Cyberservice: Taming Service Marketing Problems with the World Wide Web SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Cyberservice: Taming Service Marketing Problems with the World Wide Web
Service marketing is usually considered more difficult, complex, and onerous because of the problems created by characteristics unique to services. However, the World Wide Web has dramatically changed this received wisdom forever. Cyberservice not only overcomes previously imagined limitations of service marketing, it also creates new opportunities. The Web enables marketers to manage those characteristics--intangibility, simultaneity, heterogeneity, and perishability--once regarded as formidable barriers to service marketing. Web sites can, and should, lend a tangible dimension to services--if the quality, frequency of update, and server speed are up to par. The Web can even provide a "sample" of the service. Service marketers can use the Web to manage simultaneity by customizing, involving the customer as a part-time employee, industrializing services, and reducing customer errors. Cyberservice overturns the traditional hierarchy between products and service with its three unique characteristics: the ability to quantize, search, and automate.
Authors :: Leyland Pitt, Pierre R. Berthon, Richard T. Watson
Swot Analysis of "Cyberservice: Taming Service Marketing Problems with the World Wide Web" written by Leyland Pitt, Pierre R. Berthon, Richard T. Watson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cyberservice Web facing as an external strategic factors. Some of the topics covered in Cyberservice: Taming Service Marketing Problems with the World Wide Web case study are - Strategic Management Strategies, Internet, Marketing and Technology & Operations.
Some of the macro environment factors that can be used to understand the Cyberservice: Taming Service Marketing Problems with the World Wide Web casestudy better are - – increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, central banks are concerned over increasing inflation, there is increasing trade war between United States & China,
increasing commodity prices, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Cyberservice: Taming Service Marketing Problems with the World Wide Web
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cyberservice: Taming Service Marketing Problems with the World Wide Web case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cyberservice Web, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cyberservice Web 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 Cyberservice: Taming Service Marketing Problems with the World Wide Web can be done for the following purposes –
1. Strategic planning using facts provided in Cyberservice: Taming Service Marketing Problems with the World Wide Web case study
2. Improving business portfolio management of Cyberservice Web
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 Cyberservice Web
Strengths Cyberservice: Taming Service Marketing Problems with the World Wide Web | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cyberservice Web in Cyberservice: Taming Service Marketing Problems with the World Wide Web Harvard Business Review case study are -
Organizational Resilience of Cyberservice Web
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cyberservice Web does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Cyberservice: Taming Service Marketing Problems with the World Wide Web 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.
Superior customer experience
– The customer experience strategy of Cyberservice Web in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Cyberservice Web 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 Cyberservice Web is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Cyberservice: Taming Service Marketing Problems with the World Wide Web Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Cyberservice Web has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Cyberservice: Taming Service Marketing Problems with the World Wide Web 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 Cyberservice Web digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cyberservice Web 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.
Successful track record of launching new products
– Cyberservice Web has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cyberservice Web 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.
Sustainable margins compare to other players in Technology & Operations industry
– Cyberservice: Taming Service Marketing Problems with the World Wide Web firm has clearly differentiated products in the market place. This has enabled Cyberservice Web to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Cyberservice Web to invest into research and development (R&D) and innovation.
High brand equity
– Cyberservice Web has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cyberservice Web to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Cyberservice Web 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 Leyland Pitt, Pierre R. Berthon, Richard T. Watson 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.
Innovation driven organization
– Cyberservice Web is one of the most innovative firm in sector. Manager in Cyberservice: Taming Service Marketing Problems with the World Wide Web Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Cyberservice Web is present in almost all the verticals within the industry. This has provided firm in Cyberservice: Taming Service Marketing Problems with the World Wide Web 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.
Weaknesses Cyberservice: Taming Service Marketing Problems with the World Wide Web | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cyberservice: Taming Service Marketing Problems with the World Wide Web are -
Interest costs
– Compare to the competition, Cyberservice Web 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.
No frontier risks strategy
– After analyzing the HBR case study Cyberservice: Taming Service Marketing Problems with the World Wide Web, 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.
Slow decision making process
– As mentioned earlier in the report, Cyberservice Web 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. Cyberservice Web 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Cyberservice: Taming Service Marketing Problems with the World Wide Web, is just above the industry average. Cyberservice Web needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High cash cycle compare to competitors
Cyberservice Web 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.
Capital Spending Reduction
– Even during the low interest decade, Cyberservice Web 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.
Slow to strategic competitive environment developments
– As Cyberservice: Taming Service Marketing Problems with the World Wide Web HBR case study mentions - Cyberservice Web 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Cyberservice: Taming Service Marketing Problems with the World Wide Web, in the dynamic environment Cyberservice Web has struggled to respond to the nimble upstart competition. Cyberservice Web has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Leyland Pitt, Pierre R. Berthon, Richard T. Watson suggests that, Cyberservice Web 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 Cyberservice Web is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Cyberservice Web needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cyberservice Web to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Cyberservice: Taming Service Marketing Problems with the World Wide Web 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 Cyberservice: Taming Service Marketing Problems with the World Wide Web can leverage the sales team experience to cultivate customer relationships as Cyberservice Web is planning to shift buying processes online.
Opportunities Cyberservice: Taming Service Marketing Problems with the World Wide Web | 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 Cyberservice: Taming Service Marketing Problems with the World Wide Web are -
Learning at scale
– Online learning technologies has now opened space for Cyberservice Web 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.
Loyalty marketing
– Cyberservice Web 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.
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 Cyberservice Web 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cyberservice Web 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, Cyberservice: Taming Service Marketing Problems with the World Wide Web, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Cyberservice Web to increase its market reach. Cyberservice Web 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.
Buying journey improvements
– Cyberservice Web can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Cyberservice: Taming Service Marketing Problems with the World Wide Web 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cyberservice Web can use these opportunities to build new business models that can help the communities that Cyberservice Web operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cyberservice Web 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
– Cyberservice Web 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
– Cyberservice Web 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 Cyberservice: Taming Service Marketing Problems with the World Wide Web - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cyberservice Web to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Cyberservice Web 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.
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. Cyberservice Web can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Cyberservice Web 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.
Threats Cyberservice: Taming Service Marketing Problems with the World Wide Web External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cyberservice: Taming Service Marketing Problems with the World Wide Web are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cyberservice Web with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cyberservice Web 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 Cyberservice: Taming Service Marketing Problems with the World Wide Web .
Regulatory challenges
– Cyberservice Web 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. Cyberservice Web needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Increasing wage structure of Cyberservice Web
– 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 Cyberservice Web.
High dependence on third party suppliers
– Cyberservice Web 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.
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. Cyberservice Web 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 acceleration in Forth Industrial Revolution
– Cyberservice Web has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Cyberservice Web 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cyberservice Web 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.
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 Cyberservice Web business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Cyberservice Web 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.
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 Cyberservice Web.
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. Cyberservice Web can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Cyberservice: Taming Service Marketing Problems with the World Wide Web 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 Cyberservice: Taming Service Marketing Problems with the World Wide Web 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 Cyberservice: Taming Service Marketing Problems with the World Wide Web 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 Cyberservice: Taming Service Marketing Problems with the World Wide Web 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 Cyberservice: Taming Service Marketing Problems with the World Wide Web 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 Cyberservice Web needs to make to build a sustainable competitive advantage.
