Larry Kramer, the chairman and CEO of MarketWatch.com, is faced with a dilemma. In April 2000, his company--a joint venture of CBS and Data Broadcasting Corp.--has emerged as the leading financial information and data provider online. Yet, because of the downturn in Internet stocks, he has to choose between getting "big" fast or become "profitable" fast to please Wall Street. What should he do? Over the horizon is the threat of other media players (CNNfn, CNBC) entering his space.
Swot Analysis of "CBS.MarketWatch" written by Jeffrey Rayport, Dickson L. Louie includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cbs.marketwatch Cnnfn facing as an external strategic factors. Some of the topics covered in CBS.MarketWatch case study are - Strategic Management Strategies, Entrepreneurship, Joint ventures, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the CBS.MarketWatch casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, geopolitical disruptions,
digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in CBS.MarketWatch case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cbs.marketwatch Cnnfn, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cbs.marketwatch Cnnfn 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 CBS.MarketWatch can be done for the following purposes –
1. Strategic planning using facts provided in CBS.MarketWatch case study
2. Improving business portfolio management of Cbs.marketwatch Cnnfn
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 Cbs.marketwatch Cnnfn
Strengths CBS.MarketWatch | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cbs.marketwatch Cnnfn in CBS.MarketWatch Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Cbs.marketwatch Cnnfn in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Cbs.marketwatch Cnnfn has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in CBS.MarketWatch Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Effective Research and Development (R&D)
– Cbs.marketwatch Cnnfn 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 CBS.MarketWatch - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Cbs.marketwatch Cnnfn has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cbs.marketwatch Cnnfn 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 CBS.MarketWatch 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.
Low bargaining power of suppliers
– Suppliers of Cbs.marketwatch Cnnfn in the sector have low bargaining power. CBS.MarketWatch has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cbs.marketwatch Cnnfn to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Cbs.marketwatch Cnnfn 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 CBS.MarketWatch HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Cbs.marketwatch Cnnfn 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 Cbs.marketwatch Cnnfn is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in CBS.MarketWatch Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Technology & Operations field
– Cbs.marketwatch Cnnfn 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 Cbs.marketwatch Cnnfn in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Cbs.marketwatch Cnnfn is present in almost all the verticals within the industry. This has provided firm in CBS.MarketWatch 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.
Strong track record of project management
– Cbs.marketwatch Cnnfn is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Cbs.marketwatch Cnnfn 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.
Weaknesses CBS.MarketWatch | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CBS.MarketWatch are -
Interest costs
– Compare to the competition, Cbs.marketwatch Cnnfn 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cbs.marketwatch Cnnfn is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study CBS.MarketWatch 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 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 Cbs.marketwatch Cnnfn supply chain. Even after few cautionary changes mentioned in the HBR case study - CBS.MarketWatch, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cbs.marketwatch Cnnfn vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Cbs.marketwatch Cnnfn 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.
Products dominated business model
– Even though Cbs.marketwatch Cnnfn 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 - CBS.MarketWatch should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study CBS.MarketWatch 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 Cbs.marketwatch Cnnfn 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the CBS.MarketWatch 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 Cbs.marketwatch Cnnfn has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As CBS.MarketWatch HBR case study mentions - Cbs.marketwatch Cnnfn 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 cash cycle compare to competitors
Cbs.marketwatch Cnnfn 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.
Need for greater diversity
– Cbs.marketwatch Cnnfn has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study CBS.MarketWatch, it seems that the employees of Cbs.marketwatch Cnnfn 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 CBS.MarketWatch | 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 CBS.MarketWatch are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Cbs.marketwatch Cnnfn 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.
Manufacturing automation
– Cbs.marketwatch Cnnfn 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.
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 Cbs.marketwatch Cnnfn in the consumer business. Now Cbs.marketwatch Cnnfn can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cbs.marketwatch Cnnfn 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 Cbs.marketwatch Cnnfn to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Cbs.marketwatch Cnnfn 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cbs.marketwatch Cnnfn can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Cbs.marketwatch Cnnfn 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 Technology & Operations segment.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cbs.marketwatch Cnnfn 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Cbs.marketwatch Cnnfn can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Cbs.marketwatch Cnnfn 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.
Loyalty marketing
– Cbs.marketwatch Cnnfn 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.
Using analytics as competitive advantage
– Cbs.marketwatch Cnnfn 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 CBS.MarketWatch - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cbs.marketwatch Cnnfn to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Cbs.marketwatch Cnnfn can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats CBS.MarketWatch External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study CBS.MarketWatch are -
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.
Increasing wage structure of Cbs.marketwatch Cnnfn
– 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 Cbs.marketwatch Cnnfn.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cbs.marketwatch Cnnfn 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 CBS.MarketWatch .
Consumer confidence and its impact on Cbs.marketwatch Cnnfn 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cbs.marketwatch Cnnfn with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cbs.marketwatch Cnnfn 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
– Cbs.marketwatch Cnnfn 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. Cbs.marketwatch Cnnfn can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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. Cbs.marketwatch Cnnfn needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cbs.marketwatch Cnnfn in the Technology & Operations industry. The Technology & Operations 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.
Technology acceleration in Forth Industrial Revolution
– Cbs.marketwatch Cnnfn has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Cbs.marketwatch Cnnfn 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.
High dependence on third party suppliers
– Cbs.marketwatch Cnnfn 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.
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 Cbs.marketwatch Cnnfn business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of CBS.MarketWatch 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 CBS.MarketWatch 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 CBS.MarketWatch 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 CBS.MarketWatch 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 CBS.MarketWatch 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 Cbs.marketwatch Cnnfn needs to make to build a sustainable competitive advantage.
