Country Market Collection: A Case of Channel Conflict SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Country Market Collection: A Case of Channel Conflict
Ashton Thyme's, an upscale furniture boutique in Athens, Georgia, has been granted exclusive territory to sell antique-reproduction furniture from Country Market Collection. But a customer has found the same Country Market Collection products Ashton Thyme's carries for a lower price online. The customer offered Ashton Thyme's the opportunity to match the online price, which the manager declined. This situation prompts an angry call from the manager to the owner of Country Market Collection, arguing that sales to websites infringe on Ashton Thyme's exclusive territory rights.
Swot Analysis of "Country Market Collection: A Case of Channel Conflict" written by Kimberly A Whitler, Randle D. Raggio includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Thyme's Ashton facing as an external strategic factors. Some of the topics covered in Country Market Collection: A Case of Channel Conflict case study are - Strategic Management Strategies, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Country Market Collection: A Case of Channel Conflict casestudy better are - – wage bills are increasing, increasing commodity prices, technology disruption, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China,
central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Country Market Collection: A Case of Channel Conflict
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Country Market Collection: A Case of Channel Conflict case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Thyme's Ashton, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Thyme's Ashton 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 Country Market Collection: A Case of Channel Conflict can be done for the following purposes –
1. Strategic planning using facts provided in Country Market Collection: A Case of Channel Conflict case study
2. Improving business portfolio management of Thyme's Ashton
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Thyme's Ashton
Strengths Country Market Collection: A Case of Channel Conflict | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Thyme's Ashton in Country Market Collection: A Case of Channel Conflict Harvard Business Review case study are -
Ability to lead change in Sales & Marketing field
– Thyme's Ashton 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 Thyme's Ashton in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Thyme's Ashton is one of the most innovative firm in sector. Manager in Country Market Collection: A Case of Channel Conflict Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Thyme's Ashton in the sector have low bargaining power. Country Market Collection: A Case of Channel Conflict has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Thyme's Ashton to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Thyme's Ashton 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.
Superior customer experience
– The customer experience strategy of Thyme's Ashton in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Country Market Collection: A Case of Channel Conflict 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 brand equity
– Thyme's Ashton has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Thyme's Ashton to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Thyme's Ashton
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Thyme's Ashton does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Thyme's Ashton 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.
Training and development
– Thyme's Ashton has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Country Market Collection: A Case of Channel Conflict 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.
Learning organization
- Thyme's Ashton 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 Thyme's Ashton is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Country Market Collection: A Case of Channel Conflict Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Thyme's Ashton is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Country Market Collection: A Case of Channel Conflict | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Country Market Collection: A Case of Channel Conflict are -
Lack of clear differentiation of Thyme's Ashton products
– To increase the profitability and margins on the products, Thyme's Ashton needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study Country Market Collection: A Case of Channel Conflict, it seems that company is thinking about the frontier risks that can impact Sales & Marketing 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 cash cycle compare to competitors
Thyme's Ashton 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Country Market Collection: A Case of Channel Conflict 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 Thyme's Ashton has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Kimberly A Whitler, Randle D. Raggio suggests that, Thyme's Ashton 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Country Market Collection: A Case of Channel Conflict, it seems that the employees of Thyme's Ashton 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Thyme's Ashton 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.
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 Thyme's Ashton supply chain. Even after few cautionary changes mentioned in the HBR case study - Country Market Collection: A Case of Channel Conflict, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Thyme's Ashton vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Thyme's Ashton, firm in the HBR case study Country Market Collection: A Case of Channel Conflict needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Thyme's Ashton 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 decision making process
– As mentioned earlier in the report, Thyme's Ashton has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Thyme's Ashton even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Opportunities Country Market Collection: A Case of Channel Conflict | 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 Country Market Collection: A Case of Channel Conflict are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Thyme's Ashton 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, Country Market Collection: A Case of Channel Conflict, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Thyme's Ashton can develop new processes and procedures in Sales & Marketing 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.
Leveraging digital technologies
– Thyme's Ashton 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Thyme's Ashton can use these opportunities to build new business models that can help the communities that Thyme's Ashton operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Thyme's Ashton can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Thyme's Ashton to increase its market reach. Thyme's Ashton 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.
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 Thyme's Ashton in the consumer business. Now Thyme's Ashton can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Thyme's Ashton 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.
Creating value in data economy
– The success of analytics program of Thyme's Ashton has opened avenues for new revenue streams for the organization in the industry. This can help Thyme's Ashton to build a more holistic ecosystem as suggested in the Country Market Collection: A Case of Channel Conflict case study. Thyme's Ashton can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Thyme's Ashton can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Thyme's Ashton is facing challenges because of the dominance of functional experts in the organization. Country Market Collection: A Case of Channel Conflict 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.
Learning at scale
– Online learning technologies has now opened space for Thyme's Ashton to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Loyalty marketing
– Thyme's Ashton 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.
Threats Country Market Collection: A Case of Channel Conflict External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Country Market Collection: A Case of Channel Conflict are -
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 Thyme's Ashton.
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 Thyme's Ashton business can come under increasing regulations regarding data privacy, data security, etc.
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.
Increasing wage structure of Thyme's Ashton
– 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 Thyme's Ashton.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Thyme's Ashton in the Sales & Marketing industry. The Sales & Marketing 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.
Shortening product life cycle
– it is one of the major threat that Thyme's Ashton is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Country Market Collection: A Case of Channel Conflict, Thyme's Ashton may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
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 Thyme's Ashton in the Sales & Marketing 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. Thyme's Ashton 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.
Stagnating economy with rate increase
– Thyme's Ashton 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.
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. Thyme's Ashton needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Regulatory challenges
– Thyme's Ashton 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 Sales & Marketing industry regulations.
Weighted SWOT Analysis of Country Market Collection: A Case of Channel Conflict 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 Country Market Collection: A Case of Channel Conflict 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 Country Market Collection: A Case of Channel Conflict 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 Country Market Collection: A Case of Channel Conflict 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 Country Market Collection: A Case of Channel Conflict 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 Thyme's Ashton needs to make to build a sustainable competitive advantage.