Swot Analysis of "Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B)" written by Roy D. Shapiro, Michael D. Watkins, Susan Rosegrant includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Delight Universal facing as an external strategic factors. Some of the topics covered in Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) case study are - Strategic Management Strategies, Customers, Motivating people, Performance measurement, Product development, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) casestudy better are - – increasing transportation and logistics costs, wage bills are increasing, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, increasing commodity prices, challanges to central banks by blockchain based private currencies,
competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Delight Universal, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Delight Universal 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 Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) can be done for the following purposes –
1. Strategic planning using facts provided in Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) case study
2. Improving business portfolio management of Delight Universal
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 Delight Universal
Strengths Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Delight Universal in Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) Harvard Business Review case study are -
Innovation driven organization
– Delight Universal is one of the most innovative firm in sector. Manager in Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Delight Universal are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to lead change in Technology & Operations field
– Delight Universal 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 Delight Universal 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
– Delight Universal has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Delight Universal 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.
Learning organization
- Delight Universal 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 Delight Universal is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) 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.
Sustainable margins compare to other players in Technology & Operations industry
– Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) firm has clearly differentiated products in the market place. This has enabled Delight Universal to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Delight Universal to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Delight Universal in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Delight Universal 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 Delight Universal in the sector have low bargaining power. Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Delight Universal to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Delight Universal 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 Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Delight Universal
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Delight Universal does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B), in the dynamic environment Delight Universal has struggled to respond to the nimble upstart competition. Delight Universal has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B), it seems that the employees of Delight Universal 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.
High cash cycle compare to competitors
Delight Universal 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B), is just above the industry average. Delight Universal 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 operating costs
– Compare to the competitors, firm in the HBR case study Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) 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 Delight Universal 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Roy D. Shapiro, Michael D. Watkins, Susan Rosegrant suggests that, Delight Universal 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.
Aligning sales with marketing
– It come across in the case study Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) 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 Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) can leverage the sales team experience to cultivate customer relationships as Delight Universal is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Delight Universal is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Delight Universal needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Delight Universal to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Delight Universal 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.
Skills based hiring
– The stress on hiring functional specialists at Delight Universal has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Delight Universal 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.
Opportunities Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) | 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 Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) are -
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. Delight Universal can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Delight Universal 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 Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Delight Universal to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Delight Universal 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Delight Universal 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 Delight Universal to hire the very best people irrespective of their geographical location.
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. Delight Universal can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Delight Universal 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Delight Universal 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, Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Delight Universal 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 Delight Universal to increase its market reach. Delight Universal 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
– Delight Universal can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Delight Universal 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.
Building a culture of innovation
– managers at Delight Universal 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.
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. Delight Universal 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. Delight Universal 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.
Threats Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) are -
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. Delight Universal 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.
Environmental challenges
– Delight Universal 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. Delight Universal can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Delight Universal 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.
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. Delight Universal needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Delight Universal 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 Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) .
Regulatory challenges
– Delight Universal 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 Delight Universal in the Technology & Operations sector and impact the bottomline 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.
Shortening product life cycle
– it is one of the major threat that Delight Universal is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Delight Universal business can come under increasing regulations regarding data privacy, data security, etc.
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. Delight Universal can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Delight Universal.
Weighted SWOT Analysis of Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) 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 Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) 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 Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) 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 Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) 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 Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (B) 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 Delight Universal needs to make to build a sustainable competitive advantage.
