Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay
This note is designed to provide strategists with tools to perform two critical customer-related analyses: determining willingness to pay - the estimation of how much a given customer would be willing to pay for a particular product or service; and demand estimation - predicting the overall size of the market or segment which a company chooses to serve.
Swot Analysis of "Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay" written by David J. Collis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Estimation Pay facing as an external strategic factors. Some of the topics covered in Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay case study are - Strategic Management Strategies, Customers, Pricing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , increasing transportation and logistics costs,
increasing commodity prices, increasing energy prices, etc
Introduction to SWOT Analysis of Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Estimation Pay, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Estimation Pay 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 Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay can be done for the following purposes –
1. Strategic planning using facts provided in Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay case study
2. Improving business portfolio management of Estimation Pay
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 Estimation Pay
Strengths Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Estimation Pay in Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay Harvard Business Review case study are -
Innovation driven organization
– Estimation Pay is one of the most innovative firm in sector. Manager in Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Estimation Pay 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.
Ability to lead change in Strategy & Execution field
– Estimation Pay 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 Estimation Pay in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Estimation Pay in the sector have low bargaining power. Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Estimation Pay to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Estimation Pay digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Estimation Pay 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.
Diverse revenue streams
– Estimation Pay is present in almost all the verticals within the industry. This has provided firm in Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay 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.
Highly skilled collaborators
– Estimation Pay 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 Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Estimation Pay has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Estimation Pay to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Estimation Pay is one of the leading recruiters in the industry. Managers in the Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Estimation Pay has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay 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.
Superior customer experience
– The customer experience strategy of Estimation Pay in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Estimation Pay 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 David J. Collis 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.
Weaknesses Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay are -
High cash cycle compare to competitors
Estimation Pay 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.
Interest costs
– Compare to the competition, Estimation Pay 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.
Low market penetration in new markets
– Outside its home market of Estimation Pay, firm in the HBR case study Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Estimation Pay is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay 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 Estimation Pay supply chain. Even after few cautionary changes mentioned in the HBR case study - Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Estimation Pay vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay, it seems that the employees of Estimation Pay 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 Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay 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 Estimation Pay 's lucrative customers.
Lack of clear differentiation of Estimation Pay products
– To increase the profitability and margins on the products, Estimation Pay needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Estimation Pay 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 bargaining power of channel partners
– Because of the regulatory requirements, David J. Collis suggests that, Estimation Pay 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Estimation Pay has relatively successful track record of launching new products.
Opportunities Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay | 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 Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Estimation Pay can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Estimation Pay 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. Estimation Pay can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Estimation Pay 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.
Loyalty marketing
– Estimation Pay 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.
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 Estimation Pay in the consumer business. Now Estimation Pay can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Estimation Pay 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.
Better consumer reach
– The expansion of the 5G network will help Estimation Pay to increase its market reach. Estimation Pay will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Creating value in data economy
– The success of analytics program of Estimation Pay has opened avenues for new revenue streams for the organization in the industry. This can help Estimation Pay to build a more holistic ecosystem as suggested in the Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay case study. Estimation Pay can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Estimation Pay can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Estimation Pay 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. Estimation Pay 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Estimation Pay 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, Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Estimation Pay can use these opportunities to build new business models that can help the communities that Estimation Pay operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay are -
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 Estimation Pay.
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. Estimation Pay 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.
Technology acceleration in Forth Industrial Revolution
– Estimation Pay has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Estimation Pay 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.
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. Estimation Pay needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
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 Estimation Pay 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 Estimation Pay in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing wage structure of Estimation Pay
– 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 Estimation Pay.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Estimation Pay 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 Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay .
Regulatory challenges
– Estimation Pay 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Estimation Pay with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Estimation Pay 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. Estimation Pay can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Estimation Pay 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 Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay 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 Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay 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 Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay 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 Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay 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 Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay 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 Estimation Pay needs to make to build a sustainable competitive advantage.
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