Business Intelligence Strategy at Canadian Tire SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Business Intelligence Strategy at Canadian Tire
Canadian Tire Corp. consists of five main business groups: a large retail chain providing automotive parts, sports and leisure, and home products; a financial division; a petroleum division; a specialty automotive parts division; and a retailer of casual and work wear clothing. The information technology group is faced with developing an implementation plan for the development of a business intelligence infrastructure and business capability at Canadian Tire Retail. Concurrent to this initiative is the development and implementation of an information technology strategy for Canadian Tire Corp., which places a number of programs on the priority list, with business intelligence seen as a high priority item for which the organization can score some quick-win business successes.
Swot Analysis of "Business Intelligence Strategy at Canadian Tire" written by Nicole R.D. Haggerty, Darren Meister includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tire Canadian facing as an external strategic factors. Some of the topics covered in Business Intelligence Strategy at Canadian Tire case study are - Strategic Management Strategies, Strategy execution and Technology & Operations.
Some of the macro environment factors that can be used to understand the Business Intelligence Strategy at Canadian Tire casestudy better are - – digital marketing is dominated by two big players Facebook and Google, technology disruption, central banks are concerned over increasing inflation, geopolitical disruptions, increasing transportation and logistics costs, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Business Intelligence Strategy at Canadian Tire
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Business Intelligence Strategy at Canadian Tire case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tire Canadian, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tire Canadian 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 Business Intelligence Strategy at Canadian Tire can be done for the following purposes –
1. Strategic planning using facts provided in Business Intelligence Strategy at Canadian Tire case study
2. Improving business portfolio management of Tire Canadian
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 Tire Canadian
Strengths Business Intelligence Strategy at Canadian Tire | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tire Canadian in Business Intelligence Strategy at Canadian Tire Harvard Business Review case study are -
Analytics focus
– Tire Canadian 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 Nicole R.D. Haggerty, Darren Meister 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.
Strong track record of project management
– Tire Canadian is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Tire Canadian has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tire Canadian 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.
High brand equity
– Tire Canadian has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tire Canadian to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Tire Canadian
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tire Canadian does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Tire Canadian digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tire Canadian 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.
Learning organization
- Tire Canadian 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 Tire Canadian is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Business Intelligence Strategy at Canadian Tire Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Tire Canadian in the sector have low bargaining power. Business Intelligence Strategy at Canadian Tire has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tire Canadian to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Business Intelligence Strategy at Canadian Tire 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.
Highly skilled collaborators
– Tire Canadian 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 Business Intelligence Strategy at Canadian Tire HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Technology & Operations field
– Tire Canadian 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 Tire Canadian in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Tire Canadian in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Business Intelligence Strategy at Canadian Tire | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Business Intelligence Strategy at Canadian Tire are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tire Canadian is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Business Intelligence Strategy at Canadian Tire can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study Business Intelligence Strategy at Canadian Tire, 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.
Aligning sales with marketing
– It come across in the case study Business Intelligence Strategy at Canadian Tire 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 Business Intelligence Strategy at Canadian Tire can leverage the sales team experience to cultivate customer relationships as Tire Canadian is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Business Intelligence Strategy at Canadian Tire, is just above the industry average. Tire Canadian 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Business Intelligence Strategy at Canadian Tire, in the dynamic environment Tire Canadian has struggled to respond to the nimble upstart competition. Tire Canadian has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Business Intelligence Strategy at Canadian Tire HBR case study mentions - Tire Canadian 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.
Low market penetration in new markets
– Outside its home market of Tire Canadian, firm in the HBR case study Business Intelligence Strategy at Canadian Tire needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Tire Canadian products
– To increase the profitability and margins on the products, Tire Canadian needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Tire Canadian 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Business Intelligence Strategy at Canadian Tire 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 Tire Canadian 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Business Intelligence Strategy at Canadian Tire, it seems that the employees of Tire Canadian 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 Business Intelligence Strategy at Canadian Tire | 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 Business Intelligence Strategy at Canadian Tire are -
Learning at scale
– Online learning technologies has now opened space for Tire Canadian 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.
Better consumer reach
– The expansion of the 5G network will help Tire Canadian to increase its market reach. Tire Canadian 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.
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. Tire Canadian 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. Tire Canadian 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tire Canadian 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 Tire Canadian to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tire Canadian 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.
Developing new processes and practices
– Tire Canadian 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.
Manufacturing automation
– Tire Canadian 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.
Creating value in data economy
– The success of analytics program of Tire Canadian has opened avenues for new revenue streams for the organization in the industry. This can help Tire Canadian to build a more holistic ecosystem as suggested in the Business Intelligence Strategy at Canadian Tire case study. Tire Canadian can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Tire Canadian can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Business Intelligence Strategy at Canadian Tire 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.
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. Tire Canadian can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Tire Canadian 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tire Canadian can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Tire Canadian 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 Business Intelligence Strategy at Canadian Tire - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tire Canadian to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Business Intelligence Strategy at Canadian Tire External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Business Intelligence Strategy at Canadian Tire are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tire Canadian with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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 Tire Canadian.
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. Tire Canadian 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
– Tire Canadian 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.
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 Tire Canadian in the Technology & Operations sector and impact the bottomline of the organization.
Environmental challenges
– Tire Canadian 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. Tire Canadian can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tire Canadian 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 Business Intelligence Strategy at Canadian Tire .
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. Tire Canadian needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Business Intelligence Strategy at Canadian Tire, Tire Canadian 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tire Canadian 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.
Consumer confidence and its impact on Tire Canadian 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.
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 Tire Canadian business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Business Intelligence Strategy at Canadian Tire 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 Business Intelligence Strategy at Canadian Tire 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 Business Intelligence Strategy at Canadian Tire 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 Business Intelligence Strategy at Canadian Tire 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 Business Intelligence Strategy at Canadian Tire 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 Tire Canadian needs to make to build a sustainable competitive advantage.
