JCDecaux, 2016: Global Leader ... Again SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of JCDecaux, 2016: Global Leader ... Again
In 2016, JCDecaux was number one in the world in outdoor advertising. This was a far cry from the situation in 2003; at that time, JCDecaux had been unseated by Clear Channel from the number-one spot that it had held for decades, and it was fighting for second place with OUTFRONT (then owned by Viacom). Over the 12 intervening years, JCDecaux had doubled in size, building leadership positions in China, Japan, Latin America, Africa, and Russia, and in 2010, it had passed Clear Channel to lead the industry once more. Now, co-CEOs Jean-FranA?ois Decaux and Jean-Charles Decaux were looking for new ways and new places to grow. After the company overtook Clear Channel in 2010, Jean-FranA?ois had indicated that he believed that another doubling in size was feasible, but it would probably take a major acquisition to do so. And JCDecaux faced more pressing short-term issues. The contract for London bus shelters that the company had won with much fanfare in August 2015 was behind schedule. To make matters worse, the United Kingdom's June 2016 "Brexit" vote to leave the European Union cast a shadow over the project, and the markets reacted negatively. By the start of November, JCDecaux's share price had fallen 21% since the beginning of the year. Just what the economic uncertainty of Brexit would mean for global outdoor advertising in general, and U.K. outdoor advertising in particular, was not clear. Doubling in size in such an environment appeared a daunting task.
Swot Analysis of "JCDecaux, 2016: Global Leader ... Again" written by John R. Wells, Gabriel Ellsworth includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jcdecaux Jean facing as an external strategic factors. Some of the topics covered in JCDecaux, 2016: Global Leader ... Again case study are - Strategic Management Strategies, Business history, Business models, Competition, Customers, Design, Economy, Financial management, Globalization, Growth strategy, Human resource management, Joint ventures, Manufacturing, Mergers & acquisitions, Negotiations, Organizational structure, Performance measurement, Pricing, Product development, Public relations, Regulation, Technology, Work-life balance and Strategy & Execution.
Some of the macro environment factors that can be used to understand the JCDecaux, 2016: Global Leader ... Again casestudy better are - – geopolitical disruptions, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, increasing energy prices, increasing transportation and logistics costs, wage bills are increasing, technology disruption,
challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of JCDecaux, 2016: Global Leader ... Again
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in JCDecaux, 2016: Global Leader ... Again case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jcdecaux Jean, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jcdecaux Jean 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 JCDecaux, 2016: Global Leader ... Again can be done for the following purposes –
1. Strategic planning using facts provided in JCDecaux, 2016: Global Leader ... Again case study
2. Improving business portfolio management of Jcdecaux Jean
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 Jcdecaux Jean
Strengths JCDecaux, 2016: Global Leader ... Again | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jcdecaux Jean in JCDecaux, 2016: Global Leader ... Again Harvard Business Review case study are -
Innovation driven organization
– Jcdecaux Jean is one of the most innovative firm in sector. Manager in JCDecaux, 2016: Global Leader ... Again Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Jcdecaux Jean has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in JCDecaux, 2016: Global Leader ... Again 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.
Diverse revenue streams
– Jcdecaux Jean is present in almost all the verticals within the industry. This has provided firm in JCDecaux, 2016: Global Leader ... Again 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
– Jcdecaux Jean has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jcdecaux Jean 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.
Highly skilled collaborators
– Jcdecaux Jean 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 JCDecaux, 2016: Global Leader ... Again HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Jcdecaux Jean is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Jcdecaux Jean 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 John R. Wells, Gabriel Ellsworth 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.
Sustainable margins compare to other players in Strategy & Execution industry
– JCDecaux, 2016: Global Leader ... Again firm has clearly differentiated products in the market place. This has enabled Jcdecaux Jean to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Jcdecaux Jean to invest into research and development (R&D) and innovation.
High brand equity
– Jcdecaux Jean has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jcdecaux Jean to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Jcdecaux Jean 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.
