Sarah Gets a Diamond SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Sarah Gets a Diamond
This is a Darden case study.Greg Mills describes his search for the perfect engagement ring which includes an analysis of the prices of 6,000 diamonds. An engineer, Greg hopes to impress Sarah Staggers by using regression to find an underpriced diamond. Students are asked to either select one of the 6,000 diamonds or provide point forecasts for prices of 3,142 diamonds in a hold-out sample. The instructor can use the actual prices of the held-out diamonds to evaluate student pricing models.
Swot Analysis of "Sarah Gets a Diamond" written by Phillip E. Pfeifer, Greg Mills includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Diamonds 6,000 facing as an external strategic factors. Some of the topics covered in Sarah Gets a Diamond case study are - Strategic Management Strategies, Financial analysis, Forecasting, Pricing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Sarah Gets a Diamond casestudy better are - – digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, technology disruption, increasing transportation and logistics costs, increasing energy prices, wage bills are increasing, there is backlash against globalization,
talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Sarah Gets a Diamond
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sarah Gets a Diamond case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Diamonds 6,000, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Diamonds 6,000 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 Sarah Gets a Diamond can be done for the following purposes –
1. Strategic planning using facts provided in Sarah Gets a Diamond case study
2. Improving business portfolio management of Diamonds 6,000
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 Diamonds 6,000
Strengths Sarah Gets a Diamond | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Diamonds 6,000 in Sarah Gets a Diamond Harvard Business Review case study are -
Learning organization
- Diamonds 6,000 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 Diamonds 6,000 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Sarah Gets a Diamond Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Diamonds 6,000 in the sector have low bargaining power. Sarah Gets a Diamond has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Diamonds 6,000 to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Diamonds 6,000 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 Sarah Gets a Diamond 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 Diamonds 6,000 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Sarah Gets a Diamond firm has clearly differentiated products in the market place. This has enabled Diamonds 6,000 to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Diamonds 6,000 to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Diamonds 6,000 is one of the leading recruiters in the industry. Managers in the Sarah Gets a Diamond are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Diamonds 6,000 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Diamonds 6,000 has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Diamonds 6,000 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Diamonds 6,000 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.
Ability to lead change in Strategy & Execution field
– Diamonds 6,000 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 Diamonds 6,000 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Diamonds 6,000 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Sarah Gets a Diamond 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.
Analytics focus
– Diamonds 6,000 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 Phillip E. Pfeifer, Greg Mills 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.
High brand equity
– Diamonds 6,000 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Diamonds 6,000 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Sarah Gets a Diamond | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sarah Gets a Diamond are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Sarah Gets a Diamond, in the dynamic environment Diamonds 6,000 has struggled to respond to the nimble upstart competition. Diamonds 6,000 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Diamonds 6,000 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 - Sarah Gets a Diamond should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Phillip E. Pfeifer, Greg Mills suggests that, Diamonds 6,000 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Sarah Gets a Diamond, it seems that the employees of Diamonds 6,000 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.
Low market penetration in new markets
– Outside its home market of Diamonds 6,000, firm in the HBR case study Sarah Gets a Diamond needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Diamonds 6,000 supply chain. Even after few cautionary changes mentioned in the HBR case study - Sarah Gets a Diamond, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Diamonds 6,000 vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Sarah Gets a Diamond 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 Diamonds 6,000 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Sarah Gets a Diamond that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Sarah Gets a Diamond can leverage the sales team experience to cultivate customer relationships as Diamonds 6,000 is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Diamonds 6,000 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Sarah Gets a Diamond can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Diamonds 6,000 is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Diamonds 6,000 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Diamonds 6,000 to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Diamonds 6,000 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.
Opportunities Sarah Gets a Diamond | 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 Sarah Gets a Diamond are -
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 Diamonds 6,000 in the consumer business. Now Diamonds 6,000 can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Diamonds 6,000 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Diamonds 6,000 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, Sarah Gets a Diamond, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Diamonds 6,000 is facing challenges because of the dominance of functional experts in the organization. Sarah Gets a Diamond case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Diamonds 6,000 has opened avenues for new revenue streams for the organization in the industry. This can help Diamonds 6,000 to build a more holistic ecosystem as suggested in the Sarah Gets a Diamond case study. Diamonds 6,000 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Diamonds 6,000 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 Sarah Gets a Diamond - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Diamonds 6,000 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Diamonds 6,000 can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Diamonds 6,000 can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Diamonds 6,000 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Diamonds 6,000 can use these opportunities to build new business models that can help the communities that Diamonds 6,000 operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Better consumer reach
– The expansion of the 5G network will help Diamonds 6,000 to increase its market reach. Diamonds 6,000 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.
Loyalty marketing
– Diamonds 6,000 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Diamonds 6,000 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.
Threats Sarah Gets a Diamond External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sarah Gets a Diamond are -
Consumer confidence and its impact on Diamonds 6,000 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.
High dependence on third party suppliers
– Diamonds 6,000 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Sarah Gets a Diamond, Diamonds 6,000 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 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.
Shortening product life cycle
– it is one of the major threat that Diamonds 6,000 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 Diamonds 6,000 business can come under increasing regulations regarding data privacy, data security, etc.
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. Diamonds 6,000 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, Diamonds 6,000 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 Sarah Gets a Diamond .
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. Diamonds 6,000 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
– Diamonds 6,000 has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Diamonds 6,000 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.
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 Diamonds 6,000 in the Strategy & Execution sector and impact the bottomline of the organization.
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. Diamonds 6,000 needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
Weighted SWOT Analysis of Sarah Gets a Diamond 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 Sarah Gets a Diamond 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 Sarah Gets a Diamond 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 Sarah Gets a Diamond 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 Sarah Gets a Diamond 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 Diamonds 6,000 needs to make to build a sustainable competitive advantage.
