Optimization and Expansion at OpenTable SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Optimization and Expansion at OpenTable
OpenTable considers adjustments to increase its benefits to merchants, including a novel payments service that lets customers skip the multi-step process of using a credit card.
Swot Analysis of "Optimization and Expansion at OpenTable" written by Benjamin Edelman, Karen L. Webster includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Opentable Skip facing as an external strategic factors. Some of the topics covered in Optimization and Expansion at OpenTable case study are - Strategic Management Strategies, IT, Marketing, Mobile, Pricing, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Optimization and Expansion at OpenTable casestudy better are - – digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, technology disruption, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, wage bills are increasing,
banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, etc
Introduction to SWOT Analysis of Optimization and Expansion at OpenTable
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Optimization and Expansion at OpenTable case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Opentable Skip, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Opentable Skip 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 Optimization and Expansion at OpenTable can be done for the following purposes –
1. Strategic planning using facts provided in Optimization and Expansion at OpenTable case study
2. Improving business portfolio management of Opentable Skip
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 Opentable Skip
Strengths Optimization and Expansion at OpenTable | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Opentable Skip in Optimization and Expansion at OpenTable Harvard Business Review case study are -
Training and development
– Opentable Skip has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Optimization and Expansion at OpenTable 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.
Innovation driven organization
– Opentable Skip is one of the most innovative firm in sector. Manager in Optimization and Expansion at OpenTable Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Opentable Skip 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 Opentable Skip is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Optimization and Expansion at OpenTable Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Opentable Skip is present in almost all the verticals within the industry. This has provided firm in Optimization and Expansion at OpenTable 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.
Low bargaining power of suppliers
– Suppliers of Opentable Skip in the sector have low bargaining power. Optimization and Expansion at OpenTable has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Opentable Skip to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Opentable Skip has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Opentable Skip to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Opentable Skip 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 Optimization and Expansion at OpenTable HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Opentable Skip digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Opentable Skip has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Superior customer experience
– The customer experience strategy of Opentable Skip in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Opentable Skip 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.
Ability to recruit top talent
– Opentable Skip is one of the leading recruiters in the industry. Managers in the Optimization and Expansion at OpenTable are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Optimization and Expansion at OpenTable 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 Optimization and Expansion at OpenTable | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Optimization and Expansion at OpenTable are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Opentable Skip is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Optimization and Expansion at OpenTable can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Opentable Skip needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Aligning sales with marketing
– It come across in the case study Optimization and Expansion at OpenTable 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 Optimization and Expansion at OpenTable can leverage the sales team experience to cultivate customer relationships as Opentable Skip is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Optimization and Expansion at OpenTable 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 Opentable Skip has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Opentable Skip is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Opentable Skip needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Opentable Skip to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Opentable Skip 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.
Products dominated business model
– Even though Opentable Skip 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 - Optimization and Expansion at OpenTable should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Optimization and Expansion at OpenTable 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 Opentable Skip 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Opentable Skip 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.
High cash cycle compare to competitors
Opentable Skip 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.
Interest costs
– Compare to the competition, Opentable Skip 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.
Opportunities Optimization and Expansion at OpenTable | 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 Optimization and Expansion at OpenTable are -
Building a culture of innovation
– managers at Opentable Skip 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.
Leveraging digital technologies
– Opentable Skip 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.
Buying journey improvements
– Opentable Skip can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Optimization and Expansion at OpenTable 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Opentable Skip can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Opentable Skip to increase its market reach. Opentable Skip 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.
Learning at scale
– Online learning technologies has now opened space for Opentable Skip 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.
Creating value in data economy
– The success of analytics program of Opentable Skip has opened avenues for new revenue streams for the organization in the industry. This can help Opentable Skip to build a more holistic ecosystem as suggested in the Optimization and Expansion at OpenTable case study. Opentable Skip can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Opentable Skip in the consumer business. Now Opentable Skip can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Opentable Skip 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.
Loyalty marketing
– Opentable Skip 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Opentable Skip 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Opentable Skip 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 Opentable Skip to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Opentable Skip 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, Optimization and Expansion at OpenTable, 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 Optimization and Expansion at OpenTable External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Optimization and Expansion at OpenTable are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Opentable Skip 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.
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.
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 Opentable Skip.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Opentable Skip 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 Opentable Skip 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 Opentable Skip business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Opentable Skip can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Opentable Skip 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.
Shortening product life cycle
– it is one of the major threat that Opentable Skip is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Opentable Skip 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 Optimization and Expansion at OpenTable .
Increasing wage structure of Opentable Skip
– 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 Opentable Skip.
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. Opentable Skip needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Optimization and Expansion at OpenTable, Opentable Skip 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 .
Weighted SWOT Analysis of Optimization and Expansion at OpenTable 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 Optimization and Expansion at OpenTable 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 Optimization and Expansion at OpenTable 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 Optimization and Expansion at OpenTable 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 Optimization and Expansion at OpenTable 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 Opentable Skip needs to make to build a sustainable competitive advantage.