Case Study Description of WineMaster.com (A1): Confidential Instructions for WineMaster
A two-person negotiation exercise involving the potential sale of a small e-commerce company to a large company. The parties need to negotiate four issues: the number of shares in the deal, the vesting period for the shares, whether the seller will get a seat on the buyer's board, and the ownership of a potential liability against the seller.
Swot Analysis of "WineMaster.com (A1): Confidential Instructions for WineMaster" written by Guhan Subramanian includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Seller Winemaster facing as an external strategic factors. Some of the topics covered in WineMaster.com (A1): Confidential Instructions for WineMaster case study are - Strategic Management Strategies, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the WineMaster.com (A1): Confidential Instructions for WineMaster casestudy better are - – increasing commodity prices, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies,
increasing energy prices, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of WineMaster.com (A1): Confidential Instructions for WineMaster
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in WineMaster.com (A1): Confidential Instructions for WineMaster case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Seller Winemaster, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Seller Winemaster 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 WineMaster.com (A1): Confidential Instructions for WineMaster can be done for the following purposes –
1. Strategic planning using facts provided in WineMaster.com (A1): Confidential Instructions for WineMaster case study
2. Improving business portfolio management of Seller Winemaster
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 Seller Winemaster
Strengths WineMaster.com (A1): Confidential Instructions for WineMaster | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Seller Winemaster in WineMaster.com (A1): Confidential Instructions for WineMaster Harvard Business Review case study are -
Effective Research and Development (R&D)
– Seller Winemaster 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 WineMaster.com (A1): Confidential Instructions for WineMaster - 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
- Seller Winemaster 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 Seller Winemaster is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in WineMaster.com (A1): Confidential Instructions for WineMaster Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Seller Winemaster 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 WineMaster.com (A1): Confidential Instructions for WineMaster HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Seller Winemaster has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in WineMaster.com (A1): Confidential Instructions for WineMaster 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.
High brand equity
– Seller Winemaster has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Seller Winemaster to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Seller Winemaster 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 Strategy & Execution segment
- digital transformation varies from industry to industry. For Seller Winemaster digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Seller Winemaster 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.
Strong track record of project management
– Seller Winemaster is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Seller Winemaster 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 Guhan Subramanian 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.
Diverse revenue streams
– Seller Winemaster is present in almost all the verticals within the industry. This has provided firm in WineMaster.com (A1): Confidential Instructions for WineMaster 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.
Ability to lead change in Strategy & Execution field
– Seller Winemaster is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Seller Winemaster in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the WineMaster.com (A1): Confidential Instructions for WineMaster 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 WineMaster.com (A1): Confidential Instructions for WineMaster | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of WineMaster.com (A1): Confidential Instructions for WineMaster are -
Low market penetration in new markets
– Outside its home market of Seller Winemaster, firm in the HBR case study WineMaster.com (A1): Confidential Instructions for WineMaster needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Seller Winemaster products
– To increase the profitability and margins on the products, Seller Winemaster needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Seller Winemaster 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 decision making process
– As mentioned earlier in the report, Seller Winemaster 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. Seller Winemaster 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.
Increasing silos among functional specialists
– The organizational structure of Seller Winemaster is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Seller Winemaster needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Seller Winemaster to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study WineMaster.com (A1): Confidential Instructions for WineMaster 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 Seller Winemaster 's lucrative customers.
Slow to strategic competitive environment developments
– As WineMaster.com (A1): Confidential Instructions for WineMaster HBR case study mentions - Seller Winemaster 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study WineMaster.com (A1): Confidential Instructions for WineMaster, is just above the industry average. Seller Winemaster 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Seller Winemaster is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study WineMaster.com (A1): Confidential Instructions for WineMaster can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study WineMaster.com (A1): Confidential Instructions for WineMaster, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Workers concerns about automation
– As automation is fast increasing in the segment, Seller Winemaster 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.
Opportunities WineMaster.com (A1): Confidential Instructions for WineMaster | 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 WineMaster.com (A1): Confidential Instructions for WineMaster are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Seller Winemaster can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Seller Winemaster 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Seller Winemaster 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.
Using analytics as competitive advantage
– Seller Winemaster 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 WineMaster.com (A1): Confidential Instructions for WineMaster - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Seller Winemaster to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Seller Winemaster 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.
Manufacturing automation
– Seller Winemaster 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Seller Winemaster is facing challenges because of the dominance of functional experts in the organization. WineMaster.com (A1): Confidential Instructions for WineMaster 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.
Better consumer reach
– The expansion of the 5G network will help Seller Winemaster to increase its market reach. Seller Winemaster 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Seller Winemaster 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, WineMaster.com (A1): Confidential Instructions for WineMaster, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Seller Winemaster in the consumer business. Now Seller Winemaster can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Seller Winemaster can use these opportunities to build new business models that can help the communities that Seller Winemaster operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Learning at scale
– Online learning technologies has now opened space for Seller Winemaster 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.
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. Seller Winemaster can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats WineMaster.com (A1): Confidential Instructions for WineMaster External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study WineMaster.com (A1): Confidential Instructions for WineMaster are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Seller Winemaster with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Seller Winemaster has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Seller Winemaster needs to keep up with the evolution of technology in the Strategy & Execution 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study WineMaster.com (A1): Confidential Instructions for WineMaster, Seller Winemaster 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 .
Regulatory challenges
– Seller Winemaster 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 Seller Winemaster.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Seller Winemaster 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 WineMaster.com (A1): Confidential Instructions for WineMaster .
Stagnating economy with rate increase
– Seller Winemaster 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.
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. Seller Winemaster needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Seller Winemaster 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.
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. Seller Winemaster can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Seller Winemaster business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of WineMaster.com (A1): Confidential Instructions for WineMaster 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 WineMaster.com (A1): Confidential Instructions for WineMaster 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 WineMaster.com (A1): Confidential Instructions for WineMaster 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 WineMaster.com (A1): Confidential Instructions for WineMaster 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 WineMaster.com (A1): Confidential Instructions for WineMaster 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 Seller Winemaster needs to make to build a sustainable competitive advantage.