Futbol Club Barcelona: Globalization Opportunities SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Futbol Club Barcelona: Globalization Opportunities
In 2006, Futbol Club Barcelona (FC Barcelona) was one of the world's premier soccer teams. Founded in 1899, the club had experienced ups and downs over its history. Following some great years in the mid-1990s, the club had suffered a decline both financially and in its on-field performance, leading to a crisis in 2003. Traces the causes of this decline, and the actions taken by club management to restore the team's competitive and financial positions. Areas discussed include: governance, organization structure, management, fan experience, media, marketing and merchandizing, the club's social initiatives, and developing the club brand. Discusses the global development of European soccer, and FC Barcelona's efforts outside of Europe. The challenge in 2006 was to strengthen, position, and monetize the FC Barcelona brand globally. Opportunities in Asia, Africa, and Latin America are discussed, but focuses on Major League Soccer (MLS) in the United States, and whether or not FC Barcelona should purchase an MLS club in order to expand into the U.S. market.
Authors :: Antonio Davila, George Foster, Jaume Llopis
Swot Analysis of "Futbol Club Barcelona: Globalization Opportunities" written by Antonio Davila, George Foster, Jaume Llopis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Club Barcelona facing as an external strategic factors. Some of the topics covered in Futbol Club Barcelona: Globalization Opportunities case study are - Strategic Management Strategies, Globalization, Growth strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Futbol Club Barcelona: Globalization Opportunities casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Futbol Club Barcelona: Globalization Opportunities
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Futbol Club Barcelona: Globalization Opportunities case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Club Barcelona, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Club Barcelona 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 Futbol Club Barcelona: Globalization Opportunities can be done for the following purposes –
1. Strategic planning using facts provided in Futbol Club Barcelona: Globalization Opportunities case study
2. Improving business portfolio management of Club Barcelona
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 Club Barcelona
Strengths Futbol Club Barcelona: Globalization Opportunities | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Club Barcelona in Futbol Club Barcelona: Globalization Opportunities Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Club Barcelona 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.
Ability to lead change in Strategy & Execution field
– Club Barcelona 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 Club Barcelona in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Club Barcelona is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Club Barcelona in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Strategy & Execution industry
– Futbol Club Barcelona: Globalization Opportunities firm has clearly differentiated products in the market place. This has enabled Club Barcelona to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Club Barcelona to invest into research and development (R&D) and innovation.
Organizational Resilience of Club Barcelona
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Club Barcelona does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Club Barcelona has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Club Barcelona to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Club Barcelona 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 Club Barcelona is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Futbol Club Barcelona: Globalization Opportunities Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Club Barcelona digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Club Barcelona 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.
Innovation driven organization
– Club Barcelona is one of the most innovative firm in sector. Manager in Futbol Club Barcelona: Globalization Opportunities Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Futbol Club Barcelona: Globalization Opportunities Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Successful track record of launching new products
– Club Barcelona has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Club Barcelona 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.
Weaknesses Futbol Club Barcelona: Globalization Opportunities | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Futbol Club Barcelona: Globalization Opportunities are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Club Barcelona is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Futbol Club Barcelona: Globalization Opportunities can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Club Barcelona 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.
Products dominated business model
– Even though Club Barcelona 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 - Futbol Club Barcelona: Globalization Opportunities should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Futbol Club Barcelona: Globalization Opportunities HBR case study mentions - Club Barcelona 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.
Capital Spending Reduction
– Even during the low interest decade, Club Barcelona 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.
Increasing silos among functional specialists
– The organizational structure of Club Barcelona is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Club Barcelona needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Club Barcelona to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Futbol Club Barcelona: Globalization Opportunities 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 Club Barcelona 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Club Barcelona 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. Club Barcelona 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 Futbol Club Barcelona: Globalization Opportunities, it seems that the employees of Club Barcelona 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.
No frontier risks strategy
– After analyzing the HBR case study Futbol Club Barcelona: Globalization Opportunities, 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Futbol Club Barcelona: Globalization Opportunities, is just above the industry average. Club Barcelona 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.
Opportunities Futbol Club Barcelona: Globalization Opportunities | 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 Futbol Club Barcelona: Globalization Opportunities are -
Buying journey improvements
– Club Barcelona can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Futbol Club Barcelona: Globalization Opportunities 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.
Loyalty marketing
– Club Barcelona 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.
Learning at scale
– Online learning technologies has now opened space for Club Barcelona 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Club Barcelona 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Club Barcelona 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 Club Barcelona to hire the very best people irrespective of their geographical location.
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. Club Barcelona 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 Club Barcelona in the consumer business. Now Club Barcelona can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Club Barcelona has opened avenues for new revenue streams for the organization in the industry. This can help Club Barcelona to build a more holistic ecosystem as suggested in the Futbol Club Barcelona: Globalization Opportunities case study. Club Barcelona can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Club Barcelona 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, Futbol Club Barcelona: Globalization Opportunities, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Club Barcelona can use these opportunities to build new business models that can help the communities that Club Barcelona operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Building a culture of innovation
– managers at Club Barcelona 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.
Leveraging digital technologies
– Club Barcelona 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.
Developing new processes and practices
– Club Barcelona 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.
Threats Futbol Club Barcelona: Globalization Opportunities External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Futbol Club Barcelona: Globalization Opportunities are -
High dependence on third party suppliers
– Club Barcelona 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Club Barcelona with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Club Barcelona 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.
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.
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.
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. Club Barcelona needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Consumer confidence and its impact on Club Barcelona 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.
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 Club Barcelona business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Club Barcelona 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. Club Barcelona can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Club Barcelona 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.
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. Club Barcelona 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Futbol Club Barcelona: Globalization Opportunities, Club Barcelona 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 .
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 Club Barcelona.
Weighted SWOT Analysis of Futbol Club Barcelona: Globalization Opportunities 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 Futbol Club Barcelona: Globalization Opportunities 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 Futbol Club Barcelona: Globalization Opportunities 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 Futbol Club Barcelona: Globalization Opportunities 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 Futbol Club Barcelona: Globalization Opportunities 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 Club Barcelona needs to make to build a sustainable competitive advantage.