How to Manage an Aggressive Competitor SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of How to Manage an Aggressive Competitor
How can firms develop a competitive defense strategy that minimizes both the self-inflicted and competitor-inflicted damages of price competition? Before acting to defend market share or initiate price cuts, managers must anticipate the long-term strategic consequences and weigh them against the short-term benefits. A pricing decision should never be made simply to make the next sale or meet some short-term sales objective, but to enhance the firm's long-term ability to operate profitably. Pricing is like playing chess. Those who make moves one at a time--seeking to minimize immediate losses or exploit immediate opportunities--will invariably lose to those who envision the game a few moves ahead.
Authors :: George E. Cressman Jr., Thomas T. Nagle
Swot Analysis of "How to Manage an Aggressive Competitor" written by George E. Cressman Jr., Thomas T. Nagle includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Inflicted Term facing as an external strategic factors. Some of the topics covered in How to Manage an Aggressive Competitor case study are - Strategic Management Strategies, Marketing, Pricing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the How to Manage an Aggressive Competitor casestudy better are - – wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, challanges to central banks by blockchain based private currencies,
supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of How to Manage an Aggressive Competitor
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in How to Manage an Aggressive Competitor case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Inflicted Term, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Inflicted Term 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 How to Manage an Aggressive Competitor can be done for the following purposes –
1. Strategic planning using facts provided in How to Manage an Aggressive Competitor case study
2. Improving business portfolio management of Inflicted Term
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 Inflicted Term
Strengths How to Manage an Aggressive Competitor | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Inflicted Term in How to Manage an Aggressive Competitor Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– How to Manage an Aggressive Competitor firm has clearly differentiated products in the market place. This has enabled Inflicted Term to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Inflicted Term to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Inflicted Term is present in almost all the verticals within the industry. This has provided firm in How to Manage an Aggressive Competitor 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.
Ability to recruit top talent
– Inflicted Term is one of the leading recruiters in the industry. Managers in the How to Manage an Aggressive Competitor are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Inflicted Term 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.
Analytics focus
– Inflicted Term 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 George E. Cressman Jr., Thomas T. Nagle 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.
Organizational Resilience of Inflicted Term
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Inflicted Term does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Inflicted Term has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Inflicted Term to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Inflicted Term has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in How to Manage an Aggressive Competitor 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.
Highly skilled collaborators
– Inflicted Term 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 How to Manage an Aggressive Competitor HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Inflicted Term 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.
Innovation driven organization
– Inflicted Term is one of the most innovative firm in sector. Manager in How to Manage an Aggressive Competitor Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Inflicted Term 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 Inflicted Term is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in How to Manage an Aggressive Competitor Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses How to Manage an Aggressive Competitor | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of How to Manage an Aggressive Competitor are -
Slow decision making process
– As mentioned earlier in the report, Inflicted Term 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. Inflicted Term 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 How to Manage an Aggressive Competitor, it seems that the employees of Inflicted Term 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Inflicted Term is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study How to Manage an Aggressive Competitor can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Inflicted Term 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.
Lack of clear differentiation of Inflicted Term products
– To increase the profitability and margins on the products, Inflicted Term needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Inflicted Term 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.
High cash cycle compare to competitors
Inflicted Term 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 How to Manage an Aggressive Competitor, is just above the industry average. Inflicted Term needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High bargaining power of channel partners
– Because of the regulatory requirements, George E. Cressman Jr., Thomas T. Nagle suggests that, Inflicted Term 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 How to Manage an Aggressive Competitor 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 Inflicted Term has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Inflicted Term 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.
Opportunities How to Manage an Aggressive Competitor | 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 How to Manage an Aggressive Competitor are -
Developing new processes and practices
– Inflicted Term 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Inflicted Term can use these opportunities to build new business models that can help the communities that Inflicted Term operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Inflicted Term can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Inflicted Term 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.
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. Inflicted Term can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Inflicted Term has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Better consumer reach
– The expansion of the 5G network will help Inflicted Term to increase its market reach. Inflicted Term 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Inflicted Term is facing challenges because of the dominance of functional experts in the organization. How to Manage an Aggressive Competitor 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.
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 Inflicted Term in the consumer business. Now Inflicted Term can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Inflicted Term 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Inflicted Term can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Inflicted Term has opened avenues for new revenue streams for the organization in the industry. This can help Inflicted Term to build a more holistic ecosystem as suggested in the How to Manage an Aggressive Competitor case study. Inflicted Term 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 Inflicted Term to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Threats How to Manage an Aggressive Competitor External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study How to Manage an Aggressive Competitor 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 Inflicted Term.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study How to Manage an Aggressive Competitor, Inflicted Term 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 .
Shortening product life cycle
– it is one of the major threat that Inflicted Term 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 Inflicted Term business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Inflicted Term 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. Inflicted Term can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Inflicted Term 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 How to Manage an Aggressive Competitor .
High dependence on third party suppliers
– Inflicted Term high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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. Inflicted Term needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Regulatory challenges
– Inflicted Term 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.
Environmental challenges
– Inflicted Term 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. Inflicted Term can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Increasing wage structure of Inflicted Term
– 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 Inflicted Term.
Weighted SWOT Analysis of How to Manage an Aggressive Competitor 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 How to Manage an Aggressive Competitor 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 How to Manage an Aggressive Competitor 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 How to Manage an Aggressive Competitor 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 How to Manage an Aggressive Competitor 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 Inflicted Term needs to make to build a sustainable competitive advantage.