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 - – supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy,
cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Deremate.com Latin in the sector have low bargaining power. DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Deremate.com Latin to manage not only supply disruptions but also source products at highly competitive prices.
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.
Learning organization
- Deremate.com Latin 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 Deremate.com Latin is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Strategy & Execution field
– Deremate.com Latin 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 Deremate.com Latin in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Deremate.com Latin is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
Analytics focus
– Deremate.com Latin 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 Michael G. Rukstad, David J. Collis 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.
Ability to recruit top talent
– Deremate.com Latin is one of the leading recruiters in the industry. Managers in the DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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 -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version, it seems that the employees of Deremate.com Latin 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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version, is just above the industry average. Deremate.com Latin 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.
High cash cycle compare to competitors
Deremate.com Latin 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.
Skills based hiring
– The stress on hiring functional specialists at Deremate.com Latin has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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.
No frontier risks strategy
– After analyzing the HBR case study DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version, 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.
Products dominated business model
– Even though Deremate.com Latin 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 - DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version should strive to include more intangible value offerings along with its core products and services.
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.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version 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 Deremate.com Latin 's lucrative customers.
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 -
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.
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.
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.
Building a culture of innovation
– managers at Deremate.com Latin 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.
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.
Leveraging digital technologies
– Deremate.com Latin 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.
Creating value in data economy
– The success of analytics program of Deremate.com Latin has opened avenues for new revenue streams for the organization in the industry. This can help Deremate.com Latin to build a more holistic ecosystem as suggested in the DeRemate.com: Building a Latin American Internet Auction Site, Spanish Version case study. Deremate.com Latin can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Deremate.com Latin 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 Deremate.com Latin to hire the very best people irrespective of their geographical location.
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.
Better consumer reach
– The expansion of the 5G network will help Deremate.com Latin to increase its market reach. Deremate.com Latin will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Learning at scale
– Online learning technologies has now opened space for 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.
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.
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.
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 -
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.
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.
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.
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.
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 Deremate.com Latin business can come under increasing regulations regarding data privacy, data security, 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.
Stagnating economy with rate increase
– Deremate.com Latin 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.
Increasing wage structure of Deremate.com Latin
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Deremate.com Latin.
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.
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.
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. Deremate.com Latin 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.
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.
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.