CCM Hockey: The Re-Launch of the U+ Pro Skate SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of CCM Hockey: The Re-Launch of the U+ Pro Skate
CCM Hockey (CCM) had been losing market share to competitors in the hockey skate business. In order to counteract this trend, in March 2008, the most innovative pair of hockey skates ever developed by CCM was made available to customers. Soon after the launch, however, some quality issues developed. CCM decided to replace the skates with an identical pair while trying to remedy the problem. In 2009, new improved skates were put on the market but they looked identical to the previous model. Buyers were skeptical and, as a result, sales were poor. Both the trade and individual consumers had lost confidence in the brand. CCM returned to the drawing board and redesigned the skates but also decided to launch the skates close to four months after the normal industry cycle. The decision was complicated by a stagnant market and indistinct consumer segments. The brand manager and his assistant were faced with developing a strong launch strategy because the future of the CCM Skate brand depended on a successful launch.
Swot Analysis of "CCM Hockey: The Re-Launch of the U+ Pro Skate" written by Christopher A. Ross includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ccm Skates facing as an external strategic factors. Some of the topics covered in CCM Hockey: The Re-Launch of the U+ Pro Skate case study are - Strategic Management Strategies, Manufacturing, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the CCM Hockey: The Re-Launch of the U+ Pro Skate casestudy better are - – increasing transportation and logistics costs, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, technology disruption, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs,
there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of CCM Hockey: The Re-Launch of the U+ Pro Skate
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in CCM Hockey: The Re-Launch of the U+ Pro Skate case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ccm Skates, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ccm Skates 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 CCM Hockey: The Re-Launch of the U+ Pro Skate can be done for the following purposes –
1. Strategic planning using facts provided in CCM Hockey: The Re-Launch of the U+ Pro Skate case study
2. Improving business portfolio management of Ccm Skates
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 Ccm Skates
Strengths CCM Hockey: The Re-Launch of the U+ Pro Skate | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ccm Skates in CCM Hockey: The Re-Launch of the U+ Pro Skate Harvard Business Review case study are -
Ability to recruit top talent
– Ccm Skates is one of the leading recruiters in the industry. Managers in the CCM Hockey: The Re-Launch of the U+ Pro Skate are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Ccm Skates 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 CCM Hockey: The Re-Launch of the U+ Pro Skate - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Ccm Skates has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Cross disciplinary teams
– Horizontal connected teams at the Ccm Skates 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Ccm Skates digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ccm Skates 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.
Low bargaining power of suppliers
– Suppliers of Ccm Skates in the sector have low bargaining power. CCM Hockey: The Re-Launch of the U+ Pro Skate has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ccm Skates to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Ccm Skates has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in CCM Hockey: The Re-Launch of the U+ Pro Skate 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 CCM Hockey: The Re-Launch of the U+ Pro Skate 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
– Ccm Skates has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ccm Skates 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.
Learning organization
- Ccm Skates 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 Ccm Skates is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in CCM Hockey: The Re-Launch of the U+ Pro Skate Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Ccm Skates 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 CCM Hockey: The Re-Launch of the U+ Pro Skate HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Ccm Skates
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ccm Skates does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses CCM Hockey: The Re-Launch of the U+ Pro Skate | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CCM Hockey: The Re-Launch of the U+ Pro Skate are -
Low market penetration in new markets
– Outside its home market of Ccm Skates, firm in the HBR case study CCM Hockey: The Re-Launch of the U+ Pro Skate needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study CCM Hockey: The Re-Launch of the U+ Pro Skate, it seems that the employees of Ccm Skates 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Ccm Skates 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.
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 Ccm Skates supply chain. Even after few cautionary changes mentioned in the HBR case study - CCM Hockey: The Re-Launch of the U+ Pro Skate, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ccm Skates vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study CCM Hockey: The Re-Launch of the U+ Pro Skate, is just above the industry average. Ccm Skates 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 cash cycle compare to competitors
Ccm Skates has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ccm Skates is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study CCM Hockey: The Re-Launch of the U+ Pro Skate can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Ccm Skates has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Ccm Skates even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Interest costs
– Compare to the competition, Ccm Skates 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the CCM Hockey: The Re-Launch of the U+ Pro Skate 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 Ccm Skates has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study CCM Hockey: The Re-Launch of the U+ Pro Skate, in the dynamic environment Ccm Skates has struggled to respond to the nimble upstart competition. Ccm Skates has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities CCM Hockey: The Re-Launch of the U+ Pro Skate | 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 CCM Hockey: The Re-Launch of the U+ Pro Skate are -
Manufacturing automation
– Ccm Skates 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
– Ccm Skates 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 Ccm Skates can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Ccm Skates 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. Ccm Skates 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ccm Skates is facing challenges because of the dominance of functional experts in the organization. CCM Hockey: The Re-Launch of the U+ Pro Skate 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.
Using analytics as competitive advantage
– Ccm Skates 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 CCM Hockey: The Re-Launch of the U+ Pro Skate - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ccm Skates to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Ccm Skates can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ccm Skates 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ccm Skates 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.
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. Ccm Skates can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Ccm Skates 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.
Leveraging digital technologies
– Ccm Skates 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 Ccm Skates has opened avenues for new revenue streams for the organization in the industry. This can help Ccm Skates to build a more holistic ecosystem as suggested in the CCM Hockey: The Re-Launch of the U+ Pro Skate case study. Ccm Skates can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats CCM Hockey: The Re-Launch of the U+ Pro Skate External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study CCM Hockey: The Re-Launch of the U+ Pro Skate are -
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 Ccm Skates 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 Ccm Skates 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 Ccm Skates with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Ccm Skates 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 CCM Hockey: The Re-Launch of the U+ Pro Skate, Ccm Skates 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ccm Skates 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 CCM Hockey: The Re-Launch of the U+ Pro Skate .
Stagnating economy with rate increase
– Ccm Skates 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.
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 acceleration in Forth Industrial Revolution
– Ccm Skates has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Ccm Skates 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. Ccm Skates needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Ccm Skates 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.
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 Ccm Skates.
Environmental challenges
– Ccm Skates 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. Ccm Skates can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Weighted SWOT Analysis of CCM Hockey: The Re-Launch of the U+ Pro Skate 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 CCM Hockey: The Re-Launch of the U+ Pro Skate 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 CCM Hockey: The Re-Launch of the U+ Pro Skate 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 CCM Hockey: The Re-Launch of the U+ Pro Skate 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 CCM Hockey: The Re-Launch of the U+ Pro Skate 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 Ccm Skates needs to make to build a sustainable competitive advantage.