Case Study Description of Groom Energy Solutions: Selling Efficiency
Groom Energy Solutions helps organizations reduce their energy use and costs through the implementation of energy efficiency measures, which create long-term financial and environmental benefits. With early success serving customers in the cold storage and industrial manufacturing sectors, the seven-year-old company must now decide whether to continue expanding within these segments or transition into commercial retail and office buildings, which offer growth potential and unique challenges. Groom Energy must also decide which geographic regions provide the best opportunity. This case study provides background on the history of the energy efficiency industry, the energy efficiency paradox, and the benefits and challenges of a business focused on implementing efficiency measures. The case is particularly relevant to courses focused on energy management, environmental sustainability, and entrepreneurship within the energy and sustainability areas.
Authors :: Michael W. Toffel, Kira Fabrizio, Stephanie van Sice
Topics :: Strategy & Execution
Tags :: Change management, Forecasting, Growth strategy, Human resource management, International business, Manufacturing, Marketing, Research & development, Social enterprise, Strategic planning, Sustainability, Technology, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Groom Energy Solutions: Selling Efficiency" written by Michael W. Toffel, Kira Fabrizio, Stephanie van Sice includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Energy Groom facing as an external strategic factors. Some of the topics covered in Groom Energy Solutions: Selling Efficiency case study are - Strategic Management Strategies, Change management, Forecasting, Growth strategy, Human resource management, International business, Manufacturing, Marketing, Research & development, Social enterprise, Strategic planning, Sustainability, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Groom Energy Solutions: Selling Efficiency casestudy better are - – increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation,
competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Groom Energy Solutions: Selling Efficiency
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Groom Energy Solutions: Selling Efficiency case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Energy Groom, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Energy Groom 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 Groom Energy Solutions: Selling Efficiency can be done for the following purposes –
1. Strategic planning using facts provided in Groom Energy Solutions: Selling Efficiency case study
2. Improving business portfolio management of Energy Groom
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Energy Groom
Strengths Groom Energy Solutions: Selling Efficiency | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Energy Groom in Groom Energy Solutions: Selling Efficiency Harvard Business Review case study are -
Highly skilled collaborators
– Energy Groom 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 Groom Energy Solutions: Selling Efficiency HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Energy Groom is present in almost all the verticals within the industry. This has provided firm in Groom Energy Solutions: Selling Efficiency 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.
Training and development
– Energy Groom has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Groom Energy Solutions: Selling Efficiency 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Groom Energy Solutions: Selling Efficiency firm has clearly differentiated products in the market place. This has enabled Energy Groom to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Energy Groom to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Energy Groom 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 Groom Energy Solutions: Selling Efficiency - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Energy Groom 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 Energy Groom is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Groom Energy Solutions: Selling Efficiency Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Energy Groom digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Energy Groom 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.
Ability to recruit top talent
– Energy Groom is one of the leading recruiters in the industry. Managers in the Groom Energy Solutions: Selling Efficiency are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Energy Groom in the sector have low bargaining power. Groom Energy Solutions: Selling Efficiency has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Energy Groom to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Energy Groom has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Energy Groom to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Energy Groom 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 Michael W. Toffel, Kira Fabrizio, Stephanie van Sice 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.
Successful track record of launching new products
– Energy Groom has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Energy Groom 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.
Weaknesses Groom Energy Solutions: Selling Efficiency | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Groom Energy Solutions: Selling Efficiency are -
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 Energy Groom supply chain. Even after few cautionary changes mentioned in the HBR case study - Groom Energy Solutions: Selling Efficiency, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Energy Groom vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Energy Groom 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.
Products dominated business model
– Even though Energy Groom 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 - Groom Energy Solutions: Selling Efficiency should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Energy Groom is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Energy Groom needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Energy Groom to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Energy Groom 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.
Lack of clear differentiation of Energy Groom products
– To increase the profitability and margins on the products, Energy Groom needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Energy Groom, firm in the HBR case study Groom Energy Solutions: Selling Efficiency needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Groom Energy Solutions: Selling Efficiency HBR case study mentions - Energy Groom 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Groom Energy Solutions: Selling Efficiency, it seems that the employees of Energy Groom 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.
Slow decision making process
– As mentioned earlier in the report, Energy Groom 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. Energy Groom 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.
Need for greater diversity
– Energy Groom 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.
Opportunities Groom Energy Solutions: Selling Efficiency | 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 Groom Energy Solutions: Selling Efficiency are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Energy Groom is facing challenges because of the dominance of functional experts in the organization. Groom Energy Solutions: Selling Efficiency 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.
Creating value in data economy
– The success of analytics program of Energy Groom has opened avenues for new revenue streams for the organization in the industry. This can help Energy Groom to build a more holistic ecosystem as suggested in the Groom Energy Solutions: Selling Efficiency case study. Energy Groom can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Energy Groom can use these opportunities to build new business models that can help the communities that Energy Groom operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Energy Groom 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, Groom Energy Solutions: Selling Efficiency, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Energy Groom can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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
– Energy Groom can develop new processes and procedures in Strategy & Execution 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.
Learning at scale
– Online learning technologies has now opened space for Energy Groom 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.
Building a culture of innovation
– managers at Energy Groom 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 Strategy & Execution segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Energy Groom 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 Energy Groom to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Energy Groom can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Energy Groom can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Energy Groom in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Buying journey improvements
– Energy Groom can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Groom Energy Solutions: Selling Efficiency suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Threats Groom Energy Solutions: Selling Efficiency External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Groom Energy Solutions: Selling Efficiency are -
Increasing wage structure of Energy Groom
– 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 Energy Groom.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Energy Groom 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 Groom Energy Solutions: Selling Efficiency .
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
– Energy Groom 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 Strategy & Execution industry regulations.
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 Energy Groom.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Energy Groom in the Strategy & Execution industry. The Strategy & Execution 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.
Stagnating economy with rate increase
– Energy Groom 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.
Consumer confidence and its impact on Energy Groom 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 Groom Energy Solutions: Selling Efficiency, Energy Groom may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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 Energy Groom with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Energy Groom business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Energy Groom 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. Energy Groom can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of Groom Energy Solutions: Selling Efficiency 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 Groom Energy Solutions: Selling Efficiency 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 Groom Energy Solutions: Selling Efficiency 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 Groom Energy Solutions: Selling Efficiency 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 Groom Energy Solutions: Selling Efficiency 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 Energy Groom needs to make to build a sustainable competitive advantage.
