zipRealty: Leading a Start-up to the Next Level (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of zipRealty: Leading a Start-up to the Next Level (B)
Supplement to case B5705. Start-up company zipRealty is a real estate brokerage that leveraged the Internet on the belief that selling or buying a home could be faster, easier, and more efficient than was possible with existing approaches to residential home transactions. Despite zipRealty's successes, the company experienced a series of external and internal challenges. Please note: This case also has an (A) supplement available.
Swot Analysis of "zipRealty: Leading a Start-up to the Next Level (B)" written by Jennifer A. Chatman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ziprealty B5705 facing as an external strategic factors. Some of the topics covered in zipRealty: Leading a Start-up to the Next Level (B) case study are - Strategic Management Strategies, Entrepreneurship, Organizational structure and Strategy & Execution.
Some of the macro environment factors that can be used to understand the zipRealty: Leading a Start-up to the Next Level (B) casestudy better are - – there is backlash against globalization, increasing commodity prices, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models,
wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of zipRealty: Leading a Start-up to the Next Level (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in zipRealty: Leading a Start-up to the Next Level (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ziprealty B5705, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ziprealty B5705 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 zipRealty: Leading a Start-up to the Next Level (B) can be done for the following purposes –
1. Strategic planning using facts provided in zipRealty: Leading a Start-up to the Next Level (B) case study
2. Improving business portfolio management of Ziprealty B5705
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 Ziprealty B5705
Strengths zipRealty: Leading a Start-up to the Next Level (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ziprealty B5705 in zipRealty: Leading a Start-up to the Next Level (B) Harvard Business Review case study are -
Highly skilled collaborators
– Ziprealty B5705 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 zipRealty: Leading a Start-up to the Next Level (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Ziprealty B5705 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Ziprealty B5705 is one of the most innovative firm in sector. Manager in zipRealty: Leading a Start-up to the Next Level (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Ziprealty B5705 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ziprealty B5705 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Ziprealty B5705 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.
Low bargaining power of suppliers
– Suppliers of Ziprealty B5705 in the sector have low bargaining power. zipRealty: Leading a Start-up to the Next Level (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ziprealty B5705 to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Ziprealty B5705 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 Ziprealty B5705 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in zipRealty: Leading a Start-up to the Next Level (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Ziprealty B5705 is one of the leading recruiters in the industry. Managers in the zipRealty: Leading a Start-up to the Next Level (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Ziprealty B5705 is present in almost all the verticals within the industry. This has provided firm in zipRealty: Leading a Start-up to the Next Level (B) 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.
Organizational Resilience of Ziprealty B5705
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ziprealty B5705 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– zipRealty: Leading a Start-up to the Next Level (B) firm has clearly differentiated products in the market place. This has enabled Ziprealty B5705 to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Ziprealty B5705 to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the zipRealty: Leading a Start-up to the Next Level (B) 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 zipRealty: Leading a Start-up to the Next Level (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of zipRealty: Leading a Start-up to the Next Level (B) are -
Low market penetration in new markets
– Outside its home market of Ziprealty B5705, firm in the HBR case study zipRealty: Leading a Start-up to the Next Level (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Ziprealty B5705 supply chain. Even after few cautionary changes mentioned in the HBR case study - zipRealty: Leading a Start-up to the Next Level (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ziprealty B5705 vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Ziprealty B5705 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 bargaining power of channel partners
– Because of the regulatory requirements, Jennifer A. Chatman suggests that, Ziprealty B5705 is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ziprealty B5705 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study zipRealty: Leading a Start-up to the Next Level (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study zipRealty: Leading a Start-up to the Next Level (B) 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 Ziprealty B5705 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Ziprealty B5705 has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Ziprealty B5705 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.
Need for greater diversity
– Ziprealty B5705 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study zipRealty: Leading a Start-up to the Next Level (B), in the dynamic environment Ziprealty B5705 has struggled to respond to the nimble upstart competition. Ziprealty B5705 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study zipRealty: Leading a Start-up to the Next Level (B), it seems that the employees of Ziprealty B5705 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 zipRealty: Leading a Start-up to the Next Level (B) | 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 zipRealty: Leading a Start-up to the Next Level (B) are -
Buying journey improvements
– Ziprealty B5705 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. zipRealty: Leading a Start-up to the Next Level (B) 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.
Loyalty marketing
– Ziprealty B5705 has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, 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. Ziprealty B5705 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 Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ziprealty B5705 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. Ziprealty B5705 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ziprealty B5705 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.
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. Ziprealty B5705 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Ziprealty B5705 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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Ziprealty B5705 in the consumer business. Now Ziprealty B5705 can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ziprealty B5705 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, zipRealty: Leading a Start-up to the Next Level (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ziprealty B5705 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 Ziprealty B5705 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.
Better consumer reach
– The expansion of the 5G network will help Ziprealty B5705 to increase its market reach. Ziprealty B5705 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.
Creating value in data economy
– The success of analytics program of Ziprealty B5705 has opened avenues for new revenue streams for the organization in the industry. This can help Ziprealty B5705 to build a more holistic ecosystem as suggested in the zipRealty: Leading a Start-up to the Next Level (B) case study. Ziprealty B5705 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats zipRealty: Leading a Start-up to the Next Level (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study zipRealty: Leading a Start-up to the Next Level (B) are -
Consumer confidence and its impact on Ziprealty B5705 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.
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 Ziprealty B5705 business can come under increasing regulations regarding data privacy, data security, etc.
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. Ziprealty B5705 needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Ziprealty B5705 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. Ziprealty B5705 can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Shortening product life cycle
– it is one of the major threat that Ziprealty B5705 is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Ziprealty B5705 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Ziprealty B5705.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study zipRealty: Leading a Start-up to the Next Level (B), Ziprealty B5705 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 .
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. Ziprealty B5705 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ziprealty B5705 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 zipRealty: Leading a Start-up to the Next Level (B) .
Increasing wage structure of Ziprealty B5705
– 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 Ziprealty B5705.
Weighted SWOT Analysis of zipRealty: Leading a Start-up to the Next Level (B) 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 zipRealty: Leading a Start-up to the Next Level (B) 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 zipRealty: Leading a Start-up to the Next Level (B) 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 zipRealty: Leading a Start-up to the Next Level (B) 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 zipRealty: Leading a Start-up to the Next Level (B) 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 Ziprealty B5705 needs to make to build a sustainable competitive advantage.
