Joyus - Strategic Decisions in the Online Video Shopping Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Joyus - Strategic Decisions in the Online Video Shopping Market
Joyus is an ambitious and high-potential company just transitioning out of start-up mode. After three years operating in the growing online video shopping marketplace, all the while developing new technology, business partnerships, and fundraising, Joyus is positioning itself for the next level. The company's goal is to become the dominant player in the rapidly developing video-based ecommerce marketplace. The chief executive officer and her management team need to analyze and evaluate the company's strengths and weaknesses and decide on the strategic direction of the company.
Swot Analysis of "Joyus - Strategic Decisions in the Online Video Shopping Market" written by Matthew Wong, Darren Meister includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Joyus Video facing as an external strategic factors. Some of the topics covered in Joyus - Strategic Decisions in the Online Video Shopping Market case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Joyus - Strategic Decisions in the Online Video Shopping Market casestudy better are - – talent flight as more people leaving formal jobs, increasing energy prices, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google,
increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Joyus - Strategic Decisions in the Online Video Shopping Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Joyus - Strategic Decisions in the Online Video Shopping Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Joyus Video, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Joyus Video 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 Joyus - Strategic Decisions in the Online Video Shopping Market can be done for the following purposes –
1. Strategic planning using facts provided in Joyus - Strategic Decisions in the Online Video Shopping Market case study
2. Improving business portfolio management of Joyus Video
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 Joyus Video
Strengths Joyus - Strategic Decisions in the Online Video Shopping Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Joyus Video in Joyus - Strategic Decisions in the Online Video Shopping Market Harvard Business Review case study are -
Innovation driven organization
– Joyus Video is one of the most innovative firm in sector. Manager in Joyus - Strategic Decisions in the Online Video Shopping Market Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Joyus Video is one of the leading recruiters in the industry. Managers in the Joyus - Strategic Decisions in the Online Video Shopping Market are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Joyus Video in the sector have low bargaining power. Joyus - Strategic Decisions in the Online Video Shopping Market has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Joyus Video to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Joyus Video
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Joyus Video does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– Joyus - Strategic Decisions in the Online Video Shopping Market firm has clearly differentiated products in the market place. This has enabled Joyus Video to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Joyus Video to invest into research and development (R&D) and innovation.
Learning organization
- Joyus Video 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 Joyus Video is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Joyus - Strategic Decisions in the Online Video Shopping Market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Joyus Video 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 Joyus - Strategic Decisions in the Online Video Shopping Market - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Joyus Video 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.
High switching costs
– The high switching costs that Joyus Video 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.
Successful track record of launching new products
– Joyus Video has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Joyus Video 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.
Operational resilience
– The operational resilience strategy in the Joyus - Strategic Decisions in the Online Video Shopping Market 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Joyus Video digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Joyus Video 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.
Weaknesses Joyus - Strategic Decisions in the Online Video Shopping Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Joyus - Strategic Decisions in the Online Video Shopping Market are -
Skills based hiring
– The stress on hiring functional specialists at Joyus Video 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Joyus - Strategic Decisions in the Online Video Shopping Market 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 Joyus Video 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Joyus - Strategic Decisions in the Online Video Shopping Market 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 Joyus - Strategic Decisions in the Online Video Shopping Market can leverage the sales team experience to cultivate customer relationships as Joyus Video is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Matthew Wong, Darren Meister suggests that, Joyus Video 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Joyus - Strategic Decisions in the Online Video Shopping Market, is just above the industry average. Joyus Video 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.
Slow decision making process
– As mentioned earlier in the report, Joyus Video 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. Joyus Video 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.
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 Joyus Video supply chain. Even after few cautionary changes mentioned in the HBR case study - Joyus - Strategic Decisions in the Online Video Shopping Market, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Joyus Video vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Joyus - Strategic Decisions in the Online Video Shopping Market, it seems that the employees of Joyus Video 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.
Interest costs
– Compare to the competition, Joyus Video 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Joyus - Strategic Decisions in the Online Video Shopping Market 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 Joyus Video has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Joyus - Strategic Decisions in the Online Video Shopping Market HBR case study mentions - Joyus Video 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.
Opportunities Joyus - Strategic Decisions in the Online Video Shopping Market | 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 Joyus - Strategic Decisions in the Online Video Shopping Market are -
Leveraging digital technologies
– Joyus Video 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.
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 Joyus Video in the consumer business. Now Joyus Video can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Joyus Video can use these opportunities to build new business models that can help the communities that Joyus Video operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Learning at scale
– Online learning technologies has now opened space for Joyus Video 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.
Buying journey improvements
– Joyus Video can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Joyus - Strategic Decisions in the Online Video Shopping Market 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 Joyus Video to increase its market reach. Joyus Video 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.
Creating value in data economy
– The success of analytics program of Joyus Video has opened avenues for new revenue streams for the organization in the industry. This can help Joyus Video to build a more holistic ecosystem as suggested in the Joyus - Strategic Decisions in the Online Video Shopping Market case study. Joyus Video can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Joyus Video 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.
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 Joyus Video 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Joyus Video 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, Joyus - Strategic Decisions in the Online Video Shopping Market, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Joyus Video 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Joyus Video is facing challenges because of the dominance of functional experts in the organization. Joyus - Strategic Decisions in the Online Video Shopping Market 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.
Developing new processes and practices
– Joyus Video 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.
Threats Joyus - Strategic Decisions in the Online Video Shopping Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Joyus - Strategic Decisions in the Online Video Shopping Market are -
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 Joyus Video in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Joyus Video 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.
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 Joyus Video.
Environmental challenges
– Joyus Video 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. Joyus Video can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Regulatory challenges
– Joyus Video 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.
Shortening product life cycle
– it is one of the major threat that Joyus Video is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Joyus Video in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Joyus Video 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 Joyus - Strategic Decisions in the Online Video Shopping Market .
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. Joyus Video can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Joyus Video has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Joyus Video 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.
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 Joyus Video business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Joyus Video with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Joyus - Strategic Decisions in the Online Video Shopping Market 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 Joyus - Strategic Decisions in the Online Video Shopping Market 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 Joyus - Strategic Decisions in the Online Video Shopping Market 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 Joyus - Strategic Decisions in the Online Video Shopping Market 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 Joyus - Strategic Decisions in the Online Video Shopping Market 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 Joyus Video needs to make to build a sustainable competitive advantage.