Case Study Description of Focused e-Tail Measurement and Resource Management
Here is a framework, gleaned from a two-and-a-half-year study, for strategically measuring and evaluating the customer value proposition for anyone living in or entering the e-tail world. The first part provides a measurement structure to fence in the costs of going e-tail. The second identifies a reporting structure to focus succinctly on the financial outcome(s) of management's decisions. Examples are used to illustrate e-tail full product cost analysis and profit differential analysis. The numbers demonstrate that seemingly small changes in the revenue and direct cost per unit model can have a substantial impact on a product line's profitability. Activity-based costing (ABC) can play an essential strategic role in building and maintaining a successful e-tail business. Without an ABC measurement system, e-tailers will not be able to manage what they do not know.
Swot Analysis of "Focused e-Tail Measurement and Resource Management" written by Thomas L. Zeller, David R. Kublank includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tail Measurement facing as an external strategic factors. Some of the topics covered in Focused e-Tail Measurement and Resource Management case study are - Strategic Management Strategies, Financial analysis, IT and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Focused e-Tail Measurement and Resource Management casestudy better are - – there is increasing trade war between United States & China, central banks are concerned over increasing inflation, wage bills are increasing, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, technology disruption,
supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Focused e-Tail Measurement and Resource Management
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Focused e-Tail Measurement and Resource Management case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tail Measurement, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tail Measurement 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 Focused e-Tail Measurement and Resource Management can be done for the following purposes –
1. Strategic planning using facts provided in Focused e-Tail Measurement and Resource Management case study
2. Improving business portfolio management of Tail Measurement
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tail Measurement
Strengths Focused e-Tail Measurement and Resource Management | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tail Measurement in Focused e-Tail Measurement and Resource Management Harvard Business Review case study are -
Effective Research and Development (R&D)
– Tail Measurement 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 Focused e-Tail Measurement and Resource Management - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Focused e-Tail Measurement and Resource Management 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.
Cross disciplinary teams
– Horizontal connected teams at the Tail Measurement 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.
Training and development
– Tail Measurement has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Focused e-Tail Measurement and Resource Management 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
– Tail Measurement has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tail Measurement to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Tail Measurement 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 Tail Measurement is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Focused e-Tail Measurement and Resource Management Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Tail Measurement has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tail Measurement 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.
Superior customer experience
– The customer experience strategy of Tail Measurement in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Tail Measurement 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 Focused e-Tail Measurement and Resource Management HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Tail Measurement
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tail Measurement does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Tail Measurement is present in almost all the verticals within the industry. This has provided firm in Focused e-Tail Measurement and Resource Management 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 Finance & Accounting field
– Tail Measurement 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 Tail Measurement in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Focused e-Tail Measurement and Resource Management | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Focused e-Tail Measurement and Resource Management are -
Workers concerns about automation
– As automation is fast increasing in the segment, Tail Measurement 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.
Products dominated business model
– Even though Tail Measurement 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 - Focused e-Tail Measurement and Resource Management should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Tail Measurement 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Focused e-Tail Measurement and Resource Management, in the dynamic environment Tail Measurement has struggled to respond to the nimble upstart competition. Tail Measurement has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tail Measurement is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Focused e-Tail Measurement and Resource Management 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 bargaining power of channel partners
– Because of the regulatory requirements, Thomas L. Zeller, David R. Kublank suggests that, Tail Measurement 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.
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 Tail Measurement supply chain. Even after few cautionary changes mentioned in the HBR case study - Focused e-Tail Measurement and Resource Management, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tail Measurement vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Tail Measurement, firm in the HBR case study Focused e-Tail Measurement and Resource Management needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Tail Measurement is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Tail Measurement needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tail Measurement to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Focused e-Tail Measurement and Resource Management, it seems that the employees of Tail Measurement 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 Focused e-Tail Measurement and Resource Management 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 Tail Measurement 's lucrative customers.
Opportunities Focused e-Tail Measurement and Resource Management | 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 Focused e-Tail Measurement and Resource Management are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tail Measurement can use these opportunities to build new business models that can help the communities that Tail Measurement operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Tail Measurement 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. Tail Measurement 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.
Developing new processes and practices
– Tail Measurement can develop new processes and procedures in Finance & Accounting 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.
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 Tail Measurement 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.
Learning at scale
– Online learning technologies has now opened space for Tail Measurement 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tail Measurement 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.
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. Tail Measurement can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Tail Measurement can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Focused e-Tail Measurement and Resource Management 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.
Better consumer reach
– The expansion of the 5G network will help Tail Measurement to increase its market reach. Tail Measurement 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tail Measurement in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Tail Measurement can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tail Measurement 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 Tail Measurement 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, Tail Measurement 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, Focused e-Tail Measurement and Resource Management, 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 Focused e-Tail Measurement and Resource Management External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Focused e-Tail Measurement and Resource Management are -
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 Tail Measurement.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tail Measurement 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 Focused e-Tail Measurement and Resource Management .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tail Measurement in the Finance & Accounting industry. The Finance & Accounting industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Stagnating economy with rate increase
– Tail Measurement can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Tail Measurement 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.
High dependence on third party suppliers
– Tail Measurement 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.
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 Tail Measurement business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Tail Measurement 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 Finance & Accounting industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Focused e-Tail Measurement and Resource Management, Tail Measurement may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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.
Environmental challenges
– Tail Measurement 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. Tail Measurement can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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. Tail Measurement needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Tail Measurement in the Finance & Accounting sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Focused e-Tail Measurement and Resource Management 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 Focused e-Tail Measurement and Resource Management 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 Focused e-Tail Measurement and Resource Management 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 Focused e-Tail Measurement and Resource Management 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 Focused e-Tail Measurement and Resource Management 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 Tail Measurement needs to make to build a sustainable competitive advantage.
