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 - – banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing energy prices, increasing transportation and logistics costs, wage bills are increasing, geopolitical disruptions, supply chains are disrupted by pandemic ,
there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, 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 -
Diverse revenue streams
– Www.edmunds.com Edmund's is present in almost all the verticals within the industry. This has provided firm in Edmund's--www.edmunds.com, Supplement 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
– 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.
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.
Successful track record of launching new products
– Www.edmunds.com Edmund's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Www.edmunds.com Edmund's 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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Www.edmunds.com Edmund's in the sector have low bargaining power. Edmund's--www.edmunds.com, Supplement has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Www.edmunds.com Edmund's to manage not only supply disruptions but also source products at highly competitive prices.
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.
Training and development
– Www.edmunds.com Edmund's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Edmund's--www.edmunds.com, Supplement 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Www.edmunds.com Edmund's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Www.edmunds.com Edmund's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
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.
High brand equity
– Www.edmunds.com Edmund's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Www.edmunds.com Edmund's to keep acquiring new customers and building profitable relationship with both the new and loyal 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 -
Lack of clear differentiation of Www.edmunds.com Edmund's products
– To increase the profitability and margins on the products, Www.edmunds.com Edmund's needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Www.edmunds.com Edmund's supply chain. Even after few cautionary changes mentioned in the HBR case study - Edmund's--www.edmunds.com, Supplement, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Www.edmunds.com Edmund's vulnerable to further global disruptions in South East Asia.
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.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Www.edmunds.com Edmund's has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Www.edmunds.com Edmund's even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Edmund's--www.edmunds.com, Supplement 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 Www.edmunds.com Edmund's has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Richard L. Nolan, Stephen P. Bradley, John J. Sviokla, Kelley Porter suggests that, Www.edmunds.com Edmund's 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.
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.
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.
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 -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Www.edmunds.com Edmund's 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Www.edmunds.com Edmund's can use these opportunities to build new business models that can help the communities that Www.edmunds.com Edmund's operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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.
Developing new processes and practices
– Www.edmunds.com Edmund's 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Www.edmunds.com Edmund's can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Www.edmunds.com Edmund's can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Www.edmunds.com Edmund's 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Www.edmunds.com Edmund's is facing challenges because of the dominance of functional experts in the organization. Edmund's--www.edmunds.com, Supplement 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.
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.
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.
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.
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.
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 -
High dependence on third party suppliers
– Www.edmunds.com Edmund's 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.
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.
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.
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. Www.edmunds.com Edmund's 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Edmund's--www.edmunds.com, Supplement, Www.edmunds.com Edmund's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Increasing wage structure of Www.edmunds.com Edmund's
– 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 Www.edmunds.com Edmund's.
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 Www.edmunds.com Edmund's.
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 Www.edmunds.com Edmund's business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
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.