Ability to recruit top talent
– Jcdecaux Jean is one of the leading recruiters in the industry. Managers in the JCDecaux, 2016: Global Leader ... Again are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Jcdecaux Jean 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.
Weaknesses JCDecaux, 2016: Global Leader ... Again | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of JCDecaux, 2016: Global Leader ... Again are -
Skills based hiring
– The stress on hiring functional specialists at Jcdecaux Jean 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.
Lack of clear differentiation of Jcdecaux Jean products
– To increase the profitability and margins on the products, Jcdecaux Jean needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the JCDecaux, 2016: Global Leader ... Again 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 Jcdecaux Jean has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study JCDecaux, 2016: Global Leader ... Again, 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.
Slow to strategic competitive environment developments
– As JCDecaux, 2016: Global Leader ... Again HBR case study mentions - Jcdecaux Jean 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.
High bargaining power of channel partners
– Because of the regulatory requirements, John R. Wells, Gabriel Ellsworth suggests that, Jcdecaux Jean 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 operating costs
– Compare to the competitors, firm in the HBR case study JCDecaux, 2016: Global Leader ... Again 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 Jcdecaux Jean 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Jcdecaux Jean, firm in the HBR case study JCDecaux, 2016: Global Leader ... Again needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Jcdecaux Jean is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Jcdecaux Jean needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jcdecaux Jean to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study JCDecaux, 2016: Global Leader ... Again, in the dynamic environment Jcdecaux Jean has struggled to respond to the nimble upstart competition. Jcdecaux Jean has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Jcdecaux Jean 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.
Opportunities JCDecaux, 2016: Global Leader ... Again | 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 JCDecaux, 2016: Global Leader ... Again are -
Manufacturing automation
– Jcdecaux Jean 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jcdecaux Jean 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 Jcdecaux Jean to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Jcdecaux Jean in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
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 Jcdecaux Jean in the consumer business. Now Jcdecaux Jean can target international markets with far fewer capital restrictions requirements than the existing system.
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. Jcdecaux Jean can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Jcdecaux Jean 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.
Using analytics as competitive advantage
– Jcdecaux Jean 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 JCDecaux, 2016: Global Leader ... Again - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jcdecaux Jean to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Jcdecaux Jean 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.
Leveraging digital technologies
– Jcdecaux Jean 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jcdecaux Jean 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.
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. Jcdecaux Jean 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. Jcdecaux Jean 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jcdecaux Jean can use these opportunities to build new business models that can help the communities that Jcdecaux Jean operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Creating value in data economy
– The success of analytics program of Jcdecaux Jean has opened avenues for new revenue streams for the organization in the industry. This can help Jcdecaux Jean to build a more holistic ecosystem as suggested in the JCDecaux, 2016: Global Leader ... Again case study. Jcdecaux Jean can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats JCDecaux, 2016: Global Leader ... Again External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study JCDecaux, 2016: Global Leader ... Again 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. Jcdecaux Jean can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Jcdecaux Jean
– 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 Jcdecaux Jean.
Environmental challenges
– Jcdecaux Jean 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. Jcdecaux Jean can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
High dependence on third party suppliers
– Jcdecaux Jean 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 Jcdecaux Jean business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Jcdecaux Jean 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.
Technology acceleration in Forth Industrial Revolution
– Jcdecaux Jean has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Jcdecaux Jean 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jcdecaux Jean 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.
Regulatory challenges
– Jcdecaux Jean 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.
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.
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 Jcdecaux Jean.
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.
Stagnating economy with rate increase
– Jcdecaux Jean 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.
Weighted SWOT Analysis of JCDecaux, 2016: Global Leader ... Again 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 JCDecaux, 2016: Global Leader ... Again 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 JCDecaux, 2016: Global Leader ... Again 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 JCDecaux, 2016: Global Leader ... Again 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 JCDecaux, 2016: Global Leader ... Again 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 Jcdecaux Jean needs to make to build a sustainable competitive advantage.
