ServiceMaster, a Fortune 500 supplier of home services such as Terminex, Trugreen (lawn care), and MerryMaids, has a 50% interest in an Internet start-up designed to attract new customers to its services and help service providers improve quality and lower costs. Should ServiceMaster buy the remaining 20% from VC Kleiner Perkins, or should ServiceMaster make WeServHomes.com even more independent?
Swot Analysis of "WeServeHomes.com" written by Roger Hallowell, David Kiron includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Servicemaster Merrymaids facing as an external strategic factors. Some of the topics covered in WeServeHomes.com case study are - Strategic Management Strategies, Entrepreneurship, Internet, IT, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the WeServeHomes.com casestudy better are - – increasing transportation and logistics costs, geopolitical disruptions, increasing household debt because of falling income levels, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices,
challanges to central banks by blockchain based private currencies, increasing energy prices, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in WeServeHomes.com case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Servicemaster Merrymaids, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Servicemaster Merrymaids 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 WeServeHomes.com can be done for the following purposes –
1. Strategic planning using facts provided in WeServeHomes.com case study
2. Improving business portfolio management of Servicemaster Merrymaids
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 Servicemaster Merrymaids
Strengths WeServeHomes.com | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Servicemaster Merrymaids in WeServeHomes.com Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Servicemaster Merrymaids in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Technology & Operations industry
– WeServeHomes.com firm has clearly differentiated products in the market place. This has enabled Servicemaster Merrymaids to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Servicemaster Merrymaids to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Servicemaster Merrymaids in the sector have low bargaining power. WeServeHomes.com has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Servicemaster Merrymaids to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Servicemaster Merrymaids 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.
Training and development
– Servicemaster Merrymaids has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in WeServeHomes.com 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.
Successful track record of launching new products
– Servicemaster Merrymaids has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Servicemaster Merrymaids 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.
Highly skilled collaborators
– Servicemaster Merrymaids 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 WeServeHomes.com HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Servicemaster Merrymaids
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Servicemaster Merrymaids does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Servicemaster Merrymaids has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Servicemaster Merrymaids to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Technology & Operations field
– Servicemaster Merrymaids 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 Servicemaster Merrymaids in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Servicemaster Merrymaids 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 Roger Hallowell, David Kiron 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.
Operational resilience
– The operational resilience strategy in the WeServeHomes.com Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Weaknesses WeServeHomes.com | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of WeServeHomes.com are -
Need for greater diversity
– Servicemaster Merrymaids 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.
Increasing silos among functional specialists
– The organizational structure of Servicemaster Merrymaids is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Servicemaster Merrymaids needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Servicemaster Merrymaids to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study WeServeHomes.com, in the dynamic environment Servicemaster Merrymaids has struggled to respond to the nimble upstart competition. Servicemaster Merrymaids has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Servicemaster Merrymaids 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 - WeServeHomes.com should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study WeServeHomes.com, 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 bargaining power of channel partners
– Because of the regulatory requirements, Roger Hallowell, David Kiron suggests that, Servicemaster Merrymaids 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the WeServeHomes.com 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 Servicemaster Merrymaids has relatively successful track record of launching new products.
High cash cycle compare to competitors
Servicemaster Merrymaids 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Servicemaster Merrymaids needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High operating costs
– Compare to the competitors, firm in the HBR case study WeServeHomes.com 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 Servicemaster Merrymaids 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Servicemaster Merrymaids 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.
Opportunities WeServeHomes.com | 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 WeServeHomes.com are -
Learning at scale
– Online learning technologies has now opened space for Servicemaster Merrymaids 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Servicemaster Merrymaids 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 Servicemaster Merrymaids to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Servicemaster Merrymaids 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Servicemaster Merrymaids can use these opportunities to build new business models that can help the communities that Servicemaster Merrymaids operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Using analytics as competitive advantage
– Servicemaster Merrymaids 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 WeServeHomes.com - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Servicemaster Merrymaids to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Servicemaster Merrymaids 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. Servicemaster Merrymaids 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
– Servicemaster Merrymaids 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.
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. Servicemaster Merrymaids can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Servicemaster Merrymaids to increase its market reach. Servicemaster Merrymaids 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Servicemaster Merrymaids 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.
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. Servicemaster Merrymaids can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Servicemaster Merrymaids can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, WeServeHomes.com, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Servicemaster Merrymaids in the consumer business. Now Servicemaster Merrymaids can target international markets with far fewer capital restrictions requirements than the existing system.
Threats WeServeHomes.com External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study WeServeHomes.com are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Servicemaster Merrymaids 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 WeServeHomes.com .
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. Servicemaster Merrymaids needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 Servicemaster Merrymaids.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Servicemaster Merrymaids with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Servicemaster Merrymaids 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.
Regulatory challenges
– Servicemaster Merrymaids 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study WeServeHomes.com, Servicemaster Merrymaids 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 Servicemaster Merrymaids
– 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 Servicemaster Merrymaids.
Environmental challenges
– Servicemaster Merrymaids 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. Servicemaster Merrymaids can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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.
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.
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 Servicemaster Merrymaids business can come under increasing regulations regarding data privacy, data security, 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 Servicemaster Merrymaids in the Technology & Operations sector and impact the bottomline of the organization.
Weighted SWOT Analysis of WeServeHomes.com 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 WeServeHomes.com 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 WeServeHomes.com 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 WeServeHomes.com 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 WeServeHomes.com 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 Servicemaster Merrymaids needs to make to build a sustainable competitive advantage.
