: A Brand in the Service of Fun 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 Wonderla Parks 's lucrative customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Wonderla Parks supply chain. Even after few cautionary changes mentioned in the HBR case study - Wonder la: A Brand in the Service of Fun, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wonderla Parks vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Wonderla Parks is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Wonderla Parks needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Wonderla Parks to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Wonderla Parks 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Wonderla Parks 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.
Need for greater diversity
– Wonderla Parks 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.
High cash cycle compare to competitors
Wonderla Parks 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.
Skills based hiring
– The stress on hiring functional specialists at Wonderla Parks 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wonderla Parks is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Wonder la: A Brand in the Service of Fun can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Wonder la: A Brand in the Service of Fun | 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 Wonder la: A Brand in the Service of Fun are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Wonderla Parks 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 Wonderla Parks to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Wonderla Parks 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.
Creating value in data economy
– The success of analytics program of Wonderla Parks has opened avenues for new revenue streams for the organization in the industry. This can help Wonderla Parks to build a more holistic ecosystem as suggested in the Wonder la: A Brand in the Service of Fun case study. Wonderla Parks can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Wonderla Parks can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Wonderla Parks 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. Wonderla Parks 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.
Learning at scale
– Online learning technologies has now opened space for Wonderla Parks 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Wonderla Parks 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.
Using analytics as competitive advantage
– Wonderla Parks 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 Wonder la: A Brand in the Service of Fun - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Wonderla Parks to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wonderla Parks is facing challenges because of the dominance of functional experts in the organization. Wonder la: A Brand in the Service of Fun 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.
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. Wonderla Parks can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Wonderla Parks 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
– Wonderla Parks 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Wonderla Parks 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, Wonder la: A Brand in the Service of Fun, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Wonder la: A Brand in the Service of Fun External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Wonder la: A Brand in the Service of Fun 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 Wonderla Parks.
Stagnating economy with rate increase
– Wonderla Parks 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.
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. Wonderla Parks 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 wage structure of Wonderla Parks
– 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 Wonderla Parks.
High dependence on third party suppliers
– Wonderla Parks 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.
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.
Regulatory challenges
– Wonderla Parks 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.
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. Wonderla Parks needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Consumer confidence and its impact on Wonderla Parks 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Wonder la: A Brand in the Service of Fun, Wonderla Parks 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 .
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 Wonderla Parks business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wonderla Parks 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 Wonder la: A Brand in the Service of Fun .
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. Wonderla Parks can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Wonder la: A Brand in the Service of Fun 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 Wonder la: A Brand in the Service of Fun 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 Wonder la: A Brand in the Service of Fun 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 Wonder la: A Brand in the Service of Fun 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 Wonder la: A Brand in the Service of Fun 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 Wonderla Parks needs to make to build a sustainable competitive advantage.