Swot Analysis of "Agoda: People Analytics and Business Culture (B)" written by Kenneth Goh, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that W17429 Agoda facing as an external strategic factors. Some of the topics covered in Agoda: People Analytics and Business Culture (B) case study are - Strategic Management Strategies, Leadership, Organizational structure and Organizational Development.
Some of the macro environment factors that can be used to understand the Agoda: People Analytics and Business Culture (B) casestudy better are - – cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, 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, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Agoda: People Analytics and Business Culture (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Agoda: People Analytics and Business Culture (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the W17429 Agoda, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which W17429 Agoda 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 Agoda: People Analytics and Business Culture (B) can be done for the following purposes –
1. Strategic planning using facts provided in Agoda: People Analytics and Business Culture (B) case study
2. Improving business portfolio management of W17429 Agoda
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of W17429 Agoda
Strengths Agoda: People Analytics and Business Culture (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of W17429 Agoda in Agoda: People Analytics and Business Culture (B) Harvard Business Review case study are -
Learning organization
- W17429 Agoda 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 W17429 Agoda is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Agoda: People Analytics and Business Culture (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– W17429 Agoda is one of the most innovative firm in sector. Manager in Agoda: People Analytics and Business Culture (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the W17429 Agoda 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.
Low bargaining power of suppliers
– Suppliers of W17429 Agoda in the sector have low bargaining power. Agoda: People Analytics and Business Culture (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps W17429 Agoda to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– W17429 Agoda has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. W17429 Agoda 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.
Strong track record of project management
– W17429 Agoda is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– W17429 Agoda 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 Kenneth Goh, Ken Mark 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.
Ability to lead change in Organizational Development field
– W17429 Agoda 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 W17429 Agoda 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
– W17429 Agoda is one of the leading recruiters in the industry. Managers in the Agoda: People Analytics and Business Culture (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.
High brand equity
– W17429 Agoda has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled W17429 Agoda to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– W17429 Agoda is present in almost all the verticals within the industry. This has provided firm in Agoda: People Analytics and Business Culture (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.
Superior customer experience
– The customer experience strategy of W17429 Agoda in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Agoda: People Analytics and Business Culture (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Agoda: People Analytics and Business Culture (B) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Agoda: People Analytics and Business Culture (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 W17429 Agoda has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Agoda: People Analytics and Business Culture (B) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract W17429 Agoda 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, W17429 Agoda is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Agoda: People Analytics and Business Culture (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.
Slow decision making process
– As mentioned earlier in the report, W17429 Agoda 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. W17429 Agoda 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.
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 W17429 Agoda supply chain. Even after few cautionary changes mentioned in the HBR case study - Agoda: People Analytics and Business Culture (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left W17429 Agoda vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Agoda: People Analytics and Business Culture (B), in the dynamic environment W17429 Agoda has struggled to respond to the nimble upstart competition. W17429 Agoda has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Agoda: People Analytics and Business Culture (B), it seems that the employees of W17429 Agoda 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.
No frontier risks strategy
– After analyzing the HBR case study Agoda: People Analytics and Business Culture (B), it seems that company is thinking about the frontier risks that can impact Organizational Development 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.
Workers concerns about automation
– As automation is fast increasing in the segment, W17429 Agoda 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.
Need for greater diversity
– W17429 Agoda 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.
Low market penetration in new markets
– Outside its home market of W17429 Agoda, firm in the HBR case study Agoda: People Analytics and Business Culture (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Agoda: People Analytics and Business Culture (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 Agoda: People Analytics and Business Culture (B) are -
Manufacturing automation
– W17429 Agoda can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, W17429 Agoda 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, Agoda: People Analytics and Business Culture (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– W17429 Agoda 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.
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 W17429 Agoda in the consumer business. Now W17429 Agoda 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, W17429 Agoda 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for W17429 Agoda 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 W17429 Agoda to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– W17429 Agoda can develop new processes and procedures in Organizational Development 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. W17429 Agoda can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. W17429 Agoda can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, W17429 Agoda is facing challenges because of the dominance of functional experts in the organization. Agoda: People Analytics and Business Culture (B) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for W17429 Agoda in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of W17429 Agoda has opened avenues for new revenue streams for the organization in the industry. This can help W17429 Agoda to build a more holistic ecosystem as suggested in the Agoda: People Analytics and Business Culture (B) case study. W17429 Agoda can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– W17429 Agoda 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.
Threats Agoda: People Analytics and Business Culture (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Agoda: People Analytics and Business Culture (B) are -
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 W17429 Agoda in the Organizational Development industry. The Organizational Development 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.
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 W17429 Agoda.
Stagnating economy with rate increase
– W17429 Agoda 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.
Increasing wage structure of W17429 Agoda
– 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 W17429 Agoda.
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 W17429 Agoda business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– W17429 Agoda 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. W17429 Agoda can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents W17429 Agoda with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– W17429 Agoda high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Agoda: People Analytics and Business Culture (B), W17429 Agoda may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Regulatory challenges
– W17429 Agoda 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 Organizational Development industry regulations.
Consumer confidence and its impact on W17429 Agoda 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 W17429 Agoda in the Organizational Development sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Agoda: People Analytics and Business Culture (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 Agoda: People Analytics and Business Culture (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 Agoda: People Analytics and Business Culture (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 Agoda: People Analytics and Business Culture (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 Agoda: People Analytics and Business Culture (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 W17429 Agoda needs to make to build a sustainable competitive advantage.