Case Study Description of Sustaining Customer Centricity at Chateauform'
The ChA?teauform' case describes how Jacques Horovitz founded a unique concept in the saturated hotel and seminar market that existing hotel chains find difficult to copy and conquer. The case outlines why the new company has entered that market successfully and how Horovitz grew this concept by copying his success formula in other countries and for different target groups. Permanent questioning and reinvention were keys to the sustainability of ChA?teauform', which maintained the agility and nimbleness of a startup even though it had grown to a company with revenues exceeding a??100 million and almost 1,000 employees. Key to the success of the ChA?teauform' model are some very original solutions to classic supply chain management quagmires in the service industry. The case describes how Horovitz successfully managed this growth. It is a good illustration of how to implement a strategy built on customer centricity and customer intimacy. An interesting element of this case study is the emphasis on managing by values rather than rules and on realigning the whole value chain to make sure the value creation is indeed managed at the customer level, forcing a corporate structure that is very innovative.
Authors :: Benoit Leleux, Kurt Verweire, Marion Debruyne
Swot Analysis of "Sustaining Customer Centricity at Chateauform'" written by Benoit Leleux, Kurt Verweire, Marion Debruyne includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Horovitz Teauform facing as an external strategic factors. Some of the topics covered in Sustaining Customer Centricity at Chateauform' case study are - Strategic Management Strategies, Assessing performance, Corporate governance, Customers, Human resource management, Organizational culture, Strategy execution, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Sustaining Customer Centricity at Chateauform' casestudy better are - – increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, wage bills are increasing, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion,
digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Sustaining Customer Centricity at Chateauform'
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sustaining Customer Centricity at Chateauform' case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Horovitz Teauform, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Horovitz Teauform 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 Sustaining Customer Centricity at Chateauform' can be done for the following purposes –
1. Strategic planning using facts provided in Sustaining Customer Centricity at Chateauform' case study
2. Improving business portfolio management of Horovitz Teauform
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 Horovitz Teauform
Strengths Sustaining Customer Centricity at Chateauform' | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Horovitz Teauform in Sustaining Customer Centricity at Chateauform' Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Horovitz Teauform digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Horovitz Teauform 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Sustaining Customer Centricity at Chateauform' firm has clearly differentiated products in the market place. This has enabled Horovitz Teauform to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Horovitz Teauform to invest into research and development (R&D) and innovation.
Ability to lead change in Strategy & Execution field
– Horovitz Teauform 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 Horovitz Teauform 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 Sustaining Customer Centricity at Chateauform' 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.
Strong track record of project management
– Horovitz Teauform is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Horovitz Teauform is one of the leading recruiters in the industry. Managers in the Sustaining Customer Centricity at Chateauform' 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
– Horovitz Teauform is present in almost all the verticals within the industry. This has provided firm in Sustaining Customer Centricity at Chateauform' 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.
Successful track record of launching new products
– Horovitz Teauform has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Horovitz Teauform 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.
Organizational Resilience of Horovitz Teauform
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Horovitz Teauform does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Horovitz Teauform has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Sustaining Customer Centricity at Chateauform' 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
– Horovitz Teauform is one of the most innovative firm in sector. Manager in Sustaining Customer Centricity at Chateauform' Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Horovitz Teauform 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 Horovitz Teauform is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Sustaining Customer Centricity at Chateauform' Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Sustaining Customer Centricity at Chateauform' | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sustaining Customer Centricity at Chateauform' are -
No frontier risks strategy
– After analyzing the HBR case study Sustaining Customer Centricity at Chateauform', 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.
Lack of clear differentiation of Horovitz Teauform products
– To increase the profitability and margins on the products, Horovitz Teauform needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Sustaining Customer Centricity at Chateauform', it seems that the employees of Horovitz Teauform 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Sustaining Customer Centricity at Chateauform' 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 Horovitz Teauform 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Horovitz Teauform 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Sustaining Customer Centricity at Chateauform', is just above the industry average. Horovitz Teauform 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.
Need for greater diversity
– Horovitz Teauform 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 Sustaining Customer Centricity at Chateauform', in the dynamic environment Horovitz Teauform has struggled to respond to the nimble upstart competition. Horovitz Teauform has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Horovitz Teauform 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Sustaining Customer Centricity at Chateauform' 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 Horovitz Teauform has relatively successful track record of launching new products.
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 Horovitz Teauform supply chain. Even after few cautionary changes mentioned in the HBR case study - Sustaining Customer Centricity at Chateauform', it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Horovitz Teauform vulnerable to further global disruptions in South East Asia.
Opportunities Sustaining Customer Centricity at Chateauform' | 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 Sustaining Customer Centricity at Chateauform' are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Horovitz Teauform 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 Horovitz Teauform 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. Horovitz Teauform 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 Horovitz Teauform can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Horovitz Teauform can use these opportunities to build new business models that can help the communities that Horovitz Teauform operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Developing new processes and practices
– Horovitz Teauform 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.
Creating value in data economy
– The success of analytics program of Horovitz Teauform has opened avenues for new revenue streams for the organization in the industry. This can help Horovitz Teauform to build a more holistic ecosystem as suggested in the Sustaining Customer Centricity at Chateauform' case study. Horovitz Teauform can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Horovitz Teauform is facing challenges because of the dominance of functional experts in the organization. Sustaining Customer Centricity at Chateauform' 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Horovitz Teauform 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, Sustaining Customer Centricity at Chateauform', to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Horovitz Teauform to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Building a culture of innovation
– managers at Horovitz Teauform 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
– Horovitz Teauform 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.
Learning at scale
– Online learning technologies has now opened space for Horovitz Teauform 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.
Using analytics as competitive advantage
– Horovitz Teauform 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 Sustaining Customer Centricity at Chateauform' - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Horovitz Teauform to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Sustaining Customer Centricity at Chateauform' External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sustaining Customer Centricity at Chateauform' are -
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Horovitz Teauform 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Horovitz Teauform 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 Sustaining Customer Centricity at Chateauform' .
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.
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. Horovitz Teauform 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 Horovitz Teauform business can come under increasing regulations regarding data privacy, data security, etc.
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 Horovitz Teauform.
Technology acceleration in Forth Industrial Revolution
– Horovitz Teauform has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Horovitz Teauform 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.
Stagnating economy with rate increase
– Horovitz Teauform 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.
Shortening product life cycle
– it is one of the major threat that Horovitz Teauform is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Horovitz Teauform 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Horovitz Teauform with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Horovitz Teauform needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Sustaining Customer Centricity at Chateauform' 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 Sustaining Customer Centricity at Chateauform' 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 Sustaining Customer Centricity at Chateauform' 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 Sustaining Customer Centricity at Chateauform' 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 Sustaining Customer Centricity at Chateauform' 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 Horovitz Teauform needs to make to build a sustainable competitive advantage.