Swot Analysis of "GuestFirst Hotel (B): Taking Advantage of Panel Data" written by Frances X. Frei, Dennis Campbell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Guestfirst Panel facing as an external strategic factors. Some of the topics covered in GuestFirst Hotel (B): Taking Advantage of Panel Data case study are - Strategic Management Strategies, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the GuestFirst Hotel (B): Taking Advantage of Panel Data casestudy better are - – challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, wage bills are increasing,
cloud computing is disrupting traditional business models, increasing commodity prices, etc
Introduction to SWOT Analysis of GuestFirst Hotel (B): Taking Advantage of Panel Data
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GuestFirst Hotel (B): Taking Advantage of Panel Data case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Guestfirst Panel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Guestfirst Panel 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 GuestFirst Hotel (B): Taking Advantage of Panel Data can be done for the following purposes –
1. Strategic planning using facts provided in GuestFirst Hotel (B): Taking Advantage of Panel Data case study
2. Improving business portfolio management of Guestfirst Panel
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Guestfirst Panel
Strengths GuestFirst Hotel (B): Taking Advantage of Panel Data | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Guestfirst Panel in GuestFirst Hotel (B): Taking Advantage of Panel Data Harvard Business Review case study are -
High brand equity
– Guestfirst Panel has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Guestfirst Panel to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Guestfirst Panel 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 GuestFirst Hotel (B): Taking Advantage of Panel Data HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Guestfirst Panel has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Innovation driven organization
– Guestfirst Panel is one of the most innovative firm in sector. Manager in GuestFirst Hotel (B): Taking Advantage of Panel Data Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Guestfirst Panel 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.
Superior customer experience
– The customer experience strategy of Guestfirst Panel in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Guestfirst Panel 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 Frances X. Frei, Dennis Campbell 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.
Ability to recruit top talent
– Guestfirst Panel is one of the leading recruiters in the industry. Managers in the GuestFirst Hotel (B): Taking Advantage of Panel Data are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Guestfirst Panel is present in almost all the verticals within the industry. This has provided firm in GuestFirst Hotel (B): Taking Advantage of Panel Data 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.
Low bargaining power of suppliers
– Suppliers of Guestfirst Panel in the sector have low bargaining power. GuestFirst Hotel (B): Taking Advantage of Panel Data has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Guestfirst Panel to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Guestfirst Panel 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 GuestFirst Hotel (B): Taking Advantage of Panel Data - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Guestfirst Panel 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 Guestfirst Panel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GuestFirst Hotel (B): Taking Advantage of Panel Data Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses GuestFirst Hotel (B): Taking Advantage of Panel Data | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GuestFirst Hotel (B): Taking Advantage of Panel Data are -
Products dominated business model
– Even though Guestfirst Panel 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 - GuestFirst Hotel (B): Taking Advantage of Panel Data should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study GuestFirst Hotel (B): Taking Advantage of Panel Data, is just above the industry average. Guestfirst Panel 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 cash cycle compare to competitors
Guestfirst Panel 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, Guestfirst Panel is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study GuestFirst Hotel (B): Taking Advantage of Panel Data can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study GuestFirst Hotel (B): Taking Advantage of Panel Data, it seems that the employees of Guestfirst Panel 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.
Aligning sales with marketing
– It come across in the case study GuestFirst Hotel (B): Taking Advantage of Panel Data 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 GuestFirst Hotel (B): Taking Advantage of Panel Data can leverage the sales team experience to cultivate customer relationships as Guestfirst Panel is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Guestfirst Panel, firm in the HBR case study GuestFirst Hotel (B): Taking Advantage of Panel Data needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Guestfirst Panel 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 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 Guestfirst Panel supply chain. Even after few cautionary changes mentioned in the HBR case study - GuestFirst Hotel (B): Taking Advantage of Panel Data, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Guestfirst Panel vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study GuestFirst Hotel (B): Taking Advantage of Panel Data, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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.
High operating costs
– Compare to the competitors, firm in the HBR case study GuestFirst Hotel (B): Taking Advantage of Panel Data 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 Guestfirst Panel 's lucrative customers.
Opportunities GuestFirst Hotel (B): Taking Advantage of Panel Data | 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 GuestFirst Hotel (B): Taking Advantage of Panel Data are -
Manufacturing automation
– Guestfirst Panel can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Developing new processes and practices
– Guestfirst Panel can develop new processes and procedures in Technology & Operations 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.
Leveraging digital technologies
– Guestfirst Panel 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Guestfirst Panel 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.
Using analytics as competitive advantage
– Guestfirst Panel 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 GuestFirst Hotel (B): Taking Advantage of Panel Data - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Guestfirst Panel 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, Guestfirst Panel is facing challenges because of the dominance of functional experts in the organization. GuestFirst Hotel (B): Taking Advantage of Panel Data 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Guestfirst Panel can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Guestfirst Panel has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Guestfirst Panel in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Guestfirst Panel to increase its market reach. Guestfirst Panel 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.
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 Guestfirst Panel 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.
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. Guestfirst Panel can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Guestfirst Panel 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 Guestfirst Panel to hire the very best people irrespective of their geographical location.
Threats GuestFirst Hotel (B): Taking Advantage of Panel Data External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GuestFirst Hotel (B): Taking Advantage of Panel Data are -
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.
Consumer confidence and its impact on Guestfirst Panel 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.
Technology acceleration in Forth Industrial Revolution
– Guestfirst Panel has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Guestfirst Panel needs to keep up with the evolution of technology in the Technology & Operations 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.
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 Guestfirst Panel business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Guestfirst Panel with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Guestfirst Panel can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Guestfirst Panel 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.
Environmental challenges
– Guestfirst Panel 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. Guestfirst Panel can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Guestfirst Panel.
High dependence on third party suppliers
– Guestfirst Panel 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Guestfirst Panel 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 GuestFirst Hotel (B): Taking Advantage of Panel Data .
Shortening product life cycle
– it is one of the major threat that Guestfirst Panel is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of GuestFirst Hotel (B): Taking Advantage of Panel Data 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 GuestFirst Hotel (B): Taking Advantage of Panel Data 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 GuestFirst Hotel (B): Taking Advantage of Panel Data 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 GuestFirst Hotel (B): Taking Advantage of Panel Data 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 GuestFirst Hotel (B): Taking Advantage of Panel Data 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 Guestfirst Panel needs to make to build a sustainable competitive advantage.