Swot Analysis of "Edmund's--www.edmunds.com, Supplement" written by Richard L. Nolan, Stephen P. Bradley, John J. Sviokla, Kelley Porter includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Www.edmunds.com Edmund's facing as an external strategic factors. Some of the topics covered in Edmund's--www.edmunds.com, Supplement case study are - Strategic Management Strategies, Marketing and Technology & Operations.
Some of the macro environment factors that can be used to understand the Edmund's--www.edmunds.com, Supplement casestudy better are - – central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China,
challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Edmund's--www.edmunds.com, Supplement
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Edmund's--www.edmunds.com, Supplement case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Www.edmunds.com Edmund's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Www.edmunds.com Edmund's 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 Edmund's--www.edmunds.com, Supplement can be done for the following purposes –
1. Strategic planning using facts provided in Edmund's--www.edmunds.com, Supplement case study
2. Improving business portfolio management of Www.edmunds.com Edmund's
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 Www.edmunds.com Edmund's
Strengths Edmund's--www.edmunds.com, Supplement | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Www.edmunds.com Edmund's in Edmund's--www.edmunds.com, Supplement Harvard Business Review case study are -
Organizational Resilience of Www.edmunds.com Edmund's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Www.edmunds.com Edmund's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Technology & Operations field
– Www.edmunds.com Edmund's 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 Www.edmunds.com Edmund's 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
– Www.edmunds.com Edmund's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Www.edmunds.com Edmund's 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 Richard L. Nolan, Stephen P. Bradley, John J. Sviokla, Kelley Porter 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.
Sustainable margins compare to other players in Technology & Operations industry
– Edmund's--www.edmunds.com, Supplement firm has clearly differentiated products in the market place. This has enabled Www.edmunds.com Edmund's to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Www.edmunds.com Edmund's to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Www.edmunds.com Edmund's 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 recruit top talent
– Www.edmunds.com Edmund's is one of the leading recruiters in the industry. Managers in the Edmund's--www.edmunds.com, Supplement are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Www.edmunds.com Edmund's is one of the most innovative firm in sector. Manager in Edmund's--www.edmunds.com, Supplement Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Www.edmunds.com Edmund's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Edmund's--www.edmunds.com, Supplement 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.
Learning organization
- Www.edmunds.com Edmund's 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 Www.edmunds.com Edmund's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Edmund's--www.edmunds.com, Supplement Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Www.edmunds.com Edmund's 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.
Weaknesses Edmund's--www.edmunds.com, Supplement | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Edmund's--www.edmunds.com, Supplement are -
Products dominated business model
– Even though Www.edmunds.com Edmund's 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 - Edmund's--www.edmunds.com, Supplement should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Edmund's--www.edmunds.com, Supplement HBR case study mentions - Www.edmunds.com Edmund's 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 operating costs
– Compare to the competitors, firm in the HBR case study Edmund's--www.edmunds.com, Supplement 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 Www.edmunds.com Edmund's 's lucrative customers.
Need for greater diversity
– Www.edmunds.com Edmund's 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.
Aligning sales with marketing
– It come across in the case study Edmund's--www.edmunds.com, Supplement 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 Edmund's--www.edmunds.com, Supplement can leverage the sales team experience to cultivate customer relationships as Www.edmunds.com Edmund's is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Edmund's--www.edmunds.com, Supplement, it seems that the employees of Www.edmunds.com Edmund's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Edmund's--www.edmunds.com, Supplement, in the dynamic environment Www.edmunds.com Edmund's has struggled to respond to the nimble upstart competition. Www.edmunds.com Edmund's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Www.edmunds.com Edmund's 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 Www.edmunds.com Edmund's is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Www.edmunds.com Edmund's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Www.edmunds.com Edmund's to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Www.edmunds.com Edmund's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Edmund's--www.edmunds.com, Supplement 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
Www.edmunds.com Edmund's 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.
Opportunities Edmund's--www.edmunds.com, Supplement | 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 Edmund's--www.edmunds.com, Supplement are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Www.edmunds.com Edmund's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Www.edmunds.com Edmund's 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.
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 Www.edmunds.com Edmund's in the consumer business. Now Www.edmunds.com Edmund's can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Www.edmunds.com Edmund's 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Www.edmunds.com Edmund's 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 Www.edmunds.com Edmund's to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Www.edmunds.com Edmund's has opened avenues for new revenue streams for the organization in the industry. This can help Www.edmunds.com Edmund's to build a more holistic ecosystem as suggested in the Edmund's--www.edmunds.com, Supplement case study. Www.edmunds.com Edmund's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Www.edmunds.com Edmund's to increase its market reach. Www.edmunds.com Edmund's 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.
Learning at scale
– Online learning technologies has now opened space for Www.edmunds.com Edmund's 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.
Building a culture of innovation
– managers at Www.edmunds.com Edmund's 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.
Buying journey improvements
– Www.edmunds.com Edmund's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Edmund's--www.edmunds.com, Supplement 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.
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. Www.edmunds.com Edmund's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Www.edmunds.com Edmund's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Www.edmunds.com Edmund's 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 Edmund's--www.edmunds.com, Supplement - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Www.edmunds.com Edmund's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Edmund's--www.edmunds.com, Supplement External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Edmund's--www.edmunds.com, Supplement are -
Regulatory challenges
– Www.edmunds.com Edmund's 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 Technology & Operations industry regulations.
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. Www.edmunds.com Edmund's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Www.edmunds.com Edmund's in the Technology & Operations sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Www.edmunds.com Edmund's 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.
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, Www.edmunds.com Edmund's 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 Edmund's--www.edmunds.com, Supplement .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Www.edmunds.com Edmund's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Www.edmunds.com Edmund's needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Environmental challenges
– Www.edmunds.com Edmund's 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. Www.edmunds.com Edmund's can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Consumer confidence and its impact on Www.edmunds.com Edmund's 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.
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.
Shortening product life cycle
– it is one of the major threat that Www.edmunds.com Edmund's is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Www.edmunds.com Edmund's has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Www.edmunds.com Edmund's 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.
Weighted SWOT Analysis of Edmund's--www.edmunds.com, Supplement 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 Edmund's--www.edmunds.com, Supplement 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 Edmund's--www.edmunds.com, Supplement 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 Edmund's--www.edmunds.com, Supplement 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 Edmund's--www.edmunds.com, Supplement 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 Www.edmunds.com Edmund's needs to make to build a sustainable competitive advantage.