Full Psycle: Getting Somewhere By Going Nowhere (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Full Psycle: Getting Somewhere By Going Nowhere (A)
Paul Harmeling, an investment banker, pursues his passion for indoor cycling ("spinning") and launches the Full Psycle fitness studio. After the third location opens, it is clear that the early success can be attributed to exclusive technology rights and Harmeling's personality and enthusiasm. As Harmeling prepares to take the brand to a national level, the case explores the challenges of replicating this success across multiple locations. The case also examines the five expansion strategies available to Harmeling and the potential trade-offs each offers.
Swot Analysis of "Full Psycle: Getting Somewhere By Going Nowhere (A)" written by Elissa B Grossman, Susan S. Harmeling includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Harmeling Psycle facing as an external strategic factors. Some of the topics covered in Full Psycle: Getting Somewhere By Going Nowhere (A) case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Full Psycle: Getting Somewhere By Going Nowhere (A) casestudy better are - – challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, wage bills are increasing, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, increasing household debt because of falling income levels,
geopolitical disruptions, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Full Psycle: Getting Somewhere By Going Nowhere (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Full Psycle: Getting Somewhere By Going Nowhere (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Harmeling Psycle, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Harmeling Psycle 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 Full Psycle: Getting Somewhere By Going Nowhere (A) can be done for the following purposes –
1. Strategic planning using facts provided in Full Psycle: Getting Somewhere By Going Nowhere (A) case study
2. Improving business portfolio management of Harmeling Psycle
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 Harmeling Psycle
Strengths Full Psycle: Getting Somewhere By Going Nowhere (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Harmeling Psycle in Full Psycle: Getting Somewhere By Going Nowhere (A) Harvard Business Review case study are -
Diverse revenue streams
– Harmeling Psycle is present in almost all the verticals within the industry. This has provided firm in Full Psycle: Getting Somewhere By Going Nowhere (A) 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.
Innovation driven organization
– Harmeling Psycle is one of the most innovative firm in sector. Manager in Full Psycle: Getting Somewhere By Going Nowhere (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Strategy & Execution industry
– Full Psycle: Getting Somewhere By Going Nowhere (A) firm has clearly differentiated products in the market place. This has enabled Harmeling Psycle to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Harmeling Psycle to invest into research and development (R&D) and innovation.
Learning organization
- Harmeling Psycle 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 Harmeling Psycle is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Full Psycle: Getting Somewhere By Going Nowhere (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Harmeling Psycle is one of the leading recruiters in the industry. Managers in the Full Psycle: Getting Somewhere By Going Nowhere (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Harmeling Psycle 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 switching costs
– The high switching costs that Harmeling Psycle 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.
Superior customer experience
– The customer experience strategy of Harmeling Psycle in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Harmeling Psycle digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Harmeling Psycle 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.
Analytics focus
– Harmeling Psycle 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 Elissa B Grossman, Susan S. Harmeling 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.
Ability to lead change in Strategy & Execution field
– Harmeling Psycle 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 Harmeling Psycle in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Harmeling Psycle has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Harmeling Psycle to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Full Psycle: Getting Somewhere By Going Nowhere (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Full Psycle: Getting Somewhere By Going Nowhere (A) are -
Lack of clear differentiation of Harmeling Psycle products
– To increase the profitability and margins on the products, Harmeling Psycle needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Harmeling Psycle 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.
Slow decision making process
– As mentioned earlier in the report, Harmeling Psycle has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Harmeling Psycle even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Full Psycle: Getting Somewhere By Going Nowhere (A), it seems that the employees of Harmeling Psycle 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.
No frontier risks strategy
– After analyzing the HBR case study Full Psycle: Getting Somewhere By Going Nowhere (A), 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.
Need for greater diversity
– Harmeling Psycle 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.
Capital Spending Reduction
– Even during the low interest decade, Harmeling Psycle has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High bargaining power of channel partners
– Because of the regulatory requirements, Elissa B Grossman, Susan S. Harmeling suggests that, Harmeling Psycle 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 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 Harmeling Psycle supply chain. Even after few cautionary changes mentioned in the HBR case study - Full Psycle: Getting Somewhere By Going Nowhere (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Harmeling Psycle vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Harmeling Psycle 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Harmeling Psycle is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Full Psycle: Getting Somewhere By Going Nowhere (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Full Psycle: Getting Somewhere By Going Nowhere (A) | 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 Full Psycle: Getting Somewhere By Going Nowhere (A) are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Harmeling Psycle can use these opportunities to build new business models that can help the communities that Harmeling Psycle operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Leveraging digital technologies
– Harmeling Psycle 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.
Learning at scale
– Online learning technologies has now opened space for Harmeling Psycle 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. Harmeling Psycle 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, Harmeling Psycle is facing challenges because of the dominance of functional experts in the organization. Full Psycle: Getting Somewhere By Going Nowhere (A) 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
– Harmeling Psycle can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Full Psycle: Getting Somewhere By Going Nowhere (A) 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.
Better consumer reach
– The expansion of the 5G network will help Harmeling Psycle to increase its market reach. Harmeling Psycle 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Harmeling Psycle 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, Full Psycle: Getting Somewhere By Going Nowhere (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Harmeling Psycle 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.
Using analytics as competitive advantage
– Harmeling Psycle 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 Full Psycle: Getting Somewhere By Going Nowhere (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Harmeling Psycle to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Harmeling Psycle 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.
Creating value in data economy
– The success of analytics program of Harmeling Psycle has opened avenues for new revenue streams for the organization in the industry. This can help Harmeling Psycle to build a more holistic ecosystem as suggested in the Full Psycle: Getting Somewhere By Going Nowhere (A) case study. Harmeling Psycle can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Harmeling Psycle 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. Harmeling Psycle 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.
Threats Full Psycle: Getting Somewhere By Going Nowhere (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Full Psycle: Getting Somewhere By Going Nowhere (A) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Harmeling Psycle in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Harmeling Psycle can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Harmeling Psycle 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 Full Psycle: Getting Somewhere By Going Nowhere (A) .
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 Harmeling Psycle in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Harmeling Psycle
– 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 Harmeling Psycle.
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. Harmeling Psycle 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 Harmeling Psycle.
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. Harmeling Psycle 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Full Psycle: Getting Somewhere By Going Nowhere (A), Harmeling Psycle may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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.
Regulatory challenges
– Harmeling Psycle 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.
Technology acceleration in Forth Industrial Revolution
– Harmeling Psycle has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Harmeling Psycle 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.
Weighted SWOT Analysis of Full Psycle: Getting Somewhere By Going Nowhere (A) 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 Full Psycle: Getting Somewhere By Going Nowhere (A) 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 Full Psycle: Getting Somewhere By Going Nowhere (A) 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 Full Psycle: Getting Somewhere By Going Nowhere (A) 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 Full Psycle: Getting Somewhere By Going Nowhere (A) 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 Harmeling Psycle needs to make to build a sustainable competitive advantage.