DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version
Analyzes the strategic decision-making process in terms of market forces and short-term growth for an online trading community site in Latin America. A major competitor to E-bay, DeRemate.com is contemplating expansion throughout Latin America.
Swot Analysis of "DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version" written by Michael G. Rukstad, David J. Collis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Deremate.com Latin facing as an external strategic factors. Some of the topics covered in DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version case study are - Strategic Management Strategies, Negotiations, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version casestudy better are - – increasing commodity prices, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, technology disruption,
there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Deremate.com Latin, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Deremate.com Latin 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 DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version case study
2. Improving business portfolio management of Deremate.com Latin
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 Deremate.com Latin
Strengths DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Deremate.com Latin in DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version Harvard Business Review case study are -
Effective Research and Development (R&D)
– Deremate.com Latin 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 DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Deremate.com Latin has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Deremate.com Latin to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Deremate.com Latin digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Deremate.com Latin 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.
Innovation driven organization
– Deremate.com Latin is one of the most innovative firm in sector. Manager in DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version 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.
Training and development
– Deremate.com Latin has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version 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.
Highly skilled collaborators
– Deremate.com Latin 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 DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Deremate.com Latin 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.
Successful track record of launching new products
– Deremate.com Latin has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Deremate.com Latin 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.
Sustainable margins compare to other players in Strategy & Execution industry
– DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version firm has clearly differentiated products in the market place. This has enabled Deremate.com Latin to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Deremate.com Latin to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Deremate.com Latin 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.
Organizational Resilience of Deremate.com Latin
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Deremate.com Latin does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version are -
Slow decision making process
– As mentioned earlier in the report, Deremate.com Latin 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. Deremate.com Latin 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Deremate.com Latin is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Deremate.com Latin 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version 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 Deremate.com Latin has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Deremate.com Latin, firm in the HBR case study DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Deremate.com Latin is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Deremate.com Latin needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Deremate.com Latin to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Deremate.com Latin 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.
Slow to strategic competitive environment developments
– As DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version HBR case study mentions - Deremate.com Latin 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.
Aligning sales with marketing
– It come across in the case study DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version 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 DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version can leverage the sales team experience to cultivate customer relationships as Deremate.com Latin is planning to shift buying processes online.
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 Deremate.com Latin supply chain. Even after few cautionary changes mentioned in the HBR case study - DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Deremate.com Latin vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Deremate.com Latin products
– To increase the profitability and margins on the products, Deremate.com Latin needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version | 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 DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version are -
Buying journey improvements
– Deremate.com Latin can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version 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.
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 Deremate.com Latin 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Deremate.com Latin 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. Deremate.com Latin 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.
Manufacturing automation
– Deremate.com Latin 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Deremate.com Latin can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Deremate.com Latin in the consumer business. Now Deremate.com Latin can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Deremate.com Latin is facing challenges because of the dominance of functional experts in the organization. DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version 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, Deremate.com Latin 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, DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Deremate.com Latin 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 DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Deremate.com Latin to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Deremate.com Latin 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.
Loyalty marketing
– Deremate.com Latin 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.
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. Deremate.com Latin can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Deremate.com Latin can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version are -
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. Deremate.com Latin can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Deremate.com Latin needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Deremate.com Latin 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.
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 Deremate.com Latin.
Regulatory challenges
– Deremate.com Latin 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.
Environmental challenges
– Deremate.com Latin 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. Deremate.com Latin can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Deremate.com Latin in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Deremate.com Latin is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Deremate.com Latin 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.
Technology acceleration in Forth Industrial Revolution
– Deremate.com Latin has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Deremate.com Latin 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.
Consumer confidence and its impact on Deremate.com Latin 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version, Deremate.com Latin 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 DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version 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 DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version 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 DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version 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 DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version 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 DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version 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 Deremate.com Latin needs to make to build a sustainable competitive advantage.
