Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews
Online customer reviews are an important type of user-generated content, through which consumers share their experiences with products and services in order to help others make informed purchasing decisions. In this article, we discuss the goals of online customer reviews and develop practical, actionable principles that can be used to improve the presentations of customer reviews. We identify four goals-two ultimate, and two intermediate-of online customer reviews. The two ultimate goals are: (1) to assist consumers in making accurate choices, and (2) to reduce the cognitive costs of making such choices. The two intermediate goals are: (1) to help consumers form an unbiased understanding of the product, and (2) to construct a set of evaluative criteria. Drawing on the constructive view of consumer judgment and choice, we present a conceptual model of online-review based consumer judgment and choice. We report principles that will improve the presentation of reviews, and discuss the benefits of the new design over the traditional presentation of online reviews.
Authors :: Qianqian (Ben) Liu, Elena Karahanna, Richard T. Watson
Swot Analysis of "Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews" written by Qianqian (Ben) Liu, Elena Karahanna, Richard T. Watson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Reviews Online facing as an external strategic factors. Some of the topics covered in Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews case study are - Strategic Management Strategies, Marketing, Social platforms and Technology & Operations.
Some of the macro environment factors that can be used to understand the Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews casestudy better are - – supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, geopolitical disruptions, there is increasing trade war between United States & China, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion,
increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Reviews Online, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Reviews Online 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 Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews can be done for the following purposes –
1. Strategic planning using facts provided in Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews case study
2. Improving business portfolio management of Reviews Online
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 Reviews Online
Strengths Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Reviews Online in Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Reviews Online 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.
Highly skilled collaborators
– Reviews Online 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 Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Reviews Online in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Reviews Online has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Reviews Online 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.
Ability to lead change in Technology & Operations field
– Reviews Online 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 Reviews Online in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Reviews Online is one of the leading recruiters in the industry. Managers in the Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Reviews Online 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 Reviews Online is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Technology & Operations industry
– Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews firm has clearly differentiated products in the market place. This has enabled Reviews Online to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Reviews Online to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews 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.
Analytics focus
– Reviews Online 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 Qianqian (Ben) Liu, Elena Karahanna, 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.
Training and development
– Reviews Online has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews 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.
Effective Research and Development (R&D)
– Reviews Online has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews, it seems that the employees of Reviews Online 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 dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Reviews Online supply chain. Even after few cautionary changes mentioned in the HBR case study - Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Reviews Online vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Reviews Online 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.
Products dominated business model
– Even though Reviews Online 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 - Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews, in the dynamic environment Reviews Online has struggled to respond to the nimble upstart competition. Reviews Online has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Reviews Online is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Reviews Online needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Reviews Online to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Reviews Online is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Reviews Online 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.
Aligning sales with marketing
– It come across in the case study Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews 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 Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews can leverage the sales team experience to cultivate customer relationships as Reviews Online is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews, is just above the industry average. Reviews Online 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.
No frontier risks strategy
– After analyzing the HBR case study Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews, 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.
Opportunities Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews | 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 Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews 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. Reviews Online can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Reviews Online in the consumer business. Now Reviews Online can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Reviews Online has opened avenues for new revenue streams for the organization in the industry. This can help Reviews Online to build a more holistic ecosystem as suggested in the Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews case study. Reviews Online can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Reviews Online 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.
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. Reviews Online 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. Reviews Online 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.
Learning at scale
– Online learning technologies has now opened space for Reviews Online 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Reviews Online 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.
Using analytics as competitive advantage
– Reviews Online 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 Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Reviews Online to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Reviews Online 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
– Reviews Online 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.
Building a culture of innovation
– managers at Reviews Online 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Reviews Online is facing challenges because of the dominance of functional experts in the organization. Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Reviews Online can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews are -
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.
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 Reviews Online 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 Reviews Online in the Technology & Operations sector and impact the bottomline of the organization.
Increasing wage structure of Reviews Online
– 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 Reviews Online.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews, Reviews Online 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 .
Shortening product life cycle
– it is one of the major threat that Reviews Online is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Reviews Online 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.
Consumer confidence and its impact on Reviews Online 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Reviews Online 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, Reviews Online 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 Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews .
Stagnating economy with rate increase
– Reviews Online can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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.
Environmental challenges
– Reviews Online 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. Reviews Online can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Weighted SWOT Analysis of Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews 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 Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews 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 Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews 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 Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews 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 Unveiling User-Generated Content: Designing Websites to Best Present Customer Reviews 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 Reviews Online needs to make to build a sustainable competitive advantage.
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