Case Study Description of Visa Sponsorship Marketing
Visa was the world's leading payment brand and its vision was to be "The World's Best Way to Pay." Visa attributed an important part of its success to high-profile sponsorships such as its Olympic Games sponsorship. Visa also sponsored numerous events such as the Rugby World Cup, Best of Broadway, the Toronto Film Festival, NASCAR, the NFL, the Visa Triple Crown, and the Paralympics, and has an international alliance with The Walt Disney Co. In the fall of 2002, Visa announced its decision to extend its Olympic Games sponsorship through 2012. Thomas Shepard, Visa's executive vice president of international marketing, partnerships, and sponsorship, played a key role in convincing Visa's six regional boards and its international board to allow Visa to extend its Olympics and Paralympics sponsorship. In the summer of 2003, Shepard and his team gathered at Visa's international headquarters located in San Mateo, California, to reflect on the impact and lessons of its past sponsorship activities. Specifically, they discussed the current corporate strategy and refinement of the existing sponsorship strategy. They looked at greater involvement in the field of entertainment and, as an outgrowth of the strategy, selecting and working with new partners such as The Walt Disney Co. (2002); how to evaluate the effectiveness of Visa's existing sponsorships; and how to apply lessons from its existing and past sponsorships to current and future ones.
Swot Analysis of "Visa Sponsorship Marketing" written by George Foster, Victoria Chang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Visa Sponsorship facing as an external strategic factors. Some of the topics covered in Visa Sponsorship Marketing case study are - Strategic Management Strategies, Marketing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Visa Sponsorship Marketing casestudy better are - – wage bills are increasing, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption,
there is backlash against globalization, increasing energy prices, etc
Introduction to SWOT Analysis of Visa Sponsorship Marketing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Visa Sponsorship Marketing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Visa Sponsorship, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Visa Sponsorship 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 Visa Sponsorship Marketing can be done for the following purposes –
1. Strategic planning using facts provided in Visa Sponsorship Marketing case study
2. Improving business portfolio management of Visa Sponsorship
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 Visa Sponsorship
Strengths Visa Sponsorship Marketing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Visa Sponsorship in Visa Sponsorship Marketing Harvard Business Review case study are -
Effective Research and Development (R&D)
– Visa Sponsorship 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 Visa Sponsorship Marketing - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Visa Sponsorship is one of the leading recruiters in the industry. Managers in the Visa Sponsorship Marketing are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Visa Sponsorship in the sector have low bargaining power. Visa Sponsorship Marketing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Visa Sponsorship to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Strategy & Execution industry
– Visa Sponsorship Marketing firm has clearly differentiated products in the market place. This has enabled Visa Sponsorship to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Visa Sponsorship to invest into research and development (R&D) and innovation.
Training and development
– Visa Sponsorship has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Visa Sponsorship Marketing 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.
Superior customer experience
– The customer experience strategy of Visa Sponsorship in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Visa Sponsorship 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 Visa Sponsorship is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Visa Sponsorship Marketing Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Visa Sponsorship 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, Victoria Chang 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
– Visa Sponsorship is present in almost all the verticals within the industry. This has provided firm in Visa Sponsorship Marketing 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
– Visa Sponsorship 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 Visa Sponsorship in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Visa Sponsorship has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Visa Sponsorship 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.
Operational resilience
– The operational resilience strategy in the Visa Sponsorship Marketing 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.
Weaknesses Visa Sponsorship Marketing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Visa Sponsorship Marketing are -
Capital Spending Reduction
– Even during the low interest decade, Visa Sponsorship 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 cash cycle compare to competitors
Visa Sponsorship 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.
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 Visa Sponsorship supply chain. Even after few cautionary changes mentioned in the HBR case study - Visa Sponsorship Marketing, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Visa Sponsorship vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Visa Sponsorship products
– To increase the profitability and margins on the products, Visa Sponsorship needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Visa Sponsorship needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Increasing silos among functional specialists
– The organizational structure of Visa Sponsorship is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Visa Sponsorship needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Visa Sponsorship to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Visa Sponsorship Marketing 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 Visa Sponsorship Marketing can leverage the sales team experience to cultivate customer relationships as Visa Sponsorship is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Visa Sponsorship 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Visa Sponsorship Marketing 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 Visa Sponsorship has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Visa Sponsorship Marketing HBR case study mentions - Visa Sponsorship 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.
High bargaining power of channel partners
– Because of the regulatory requirements, George Foster, Victoria Chang suggests that, Visa Sponsorship 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.
Opportunities Visa Sponsorship Marketing | 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 Visa Sponsorship Marketing are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Visa Sponsorship 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.
Building a culture of innovation
– managers at Visa Sponsorship 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.
Learning at scale
– Online learning technologies has now opened space for Visa Sponsorship 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.
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. Visa Sponsorship 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 Visa Sponsorship in the consumer business. Now Visa Sponsorship can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Visa Sponsorship 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.
Creating value in data economy
– The success of analytics program of Visa Sponsorship has opened avenues for new revenue streams for the organization in the industry. This can help Visa Sponsorship to build a more holistic ecosystem as suggested in the Visa Sponsorship Marketing case study. Visa Sponsorship can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Visa Sponsorship can use these opportunities to build new business models that can help the communities that Visa Sponsorship 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. Visa Sponsorship can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Visa Sponsorship 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 Visa Sponsorship 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Visa Sponsorship 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.
Using analytics as competitive advantage
– Visa Sponsorship 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 Visa Sponsorship Marketing - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Visa Sponsorship to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Visa Sponsorship Marketing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Visa Sponsorship Marketing are -
Shortening product life cycle
– it is one of the major threat that Visa Sponsorship is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Visa Sponsorship 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 Visa Sponsorship Marketing, Visa Sponsorship 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Visa Sponsorship 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 Visa Sponsorship Marketing .
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. Visa Sponsorship needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Visa Sponsorship has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Visa Sponsorship 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.
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. Visa Sponsorship can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Visa Sponsorship 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. Visa Sponsorship can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Visa Sponsorship 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.
Consumer confidence and its impact on Visa Sponsorship 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Visa Sponsorship 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.
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 Visa Sponsorship.
Weighted SWOT Analysis of Visa Sponsorship Marketing 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 Visa Sponsorship Marketing 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 Visa Sponsorship Marketing 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 Visa Sponsorship Marketing 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 Visa Sponsorship Marketing 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 Visa Sponsorship needs to make to build a sustainable competitive advantage.