Style Knows No Season: Moncler's Leap From Piste to Street SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Style Knows No Season: Moncler's Leap From Piste to Street
The case describes how Moncler, the 1950s and '60s leader in mountaineering jackets, transformed itself into a key player in the luxury goods market within the sub-sector of fashion apparel.It looks at the key decisions taken in the pre-IPO decade and at the dilemmas the company faces in 2014. How much should they extend their product lines? They had already ventured into accessories, footwear and eyewear, but there were fears that further diversification might dilute the brand. Furthermore, other luxury brands, attracted by Moncler's high growth rates and margins, also offered down jackets and skiwear. Finally, Moncler needed to consider how to best organize its international distribution.
Authors :: Fabrizio Ferraro, Alice Tozer, Andrea Baldo, Mawuse Ziegbe
Swot Analysis of "Style Knows No Season: Moncler's Leap From Piste to Street" written by Fabrizio Ferraro, Alice Tozer, Andrea Baldo, Mawuse Ziegbe includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Moncler Moncler's facing as an external strategic factors. Some of the topics covered in Style Knows No Season: Moncler's Leap From Piste to Street case study are - Strategic Management Strategies, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Style Knows No Season: Moncler's Leap From Piste to Street casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, wage bills are increasing, increasing transportation and logistics costs, central banks are concerned over increasing inflation, increasing commodity prices,
geopolitical disruptions, technology disruption, etc
Introduction to SWOT Analysis of Style Knows No Season: Moncler's Leap From Piste to Street
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Style Knows No Season: Moncler's Leap From Piste to Street case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Moncler Moncler's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Moncler Moncler's 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 Style Knows No Season: Moncler's Leap From Piste to Street can be done for the following purposes –
1. Strategic planning using facts provided in Style Knows No Season: Moncler's Leap From Piste to Street case study
2. Improving business portfolio management of Moncler Moncler's
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 Moncler Moncler's
Strengths Style Knows No Season: Moncler's Leap From Piste to Street | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Moncler Moncler's in Style Knows No Season: Moncler's Leap From Piste to Street Harvard Business Review case study are -
Organizational Resilience of Moncler Moncler's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Moncler Moncler's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Moncler Moncler's 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 Moncler Moncler's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Moncler Moncler's 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 Style Knows No Season: Moncler's Leap From Piste to Street HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Moncler Moncler's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Moncler Moncler's in the sector have low bargaining power. Style Knows No Season: Moncler's Leap From Piste to Street has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Moncler Moncler's to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Moncler Moncler's 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.
Training and development
– Moncler Moncler's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Style Knows No Season: Moncler's Leap From Piste to Street 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.
Successful track record of launching new products
– Moncler Moncler's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Moncler Moncler's 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 Style Knows No Season: Moncler's Leap From Piste to Street 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.
Analytics focus
– Moncler Moncler's 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 Fabrizio Ferraro, Alice Tozer, Andrea Baldo, Mawuse Ziegbe 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 Moncler Moncler's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Moncler Moncler's 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
– Style Knows No Season: Moncler's Leap From Piste to Street firm has clearly differentiated products in the market place. This has enabled Moncler Moncler's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Moncler Moncler's to invest into research and development (R&D) and innovation.
Weaknesses Style Knows No Season: Moncler's Leap From Piste to Street | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Style Knows No Season: Moncler's Leap From Piste to Street are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Moncler Moncler's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Style Knows No Season: Moncler's Leap From Piste to Street can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Moncler Moncler's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Moncler Moncler's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Style Knows No Season: Moncler's Leap From Piste to Street, in the dynamic environment Moncler Moncler's has struggled to respond to the nimble upstart competition. Moncler Moncler's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Style Knows No Season: Moncler's Leap From Piste to Street HBR case study mentions - Moncler Moncler's 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.
Increasing silos among functional specialists
– The organizational structure of Moncler Moncler's is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Moncler Moncler's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Moncler Moncler's to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Style Knows No Season: Moncler's Leap From Piste to Street, is just above the industry average. Moncler Moncler's needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High bargaining power of channel partners
– Because of the regulatory requirements, Fabrizio Ferraro, Alice Tozer, Andrea Baldo, Mawuse Ziegbe suggests that, Moncler Moncler's 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.
Low market penetration in new markets
– Outside its home market of Moncler Moncler's, firm in the HBR case study Style Knows No Season: Moncler's Leap From Piste to Street needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Style Knows No Season: Moncler's Leap From Piste to Street, it seems that the employees of Moncler Moncler's 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Style Knows No Season: Moncler's Leap From Piste to Street 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 Moncler Moncler's 's lucrative customers.
Opportunities Style Knows No Season: Moncler's Leap From Piste to Street | 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 Style Knows No Season: Moncler's Leap From Piste to Street are -
Using analytics as competitive advantage
– Moncler Moncler's 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 Style Knows No Season: Moncler's Leap From Piste to Street - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Moncler Moncler's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Moncler Moncler's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Moncler Moncler's is facing challenges because of the dominance of functional experts in the organization. Style Knows No Season: Moncler's Leap From Piste to Street 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.
Buying journey improvements
– Moncler Moncler's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Style Knows No Season: Moncler's Leap From Piste to Street 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.
Creating value in data economy
– The success of analytics program of Moncler Moncler's has opened avenues for new revenue streams for the organization in the industry. This can help Moncler Moncler's to build a more holistic ecosystem as suggested in the Style Knows No Season: Moncler's Leap From Piste to Street case study. Moncler Moncler's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Moncler Moncler's 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.
Loyalty marketing
– Moncler Moncler's 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.
Better consumer reach
– The expansion of the 5G network will help Moncler Moncler's to increase its market reach. Moncler Moncler's 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.
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. Moncler Moncler's 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. Moncler Moncler's 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.
Leveraging digital technologies
– Moncler Moncler's 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Moncler Moncler's can use these opportunities to build new business models that can help the communities that Moncler Moncler's operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Moncler Moncler's 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 Moncler Moncler's to hire the very best people irrespective of their geographical location.
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 Moncler Moncler's 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 Style Knows No Season: Moncler's Leap From Piste to Street External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Style Knows No Season: Moncler's Leap From Piste to Street are -
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. Moncler Moncler's 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.
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 Moncler Moncler's in the Strategy & Execution sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Moncler Moncler's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Moncler Moncler's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Moncler Moncler's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Moncler Moncler's.
Technology acceleration in Forth Industrial Revolution
– Moncler Moncler's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Moncler Moncler's 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.
Increasing wage structure of Moncler Moncler's
– 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 Moncler Moncler's.
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 Moncler Moncler's business can come under increasing regulations regarding data privacy, data security, etc.
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
– Moncler Moncler's 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Moncler Moncler's 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
– Moncler Moncler's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Weighted SWOT Analysis of Style Knows No Season: Moncler's Leap From Piste to Street 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 Style Knows No Season: Moncler's Leap From Piste to Street 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 Style Knows No Season: Moncler's Leap From Piste to Street 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 Style Knows No Season: Moncler's Leap From Piste to Street 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 Style Knows No Season: Moncler's Leap From Piste to Street 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 Moncler Moncler's needs to make to build a sustainable competitive advantage.
