Colorado Crush and the Arena Football League SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Colorado Crush and the Arena Football League
Details the formation of the Colorado Crush, a new AFL team co-owned by John Elway, Pat Bowlen (owner of the Denver Broncos), and Stan Kroenke (owner of the Pepsi Center). The AFL has been in existence since 1987, but only recently made a push to compete with more popular professional sports leagues by securing a national TV contract and expanding into larger markets. Commissioner Michael Baker took over in 1996 and made significant changes in the structure of the league, particularly with respect to its television contracts and financial incentives for NFL team owners to buy into the AFL. The case details the league's contract with NBC Sports, the Crush owners' decision to purchase the franchise, and how the syndicate operated. The Crush's first season was a record-breaking success off the field, but on the field, the team struggled to win games. Ends with the question of how to attack the 2004 season on and off the field.
Swot Analysis of "Colorado Crush and the Arena Football League" written by George Foster, Alicia Seiger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Afl Crush facing as an external strategic factors. Some of the topics covered in Colorado Crush and the Arena Football League case study are - Strategic Management Strategies, Negotiations, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Colorado Crush and the Arena Football League casestudy better are - – increasing government debt because of Covid-19 spendings, geopolitical disruptions, supply chains are disrupted by pandemic , increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs,
there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Colorado Crush and the Arena Football League
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Colorado Crush and the Arena Football League case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Afl Crush, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Afl Crush 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 Colorado Crush and the Arena Football League can be done for the following purposes –
1. Strategic planning using facts provided in Colorado Crush and the Arena Football League case study
2. Improving business portfolio management of Afl Crush
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 Afl Crush
Strengths Colorado Crush and the Arena Football League | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Afl Crush in Colorado Crush and the Arena Football League Harvard Business Review case study are -
Successful track record of launching new products
– Afl Crush has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Afl Crush 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.
Highly skilled collaborators
– Afl Crush 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 Colorado Crush and the Arena Football League HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Afl Crush 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 Afl Crush is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Colorado Crush and the Arena Football League Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Afl Crush in the sector have low bargaining power. Colorado Crush and the Arena Football League has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Afl Crush to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Afl Crush has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Afl Crush to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Afl Crush has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Colorado Crush and the Arena Football League 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.
Innovation driven organization
– Afl Crush is one of the most innovative firm in sector. Manager in Colorado Crush and the Arena Football League Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Afl Crush 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 Foster, Alicia Seiger 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.
Diverse revenue streams
– Afl Crush is present in almost all the verticals within the industry. This has provided firm in Colorado Crush and the Arena Football League 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 lead change in Strategy & Execution field
– Afl Crush 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 Afl Crush in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Afl Crush is one of the leading recruiters in the industry. Managers in the Colorado Crush and the Arena Football League are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Afl Crush 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 Colorado Crush and the Arena Football League - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Colorado Crush and the Arena Football League | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Colorado Crush and the Arena Football League are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Colorado Crush and the Arena Football League 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 Afl Crush has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Colorado Crush and the Arena Football League 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 Colorado Crush and the Arena Football League can leverage the sales team experience to cultivate customer relationships as Afl Crush is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, George Foster, Alicia Seiger suggests that, Afl Crush 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Colorado Crush and the Arena Football League, in the dynamic environment Afl Crush has struggled to respond to the nimble upstart competition. Afl Crush has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Afl Crush is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Afl Crush needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Afl Crush to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Afl Crush 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.
No frontier risks strategy
– After analyzing the HBR case study Colorado Crush and the Arena Football League, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Interest costs
– Compare to the competition, Afl Crush 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Colorado Crush and the Arena Football League, is just above the industry average. Afl Crush 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 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 Afl Crush supply chain. Even after few cautionary changes mentioned in the HBR case study - Colorado Crush and the Arena Football League, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Afl Crush vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Colorado Crush and the Arena Football League, it seems that the employees of Afl Crush 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.
Opportunities Colorado Crush and the Arena Football League | 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 Colorado Crush and the Arena Football League are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Afl Crush can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Afl Crush can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Manufacturing automation
– Afl Crush 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.
Loyalty marketing
– Afl Crush 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.
Building a culture of innovation
– managers at Afl Crush 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Afl Crush 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Afl Crush 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 Afl Crush to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Afl Crush can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Colorado Crush and the Arena Football League 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Afl Crush can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Afl Crush 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 Colorado Crush and the Arena Football League - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Afl Crush to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Afl Crush is facing challenges because of the dominance of functional experts in the organization. Colorado Crush and the Arena Football League 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 Afl Crush in the consumer business. Now Afl Crush can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Afl Crush 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. Afl Crush can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Colorado Crush and the Arena Football League External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Colorado Crush and the Arena Football League are -
Environmental challenges
– Afl Crush 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. Afl Crush can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
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. Afl Crush can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Afl Crush
– 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 Afl Crush.
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 Afl Crush business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Colorado Crush and the Arena Football League, Afl Crush 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 .
Stagnating economy with rate increase
– Afl Crush 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.
High dependence on third party suppliers
– Afl Crush 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. Afl Crush needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Afl Crush is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Afl Crush has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Afl Crush 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.
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.
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 Afl Crush.
Weighted SWOT Analysis of Colorado Crush and the Arena Football League 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 Colorado Crush and the Arena Football League 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 Colorado Crush and the Arena Football League 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 Colorado Crush and the Arena Football League 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 Colorado Crush and the Arena Football League 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 Afl Crush needs to make to build a sustainable competitive advantage.
