Case Study Description of Scripps Networks' Integration of Recipezaar
In July 2007, Scripps Networks acquired Recipezaar, a user-generated recipe and cooking Website with a captive community of 2.3 million visitors. By September, Deanna Brown, president of Scripps Networks Digital, grappled with how to best integrate the recent acquisition into Scripps Networks Digital and its affiliated Website, FoodNetwork.com. Should monetization efforts trump the interests and aesthetic tastes of Recipezaar's members? Would restructuring the Recipezaar team dampen the enthusiasm of its five crucial employees and adversely affect the community they had built? What effect would a rebranding have on the community at large?
Swot Analysis of "Scripps Networks' Integration of Recipezaar" written by Ava Seave, Carla Graubard includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Scripps Recipezaar facing as an external strategic factors. Some of the topics covered in Scripps Networks' Integration of Recipezaar case study are - Strategic Management Strategies, Growth strategy, Mergers & acquisitions, Social platforms and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Scripps Networks' Integration of Recipezaar casestudy better are - – geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google,
increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Scripps Networks' Integration of Recipezaar
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Scripps Networks' Integration of Recipezaar case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Scripps Recipezaar, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Scripps Recipezaar 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 Scripps Networks' Integration of Recipezaar can be done for the following purposes –
1. Strategic planning using facts provided in Scripps Networks' Integration of Recipezaar case study
2. Improving business portfolio management of Scripps Recipezaar
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 Scripps Recipezaar
Strengths Scripps Networks' Integration of Recipezaar | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Scripps Recipezaar in Scripps Networks' Integration of Recipezaar Harvard Business Review case study are -
High brand equity
– Scripps Recipezaar has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Scripps Recipezaar to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Scripps Recipezaar is one of the leading recruiters in the industry. Managers in the Scripps Networks' Integration of Recipezaar 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
– Scripps Recipezaar has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Scripps Recipezaar 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.
Innovation driven organization
– Scripps Recipezaar is one of the most innovative firm in sector. Manager in Scripps Networks' Integration of Recipezaar Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Scripps Recipezaar digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Scripps Recipezaar 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 Scripps Recipezaar in the sector have low bargaining power. Scripps Networks' Integration of Recipezaar has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Scripps Recipezaar to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Scripps Recipezaar has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Scripps Networks' Integration of Recipezaar 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)
– Scripps Recipezaar 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 Scripps Networks' Integration of Recipezaar - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Scripps Recipezaar 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 Scripps Networks' Integration of Recipezaar HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Scripps Recipezaar 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 Scripps Recipezaar is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Scripps Networks' Integration of Recipezaar Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Scripps Recipezaar is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Scripps Recipezaar 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 Ava Seave, Carla Graubard can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses Scripps Networks' Integration of Recipezaar | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Scripps Networks' Integration of Recipezaar are -
Products dominated business model
– Even though Scripps Recipezaar 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 - Scripps Networks' Integration of Recipezaar should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Scripps Networks' Integration of Recipezaar, it seems that the employees of Scripps Recipezaar 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.
Need for greater diversity
– Scripps Recipezaar 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.
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 Scripps Recipezaar supply chain. Even after few cautionary changes mentioned in the HBR case study - Scripps Networks' Integration of Recipezaar, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Scripps Recipezaar vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Scripps Recipezaar 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, Scripps Recipezaar is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Scripps Networks' Integration of Recipezaar can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Scripps Networks' Integration of Recipezaar, is just above the industry average. Scripps Recipezaar 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.
Capital Spending Reduction
– Even during the low interest decade, Scripps Recipezaar 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 operating costs
– Compare to the competitors, firm in the HBR case study Scripps Networks' Integration of Recipezaar 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 Scripps Recipezaar 's lucrative customers.
Slow to strategic competitive environment developments
– As Scripps Networks' Integration of Recipezaar HBR case study mentions - Scripps Recipezaar takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Scripps Recipezaar is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Scripps Recipezaar needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Scripps Recipezaar to focus more on services rather than just following the product oriented approach.
Opportunities Scripps Networks' Integration of Recipezaar | 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 Scripps Networks' Integration of Recipezaar are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Scripps Recipezaar 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, Scripps Networks' Integration of Recipezaar, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Scripps Recipezaar 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Scripps Recipezaar 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 Scripps Recipezaar to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Scripps Recipezaar 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.
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. Scripps Recipezaar can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Scripps Recipezaar in the consumer business. Now Scripps Recipezaar can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Scripps Recipezaar can use these opportunities to build new business models that can help the communities that Scripps Recipezaar operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Scripps Recipezaar can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Scripps Recipezaar 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.
Manufacturing automation
– Scripps Recipezaar 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.
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 Scripps Recipezaar 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.
Better consumer reach
– The expansion of the 5G network will help Scripps Recipezaar to increase its market reach. Scripps Recipezaar 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, Scripps Recipezaar is facing challenges because of the dominance of functional experts in the organization. Scripps Networks' Integration of Recipezaar 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.
Threats Scripps Networks' Integration of Recipezaar External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Scripps Networks' Integration of Recipezaar are -
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 Scripps Recipezaar in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Scripps Recipezaar 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 Scripps Networks' Integration of Recipezaar .
Regulatory challenges
– Scripps Recipezaar needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Scripps Recipezaar with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Scripps Recipezaar is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Scripps Recipezaar
– 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 Scripps Recipezaar.
Environmental challenges
– Scripps Recipezaar 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. Scripps Recipezaar can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Scripps Networks' Integration of Recipezaar, Scripps Recipezaar 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 .
Consumer confidence and its impact on Scripps Recipezaar 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.
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. Scripps Recipezaar 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.
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 Scripps Recipezaar.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Scripps Recipezaar 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.
Stagnating economy with rate increase
– Scripps Recipezaar 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.
Weighted SWOT Analysis of Scripps Networks' Integration of Recipezaar 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 Scripps Networks' Integration of Recipezaar 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 Scripps Networks' Integration of Recipezaar 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 Scripps Networks' Integration of Recipezaar 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 Scripps Networks' Integration of Recipezaar 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 Scripps Recipezaar needs to make to build a sustainable competitive advantage.