ROQ.AD and the Ad-Tech Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of ROQ.AD and the Ad-Tech Industry
By August 2015, Berlin-based advertising technology venture Roq.ad had grown from a chance encounter between its two co-founders to become a revenue generating operation with 18 full-time employees in Germany and Poland -- in just 10 months. Their goal was to develop new cross-device, user-recognition technology that would enable advertisers to accurately target consumers across a range of devices such as personal computers and peripheral devices. Roq.ad's co-founders had decided from the beginning not to seek out venture capital and instead to retain tight control of their business. Given the lead time needed to develop technology, they had also decided to use an industry-standard agency model for generating revenues that would be used to fund the development of technology and the eventual launch of the program. As Roq.ad approached the end of its first year in business, the co-founders faced an important strategic challenge: How could they successfully transform the company from its initial mobile-advertising agency model to become Europe's number one provider of cross-device, user-recognition technology? Christopher Williams is affiliated with DURHAM UNIVERSITY. Umair Shafique is affiliated with Richard Ivey School of Business.
Swot Analysis of "ROQ.AD and the Ad-Tech Industry" written by Christopher Williams, Umair Shafique includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Roq.ad Technology facing as an external strategic factors. Some of the topics covered in ROQ.AD and the Ad-Tech Industry case study are - Strategic Management Strategies, Entrepreneurship, International business, IT, Marketing, Mergers & acquisitions and Strategy & Execution.
Some of the macro environment factors that can be used to understand the ROQ.AD and the Ad-Tech Industry casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%,
central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of ROQ.AD and the Ad-Tech Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ROQ.AD and the Ad-Tech Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Roq.ad Technology, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Roq.ad Technology 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 ROQ.AD and the Ad-Tech Industry can be done for the following purposes –
1. Strategic planning using facts provided in ROQ.AD and the Ad-Tech Industry case study
2. Improving business portfolio management of Roq.ad Technology
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 Roq.ad Technology
Strengths ROQ.AD and the Ad-Tech Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Roq.ad Technology in ROQ.AD and the Ad-Tech Industry Harvard Business Review case study are -
Learning organization
- Roq.ad Technology 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 Roq.ad Technology is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in ROQ.AD and the Ad-Tech Industry Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Roq.ad Technology has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Roq.ad Technology 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.
Diverse revenue streams
– Roq.ad Technology is present in almost all the verticals within the industry. This has provided firm in ROQ.AD and the Ad-Tech Industry 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.
Superior customer experience
– The customer experience strategy of Roq.ad Technology in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Strategy & Execution industry
– ROQ.AD and the Ad-Tech Industry firm has clearly differentiated products in the market place. This has enabled Roq.ad Technology to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Roq.ad Technology to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Roq.ad Technology is one of the leading recruiters in the industry. Managers in the ROQ.AD and the Ad-Tech Industry 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 Roq.ad Technology 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.
Analytics focus
– Roq.ad Technology 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 Christopher Williams, Umair Shafique 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.
Operational resilience
– The operational resilience strategy in the ROQ.AD and the Ad-Tech Industry 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.
Innovation driven organization
– Roq.ad Technology is one of the most innovative firm in sector. Manager in ROQ.AD and the Ad-Tech Industry Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Strategy & Execution field
– Roq.ad Technology 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 Roq.ad Technology in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Roq.ad Technology
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Roq.ad Technology does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses ROQ.AD and the Ad-Tech Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ROQ.AD and the Ad-Tech Industry are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study ROQ.AD and the Ad-Tech Industry, it seems that the employees of Roq.ad Technology 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Roq.ad Technology is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study ROQ.AD and the Ad-Tech Industry 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
– Roq.ad Technology 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 operating costs
– Compare to the competitors, firm in the HBR case study ROQ.AD and the Ad-Tech Industry 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 Roq.ad Technology 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study ROQ.AD and the Ad-Tech Industry, 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.
Interest costs
– Compare to the competition, Roq.ad Technology 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.
Increasing silos among functional specialists
– The organizational structure of Roq.ad Technology is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Roq.ad Technology needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Roq.ad Technology to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Roq.ad Technology 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 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 Roq.ad Technology supply chain. Even after few cautionary changes mentioned in the HBR case study - ROQ.AD and the Ad-Tech Industry, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Roq.ad Technology vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Roq.ad Technology products
– To increase the profitability and margins on the products, Roq.ad Technology needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Christopher Williams, Umair Shafique suggests that, Roq.ad Technology 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.
Opportunities ROQ.AD and the Ad-Tech Industry | 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 ROQ.AD and the Ad-Tech Industry are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Roq.ad Technology 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, ROQ.AD and the Ad-Tech Industry, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Roq.ad Technology 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. Roq.ad Technology 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.
Learning at scale
– Online learning technologies has now opened space for Roq.ad Technology 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.
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. Roq.ad Technology can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Roq.ad Technology in the consumer business. Now Roq.ad Technology can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Roq.ad Technology can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Roq.ad Technology 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.
Building a culture of innovation
– managers at Roq.ad Technology 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Roq.ad Technology 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.
Buying journey improvements
– Roq.ad Technology can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. ROQ.AD and the Ad-Tech Industry 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.
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. Roq.ad Technology can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Roq.ad Technology 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 ROQ.AD and the Ad-Tech Industry - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Roq.ad Technology to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Roq.ad Technology is facing challenges because of the dominance of functional experts in the organization. ROQ.AD and the Ad-Tech Industry 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.
Threats ROQ.AD and the Ad-Tech Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ROQ.AD and the Ad-Tech Industry are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Roq.ad Technology 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.
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. Roq.ad Technology can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Increasing wage structure of Roq.ad Technology
– 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 Roq.ad Technology.
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 Roq.ad Technology in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Roq.ad Technology 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 Roq.ad Technology is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Roq.ad Technology 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.
Environmental challenges
– Roq.ad Technology 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. Roq.ad Technology can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Roq.ad Technology 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 Roq.ad Technology with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Roq.ad Technology needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Consumer confidence and its impact on Roq.ad Technology 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.
Weighted SWOT Analysis of ROQ.AD and the Ad-Tech Industry 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 ROQ.AD and the Ad-Tech Industry 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 ROQ.AD and the Ad-Tech Industry 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 ROQ.AD and the Ad-Tech Industry 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 ROQ.AD and the Ad-Tech Industry 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 Roq.ad Technology needs to make to build a sustainable competitive advantage.
