Case Study Description of Salesbrain LLC - B2B Communications
In May 2010, the chief pain officer of SalesBrain, a neuroscience-based marketing research and coaching company located in California, United States, has been approached by the marketing head of Digital Technology International (DTI), a provider of technology solutions to the global publishing industry, based in Utah, United States, for advice. DTI has been struggling with communicating the core value proposition of its offerings to customers consisting of leading newspaper publishers. Its frontline people are delivering messages that are technical, jargon-filled and complex. Publisher-customers are unable to understand quickly how the technology solutions being offered by DTI can help them become competitive. The sales messages are also not consistent. Not all sales persons of DTI seem to be speaking the same language.SalesBrain is suggesting a three-step process wherein it will identify the pain points being experienced by the publisher-customers of DTI; create a compelling set of claims that DTI could offer about its technology products; and guide its frontline salespersons towards developing appropriate sales scripts that they could use with prospective clients. SalesBrain is deploying the cutting-edge tools of neuroscience marketing in each of the three processes.
Swot Analysis of "Salesbrain LLC - B2B Communications" written by Chandra Sekhar Ramasastry, Dante Pirouz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dti Salesbrain facing as an external strategic factors. Some of the topics covered in Salesbrain LLC - B2B Communications case study are - Strategic Management Strategies, Entrepreneurship, International business, Market research, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Salesbrain LLC - B2B Communications casestudy better are - – wage bills are increasing, there is backlash against globalization, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Salesbrain LLC - B2B Communications
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Salesbrain LLC - B2B Communications case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dti Salesbrain, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dti Salesbrain 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 Salesbrain LLC - B2B Communications can be done for the following purposes –
1. Strategic planning using facts provided in Salesbrain LLC - B2B Communications case study
2. Improving business portfolio management of Dti Salesbrain
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 Dti Salesbrain
Strengths Salesbrain LLC - B2B Communications | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dti Salesbrain in Salesbrain LLC - B2B Communications Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Dti Salesbrain in the sector have low bargaining power. Salesbrain LLC - B2B Communications has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Dti Salesbrain to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Strategy & Execution field
– Dti Salesbrain 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 Dti Salesbrain in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Salesbrain LLC - B2B Communications 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.
Cross disciplinary teams
– Horizontal connected teams at the Dti Salesbrain 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.
Learning organization
- Dti Salesbrain 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 Dti Salesbrain is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Salesbrain LLC - B2B Communications Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Dti Salesbrain has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dti Salesbrain 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.
Analytics focus
– Dti Salesbrain 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 Chandra Sekhar Ramasastry, Dante Pirouz 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Dti Salesbrain digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dti Salesbrain 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Salesbrain LLC - B2B Communications firm has clearly differentiated products in the market place. This has enabled Dti Salesbrain to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Dti Salesbrain to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Dti Salesbrain in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Dti Salesbrain is present in almost all the verticals within the industry. This has provided firm in Salesbrain LLC - B2B Communications 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.
High switching costs
– The high switching costs that Dti Salesbrain 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.
Weaknesses Salesbrain LLC - B2B Communications | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Salesbrain LLC - B2B Communications are -
Slow to strategic competitive environment developments
– As Salesbrain LLC - B2B Communications HBR case study mentions - Dti Salesbrain 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Salesbrain LLC - B2B Communications, in the dynamic environment Dti Salesbrain has struggled to respond to the nimble upstart competition. Dti Salesbrain has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Dti Salesbrain is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Dti Salesbrain needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Dti Salesbrain to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Dti Salesbrain 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Salesbrain LLC - B2B Communications 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 Dti Salesbrain 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Salesbrain LLC - B2B Communications, it seems that the employees of Dti Salesbrain 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, Dti Salesbrain 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 bargaining power of channel partners
– Because of the regulatory requirements, Chandra Sekhar Ramasastry, Dante Pirouz suggests that, Dti Salesbrain 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 Salesbrain LLC - B2B Communications, is just above the industry average. Dti Salesbrain 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.
Low market penetration in new markets
– Outside its home market of Dti Salesbrain, firm in the HBR case study Salesbrain LLC - B2B Communications needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Salesbrain LLC - B2B Communications, 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.
Opportunities Salesbrain LLC - B2B Communications | 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 Salesbrain LLC - B2B Communications are -
Manufacturing automation
– Dti Salesbrain 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.
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. Dti Salesbrain 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. Dti Salesbrain 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.
Using analytics as competitive advantage
– Dti Salesbrain 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 Salesbrain LLC - B2B Communications - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Dti Salesbrain to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Dti Salesbrain can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Salesbrain LLC - B2B Communications 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Dti Salesbrain 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, Salesbrain LLC - B2B Communications, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Dti Salesbrain to increase its market reach. Dti Salesbrain 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.
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. Dti Salesbrain can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Dti Salesbrain in the consumer business. Now Dti Salesbrain can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Dti Salesbrain 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. Dti Salesbrain can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Dti Salesbrain can use these opportunities to build new business models that can help the communities that Dti Salesbrain operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dti Salesbrain 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 Dti Salesbrain 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.
Threats Salesbrain LLC - B2B Communications External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Salesbrain LLC - B2B Communications 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. Dti Salesbrain 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
– Dti Salesbrain has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Dti Salesbrain 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.
Shortening product life cycle
– it is one of the major threat that Dti Salesbrain 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.
Stagnating economy with rate increase
– Dti Salesbrain 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.
High dependence on third party suppliers
– Dti Salesbrain 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.
Environmental challenges
– Dti Salesbrain 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. Dti Salesbrain can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Dti Salesbrain 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.
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 Dti Salesbrain business can come under increasing regulations regarding data privacy, data security, etc.
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 Dti Salesbrain.
Regulatory challenges
– Dti Salesbrain 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.
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. Dti Salesbrain needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Dti Salesbrain 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 Salesbrain LLC - B2B Communications 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 Salesbrain LLC - B2B Communications 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 Salesbrain LLC - B2B Communications 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 Salesbrain LLC - B2B Communications 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 Salesbrain LLC - B2B Communications 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 Dti Salesbrain needs to make to build a sustainable competitive advantage.