Centerbridge Partners and Great Wolf Resorts (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Centerbridge Partners and Great Wolf Resorts (B)
The case examines the aftermath of the March 2015 Centerbridge Partners acquisition of Great Wolf Resorts, a North American family-oriented indoor water parks and hotel operator, from a private equity (PE) competitor, Apollo Global Management.
Swot Analysis of "Centerbridge Partners and Great Wolf Resorts (B)" written by Josh Lerner, John Dionne, Amram Migdal includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Centerbridge Wolf facing as an external strategic factors. Some of the topics covered in Centerbridge Partners and Great Wolf Resorts (B) case study are - Strategic Management Strategies, Costs, Entrepreneurial finance, Financial analysis, Financial markets, Negotiations and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Centerbridge Partners and Great Wolf Resorts (B) casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, etc
Introduction to SWOT Analysis of Centerbridge Partners and Great Wolf Resorts (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Centerbridge Partners and Great Wolf Resorts (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Centerbridge Wolf, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Centerbridge Wolf 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 Centerbridge Partners and Great Wolf Resorts (B) can be done for the following purposes –
1. Strategic planning using facts provided in Centerbridge Partners and Great Wolf Resorts (B) case study
2. Improving business portfolio management of Centerbridge Wolf
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Centerbridge Wolf
Strengths Centerbridge Partners and Great Wolf Resorts (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Centerbridge Wolf in Centerbridge Partners and Great Wolf Resorts (B) Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Centerbridge Partners and Great Wolf Resorts (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.
High brand equity
– Centerbridge Wolf has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Centerbridge Wolf to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Centerbridge Wolf is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Centerbridge Wolf is one of the leading recruiters in the industry. Managers in the Centerbridge Partners and Great Wolf Resorts (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Centerbridge Wolf 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 Josh Lerner, John Dionne, Amram Migdal 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.
Low bargaining power of suppliers
– Suppliers of Centerbridge Wolf in the sector have low bargaining power. Centerbridge Partners and Great Wolf Resorts (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Centerbridge Wolf to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Centerbridge Wolf is one of the most innovative firm in sector. Manager in Centerbridge Partners and Great Wolf Resorts (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Centerbridge Wolf digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Centerbridge Wolf 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.
High switching costs
– The high switching costs that Centerbridge Wolf 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.
Diverse revenue streams
– Centerbridge Wolf is present in almost all the verticals within the industry. This has provided firm in Centerbridge Partners and Great Wolf Resorts (B) 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Centerbridge Partners and Great Wolf Resorts (B) firm has clearly differentiated products in the market place. This has enabled Centerbridge Wolf to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Centerbridge Wolf to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Centerbridge Wolf 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 Centerbridge Partners and Great Wolf Resorts (B) - 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 Centerbridge Partners and Great Wolf Resorts (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Centerbridge Partners and Great Wolf Resorts (B) are -
Slow to strategic competitive environment developments
– As Centerbridge Partners and Great Wolf Resorts (B) HBR case study mentions - Centerbridge Wolf 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.
Capital Spending Reduction
– Even during the low interest decade, Centerbridge Wolf has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Centerbridge Wolf 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Centerbridge Partners and Great Wolf Resorts (B) 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 Centerbridge Wolf has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Centerbridge Partners and Great Wolf Resorts (B), in the dynamic environment Centerbridge Wolf has struggled to respond to the nimble upstart competition. Centerbridge Wolf has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Centerbridge Wolf 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 - Centerbridge Partners and Great Wolf Resorts (B) should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Centerbridge Wolf 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. Centerbridge Wolf 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.
Aligning sales with marketing
– It come across in the case study Centerbridge Partners and Great Wolf Resorts (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 Centerbridge Partners and Great Wolf Resorts (B) can leverage the sales team experience to cultivate customer relationships as Centerbridge Wolf is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Centerbridge Wolf 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 bargaining power of channel partners
– Because of the regulatory requirements, Josh Lerner, John Dionne, Amram Migdal suggests that, Centerbridge Wolf 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Centerbridge Wolf is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Centerbridge Partners and Great Wolf Resorts (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Centerbridge Partners and Great Wolf Resorts (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 Centerbridge Partners and Great Wolf Resorts (B) are -
Learning at scale
– Online learning technologies has now opened space for Centerbridge Wolf 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Centerbridge Wolf can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Centerbridge Wolf 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 Centerbridge Wolf to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Centerbridge Wolf 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.
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. Centerbridge Wolf can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Centerbridge Wolf to increase its market reach. Centerbridge Wolf 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.
Creating value in data economy
– The success of analytics program of Centerbridge Wolf has opened avenues for new revenue streams for the organization in the industry. This can help Centerbridge Wolf to build a more holistic ecosystem as suggested in the Centerbridge Partners and Great Wolf Resorts (B) case study. Centerbridge Wolf can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Centerbridge Wolf 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. Centerbridge Wolf 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.
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 Centerbridge Wolf 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Centerbridge Wolf 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Centerbridge Wolf can use these opportunities to build new business models that can help the communities that Centerbridge Wolf operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Buying journey improvements
– Centerbridge Wolf can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Centerbridge Partners and Great Wolf Resorts (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.
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 Centerbridge Wolf in the consumer business. Now Centerbridge Wolf can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Centerbridge Partners and Great Wolf Resorts (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Centerbridge Partners and Great Wolf Resorts (B) are -
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 Centerbridge Wolf in the Finance & Accounting sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Centerbridge Partners and Great Wolf Resorts (B), Centerbridge Wolf may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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. Centerbridge Wolf needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Centerbridge Wolf with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Centerbridge Wolf 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.
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. Centerbridge Wolf will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Regulatory challenges
– Centerbridge Wolf 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 Finance & Accounting industry regulations.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Centerbridge Wolf.
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 Centerbridge Wolf business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Centerbridge Wolf 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 Centerbridge Partners and Great Wolf Resorts (B) .
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.
Shortening product life cycle
– it is one of the major threat that Centerbridge Wolf is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Centerbridge Partners and Great Wolf Resorts (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 Centerbridge Partners and Great Wolf Resorts (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 Centerbridge Partners and Great Wolf Resorts (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 Centerbridge Partners and Great Wolf Resorts (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 Centerbridge Partners and Great Wolf Resorts (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 Centerbridge Wolf needs to make to build a sustainable competitive advantage.