Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach

The objective of this note is to provide a set of easy, step-by-step guides for some analytical techniques that are useful in the analysis of cases discussed in the course "Competing and Winning through Customer Information" (CWCI). The instructions that follow use datasets from three of the cases in the course: "Slots, Tables, and All That Jazz: Managing Customer Profitability at the MGM Grand Hotel," HBS No. 106-029, "MercadoLibre.com," HBS No. 106-057, and "Bancaja: Developing Customer Intelligence (A)," HBS No. 107-055. These datasets are available upon request from the author.

Authors :: F. Asis Martinez-Jerez

Topics :: Technology & Operations

Tags :: Data, Financial analysis, IT, Sales, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach" written by F. Asis Martinez-Jerez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Step 106 facing as an external strategic factors. Some of the topics covered in Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach case study are - Strategic Management Strategies, Data, Financial analysis, IT, Sales and Technology & Operations.

Some of the macro environment factors that can be used to understand the Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach casestudy better are - – supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, etc

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Introduction to SWOT Analysis of Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Step 106, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Step 106 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach can be done for the following purposes –
1. Strategic planning using facts provided in Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach case study
2. Improving business portfolio management of Step 106
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 Step 106

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Strengths Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Step 106 in Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach Harvard Business Review case study are -

Cross disciplinary teams

– Horizontal connected teams at the Step 106 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.

Diverse revenue streams

– Step 106 is present in almost all the verticals within the industry. This has provided firm in Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach 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.

Strong track record of project management

– Step 106 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Sustainable margins compare to other players in Technology & Operations industry

– Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach firm has clearly differentiated products in the market place. This has enabled Step 106 to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Step 106 to invest into research and development (R&D) and innovation.

Operational resilience

– The operational resilience strategy in the Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach 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.

High switching costs

– The high switching costs that Step 106 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.

Ability to lead change in Technology & Operations field

– Step 106 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 Step 106 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Effective Research and Development (R&D)

– Step 106 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 Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Successful track record of launching new products

– Step 106 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Step 106 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.

Digital Transformation in Technology & Operations segment

- digital transformation varies from industry to industry. For Step 106 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Step 106 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.

Low bargaining power of suppliers

– Suppliers of Step 106 in the sector have low bargaining power. Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Step 106 to manage not only supply disruptions but also source products at highly competitive prices.

Organizational Resilience of Step 106

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Step 106 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

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Weaknesses Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach are -

Low market penetration in new markets

– Outside its home market of Step 106, firm in the HBR case study Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Step 106 has relatively successful track record of launching new products.

Need for greater diversity

– Step 106 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.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach, in the dynamic environment Step 106 has struggled to respond to the nimble upstart competition. Step 106 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 Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach HBR case study mentions - Step 106 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.

Interest costs

– Compare to the competition, Step 106 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Step 106 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach 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 Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

High operating costs

– Compare to the competitors, firm in the HBR case study Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach 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 Step 106 's lucrative customers.

Lack of clear differentiation of Step 106 products

– To increase the profitability and margins on the products, Step 106 needs to provide more differentiated products than what it is currently offering in the marketplace.

Increasing silos among functional specialists

– The organizational structure of Step 106 is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Step 106 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Step 106 to focus more on services rather than just following the product oriented approach.

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Opportunities Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach | 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 Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach are -

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Step 106 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 Step 106 to hire the very best people irrespective of their geographical location.

Loyalty marketing

– Step 106 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.

Leveraging digital technologies

– Step 106 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Step 106 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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. Step 106 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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 Step 106 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.

Manufacturing automation

– Step 106 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Step 106 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.

Developing new processes and practices

– Step 106 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.

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. Step 106 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. Step 106 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Step 106 is facing challenges because of the dominance of functional experts in the organization. Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Step 106 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, Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Using analytics as competitive advantage

– Step 106 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 Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Step 106 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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Threats Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach are -

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach, Step 106 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 .

Technology acceleration in Forth Industrial Revolution

– Step 106 has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Step 106 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.

Consumer confidence and its impact on Step 106 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.

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 Step 106 in the Technology & Operations sector and impact the bottomline of the organization.

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. Step 106 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.

Environmental challenges

– Step 106 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. Step 106 can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.

Stagnating economy with rate increase

– Step 106 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.

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 Step 106.

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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Step 106 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.

Increasing wage structure of Step 106

– 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 Step 106.

Shortening product life cycle

– it is one of the major threat that Step 106 is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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. Step 106 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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Weighted SWOT Analysis of Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach 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 Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach 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 Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach 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 Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach 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 Basic Techniques for the Analysis of Customer Information Using Excel 2007: A Step-by-Step Approach 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 Step 106 needs to make to build a sustainable competitive advantage.

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