Case Study Description of Mekanism: Engineering Viral Marketing
To maximize their effectiveness, color cases should be printed in color.The Mekanism case introduces students to a digital media production company specialized in creating viral marketing campaigns for advertising agencies and their clients (e.g., Microsoft, AXE, eBay, Toyota, etc.). Mekanism has grown tremendously from 2007 to 2010 in part due to the rise of viral marketing as a promising promotion tool for advertisers to reach and engage with consumers cheaply and quickly via word-of-mouth. Mekanism's president is contemplating expanding its services to other advertising content and media (e.g., televison, print, online) in effect becoming a full-service ad agency. This case is intended to discuss whether Mekanism should 'evolve' into an ad agency or keep focused on producing and distributing viral marketing content.
Swot Analysis of "Mekanism: Engineering Viral Marketing" written by Thales S. Teixeira, Alison Caverly includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mekanism Viral facing as an external strategic factors. Some of the topics covered in Mekanism: Engineering Viral Marketing case study are - Strategic Management Strategies, Corporate communications, Disruptive innovation, Growth strategy, Marketing, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Mekanism: Engineering Viral Marketing casestudy better are - – cloud computing is disrupting traditional business models, geopolitical disruptions, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies,
digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Mekanism: Engineering Viral Marketing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mekanism: Engineering Viral Marketing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mekanism Viral, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mekanism Viral 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 Mekanism: Engineering Viral Marketing can be done for the following purposes –
1. Strategic planning using facts provided in Mekanism: Engineering Viral Marketing case study
2. Improving business portfolio management of Mekanism Viral
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 Mekanism Viral
Strengths Mekanism: Engineering Viral Marketing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mekanism Viral in Mekanism: Engineering Viral Marketing Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Mekanism Viral 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 Mekanism Viral 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.
Highly skilled collaborators
– Mekanism Viral 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 Mekanism: Engineering Viral Marketing HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Mekanism Viral in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Mekanism Viral
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mekanism Viral does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Mekanism Viral 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 Thales S. Teixeira, Alison Caverly 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.
Effective Research and Development (R&D)
– Mekanism Viral 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 Mekanism: Engineering Viral Marketing - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Mekanism Viral is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Mekanism Viral has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mekanism Viral to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– Mekanism: Engineering Viral Marketing firm has clearly differentiated products in the market place. This has enabled Mekanism Viral to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Mekanism Viral to invest into research and development (R&D) and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Mekanism Viral digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mekanism Viral 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.
Learning organization
- Mekanism Viral 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 Mekanism Viral is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Mekanism: Engineering Viral Marketing Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Mekanism: Engineering Viral Marketing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mekanism: Engineering Viral Marketing are -
Lack of clear differentiation of Mekanism Viral products
– To increase the profitability and margins on the products, Mekanism Viral needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mekanism: Engineering Viral Marketing, in the dynamic environment Mekanism Viral has struggled to respond to the nimble upstart competition. Mekanism Viral has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Thales S. Teixeira, Alison Caverly suggests that, Mekanism Viral 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mekanism Viral is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mekanism: Engineering Viral Marketing can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Mekanism Viral supply chain. Even after few cautionary changes mentioned in the HBR case study - Mekanism: Engineering Viral Marketing, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mekanism Viral vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Mekanism Viral 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.
Slow to strategic competitive environment developments
– As Mekanism: Engineering Viral Marketing HBR case study mentions - Mekanism Viral 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.
Aligning sales with marketing
– It come across in the case study Mekanism: Engineering Viral Marketing 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 Mekanism: Engineering Viral Marketing can leverage the sales team experience to cultivate customer relationships as Mekanism Viral is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Mekanism: Engineering Viral Marketing 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 Mekanism Viral 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Mekanism Viral is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Mekanism Viral needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mekanism Viral to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Mekanism Viral 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.
Opportunities Mekanism: Engineering Viral Marketing | 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 Mekanism: Engineering Viral Marketing are -
Better consumer reach
– The expansion of the 5G network will help Mekanism Viral to increase its market reach. Mekanism Viral 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.
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 Mekanism Viral 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mekanism Viral in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mekanism Viral in the consumer business. Now Mekanism Viral can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Mekanism Viral 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 Mekanism: Engineering Viral Marketing - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mekanism Viral to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mekanism Viral can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mekanism Viral 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 Mekanism Viral to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mekanism Viral 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, Mekanism: Engineering Viral Marketing, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Mekanism Viral 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.
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. Mekanism Viral can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Mekanism Viral 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mekanism Viral is facing challenges because of the dominance of functional experts in the organization. Mekanism: Engineering Viral Marketing 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.
Creating value in data economy
– The success of analytics program of Mekanism Viral has opened avenues for new revenue streams for the organization in the industry. This can help Mekanism Viral to build a more holistic ecosystem as suggested in the Mekanism: Engineering Viral Marketing case study. Mekanism Viral can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Mekanism: Engineering Viral Marketing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mekanism: Engineering Viral Marketing are -
Environmental challenges
– Mekanism Viral 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. Mekanism Viral can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Mekanism Viral.
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. Mekanism Viral 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
– Mekanism Viral has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Mekanism Viral 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mekanism Viral 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 Mekanism: Engineering Viral Marketing .
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 Mekanism Viral in the Strategy & Execution sector and impact the bottomline 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 Mekanism Viral 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.
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. Mekanism Viral 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 Mekanism Viral 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.
Increasing wage structure of Mekanism Viral
– 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 Mekanism Viral.
Shortening product life cycle
– it is one of the major threat that Mekanism Viral is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Mekanism Viral business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Mekanism: Engineering Viral Marketing 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 Mekanism: Engineering Viral Marketing 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 Mekanism: Engineering Viral Marketing 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 Mekanism: Engineering Viral Marketing 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 Mekanism: Engineering Viral Marketing 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 Mekanism Viral needs to make to build a sustainable competitive advantage.
