Charlie Merrill and the Financial Supermarket Strategy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Charlie Merrill and the Financial Supermarket Strategy
Charles "Charlie" E. Merrill was a visionary who opened the door to investing for the masses in America. The "financial supermarket" strategy, which Merrill conceived in the late thirties, revolutionized the brokerage and financial services of his time and is widely recognized as one of the most important strategic innovations in the history of the financial sector. This case opens a window on the genesis of Merrill's strategic insight. It focuses especially on how Merrill came to identify the analogy (banking as supermarkets) that led him to see his industry through a very different lens than most of strategic leaders at competing firms.
Authors :: Giovanni Gavetti, Anoop Ramachandran Menon, Katherine Dowd
Swot Analysis of "Charlie Merrill and the Financial Supermarket Strategy" written by Giovanni Gavetti, Anoop Ramachandran Menon, Katherine Dowd includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Merrill Charlie facing as an external strategic factors. Some of the topics covered in Charlie Merrill and the Financial Supermarket Strategy case study are - Strategic Management Strategies, Creativity, Financial management, Financial markets, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Charlie Merrill and the Financial Supermarket Strategy casestudy better are - – supply chains are disrupted by pandemic , increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion,
talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Charlie Merrill and the Financial Supermarket Strategy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Charlie Merrill and the Financial Supermarket Strategy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Merrill Charlie, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Merrill Charlie 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 Charlie Merrill and the Financial Supermarket Strategy can be done for the following purposes –
1. Strategic planning using facts provided in Charlie Merrill and the Financial Supermarket Strategy case study
2. Improving business portfolio management of Merrill Charlie
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 Merrill Charlie
Strengths Charlie Merrill and the Financial Supermarket Strategy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Merrill Charlie in Charlie Merrill and the Financial Supermarket Strategy Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Merrill Charlie 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 Merrill Charlie digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Merrill Charlie 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.
Low bargaining power of suppliers
– Suppliers of Merrill Charlie in the sector have low bargaining power. Charlie Merrill and the Financial Supermarket Strategy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Merrill Charlie to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Merrill Charlie is one of the most innovative firm in sector. Manager in Charlie Merrill and the Financial Supermarket Strategy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Merrill Charlie is present in almost all the verticals within the industry. This has provided firm in Charlie Merrill and the Financial Supermarket Strategy 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.
Strong track record of project management
– Merrill Charlie is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Strategy & Execution field
– Merrill Charlie 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 Merrill Charlie in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Merrill Charlie 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 Giovanni Gavetti, Anoop Ramachandran Menon, Katherine Dowd 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.
Highly skilled collaborators
– Merrill Charlie 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 Charlie Merrill and the Financial Supermarket Strategy HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Merrill Charlie has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Charlie Merrill and the Financial Supermarket Strategy 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.
Effective Research and Development (R&D)
– Merrill Charlie 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 Charlie Merrill and the Financial Supermarket Strategy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Charlie Merrill and the Financial Supermarket Strategy firm has clearly differentiated products in the market place. This has enabled Merrill Charlie to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Merrill Charlie to invest into research and development (R&D) and innovation.
Weaknesses Charlie Merrill and the Financial Supermarket Strategy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Charlie Merrill and the Financial Supermarket Strategy are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Merrill Charlie is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Charlie Merrill and the Financial Supermarket Strategy 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 operating costs
– Compare to the competitors, firm in the HBR case study Charlie Merrill and the Financial Supermarket Strategy 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 Merrill Charlie 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Giovanni Gavetti, Anoop Ramachandran Menon, Katherine Dowd suggests that, Merrill Charlie 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.
Skills based hiring
– The stress on hiring functional specialists at Merrill Charlie 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.
Need for greater diversity
– Merrill Charlie 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.
Products dominated business model
– Even though Merrill Charlie has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Charlie Merrill and the Financial Supermarket Strategy should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Merrill Charlie products
– To increase the profitability and margins on the products, Merrill Charlie needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Merrill Charlie 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Charlie Merrill and the Financial Supermarket Strategy, is just above the industry average. Merrill Charlie 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Charlie Merrill and the Financial Supermarket Strategy, it seems that the employees of Merrill Charlie 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Charlie Merrill and the Financial Supermarket Strategy 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 Merrill Charlie has relatively successful track record of launching new products.
Opportunities Charlie Merrill and the Financial Supermarket Strategy | 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 Charlie Merrill and the Financial Supermarket Strategy are -
Better consumer reach
– The expansion of the 5G network will help Merrill Charlie to increase its market reach. Merrill Charlie 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Merrill Charlie 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 Merrill Charlie to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Merrill Charlie can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Charlie Merrill and the Financial Supermarket Strategy suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Merrill Charlie 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, Charlie Merrill and the Financial Supermarket Strategy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Merrill Charlie in the consumer business. Now Merrill Charlie can target international markets with far fewer capital restrictions requirements than the existing system.
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. Merrill Charlie can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Merrill Charlie can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Creating value in data economy
– The success of analytics program of Merrill Charlie has opened avenues for new revenue streams for the organization in the industry. This can help Merrill Charlie to build a more holistic ecosystem as suggested in the Charlie Merrill and the Financial Supermarket Strategy case study. Merrill Charlie can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Merrill Charlie 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.
Leveraging digital technologies
– Merrill Charlie 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.
Using analytics as competitive advantage
– Merrill Charlie 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 Charlie Merrill and the Financial Supermarket Strategy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Merrill Charlie 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. Merrill Charlie can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Merrill Charlie can use these opportunities to build new business models that can help the communities that Merrill Charlie operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats Charlie Merrill and the Financial Supermarket Strategy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Charlie Merrill and the Financial Supermarket Strategy are -
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Merrill Charlie with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Merrill Charlie needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Merrill Charlie needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Merrill Charlie 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. Merrill Charlie can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Merrill Charlie 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 Charlie Merrill and the Financial Supermarket Strategy .
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. Merrill Charlie can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Merrill Charlie business can come under increasing regulations regarding data privacy, data security, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Stagnating economy with rate increase
– Merrill Charlie 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.
Consumer confidence and its impact on Merrill Charlie 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Charlie Merrill and the Financial Supermarket Strategy, Merrill Charlie 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 .
Technology acceleration in Forth Industrial Revolution
– Merrill Charlie has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Merrill Charlie 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 Charlie Merrill and the Financial Supermarket Strategy 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 Charlie Merrill and the Financial Supermarket Strategy 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 Charlie Merrill and the Financial Supermarket Strategy 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 Charlie Merrill and the Financial Supermarket Strategy 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 Charlie Merrill and the Financial Supermarket Strategy 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 Merrill Charlie needs to make to build a sustainable competitive advantage.