Why Strategy is Key for Successful Social Media Sales SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Why Strategy is Key for Successful Social Media Sales
Many successful companies spend substantial time and effort engaging with potential consumers on social media sites. They determine how consumers spend their time online and develop interesting content to increase awareness and enjoyment of the brand-often only to lose those potential customers because the purchase process becomes too difficult once consumers have decided to buy the product. New technology recently introduced by third-party vendors allows companies to offer a sales option directly on social media websites such as Facebook and Instagram. In this article, we present the effects on the consumer decision process created by the 'Buy Now' option across the consideration, evaluation, purchase, and post-purchase stages. We compare and contrast three distinct decision models: (1) traditional media only, (2) traditional media and social media with only a communication capability, and (3) traditional media and social media with the added function of immediate purchase. We argue that though the possibility of buying on social media will decrease the number of brands considered and evaluated, the number of purchases and amount of brand advocacy will increase significantly due to the ease of purchase. We conclude with some recommendations on future research.
Swot Analysis of "Why Strategy is Key for Successful Social Media Sales" written by Joan Lindsey-Mullikin, Norm Borin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Media Purchase facing as an external strategic factors. Some of the topics covered in Why Strategy is Key for Successful Social Media Sales case study are - Strategic Management Strategies, Customers, Sales, Social platforms and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Why Strategy is Key for Successful Social Media Sales casestudy better are - – digital marketing is dominated by two big players Facebook and Google, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, wage bills are increasing, central banks are concerned over increasing inflation, increasing energy prices,
competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Why Strategy is Key for Successful Social Media Sales
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Why Strategy is Key for Successful Social Media Sales case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Media Purchase, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Media Purchase 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 Why Strategy is Key for Successful Social Media Sales can be done for the following purposes –
1. Strategic planning using facts provided in Why Strategy is Key for Successful Social Media Sales case study
2. Improving business portfolio management of Media Purchase
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Media Purchase
Strengths Why Strategy is Key for Successful Social Media Sales | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Media Purchase in Why Strategy is Key for Successful Social Media Sales Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Media Purchase in the sector have low bargaining power. Why Strategy is Key for Successful Social Media Sales has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Media Purchase to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Media Purchase 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 Media Purchase is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Why Strategy is Key for Successful Social Media Sales Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Media Purchase has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Why Strategy is Key for Successful Social Media Sales HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Media Purchase has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Why Strategy is Key for Successful Social Media Sales Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Effective Research and Development (R&D)
– Media Purchase 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 Why Strategy is Key for Successful Social Media Sales - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Media Purchase 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 Joan Lindsey-Mullikin, Norm Borin 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.
Strong track record of project management
– Media Purchase 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 lead change in Strategy & Execution field
– Media Purchase 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 Media Purchase in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Media Purchase has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Media Purchase 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.
Diverse revenue streams
– Media Purchase is present in almost all the verticals within the industry. This has provided firm in Why Strategy is Key for Successful Social Media Sales 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.
Operational resilience
– The operational resilience strategy in the Why Strategy is Key for Successful Social Media Sales 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
– Media Purchase has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Media Purchase to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Why Strategy is Key for Successful Social Media Sales | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Why Strategy is Key for Successful Social Media Sales are -
High cash cycle compare to competitors
Media Purchase 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.
Skills based hiring
– The stress on hiring functional specialists at Media Purchase 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.
Low market penetration in new markets
– Outside its home market of Media Purchase, firm in the HBR case study Why Strategy is Key for Successful Social Media Sales 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 Why Strategy is Key for Successful Social Media Sales 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 Media Purchase has relatively successful track record of launching new products.
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 Media Purchase supply chain. Even after few cautionary changes mentioned in the HBR case study - Why Strategy is Key for Successful Social Media Sales, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Media Purchase vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Media Purchase is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Media Purchase needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Media Purchase to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Why Strategy is Key for Successful Social Media Sales, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Need for greater diversity
– Media Purchase 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 Why Strategy is Key for Successful Social Media Sales, in the dynamic environment Media Purchase has struggled to respond to the nimble upstart competition. Media Purchase 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 Media Purchase 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 - Why Strategy is Key for Successful Social Media Sales should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Why Strategy is Key for Successful Social Media Sales 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 Media Purchase 's lucrative customers.
Opportunities Why Strategy is Key for Successful Social Media Sales | 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 Why Strategy is Key for Successful Social Media Sales are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Media Purchase 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, Why Strategy is Key for Successful Social Media Sales, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Media Purchase to increase its market reach. Media Purchase 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Media Purchase is facing challenges because of the dominance of functional experts in the organization. Why Strategy is Key for Successful Social Media Sales 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.
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 Media Purchase 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
– Media Purchase can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Learning at scale
– Online learning technologies has now opened space for Media Purchase 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.
Buying journey improvements
– Media Purchase can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Why Strategy is Key for Successful Social Media Sales 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Media Purchase can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Media Purchase can develop new processes and procedures in Strategy & Execution 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.
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 Media Purchase in the consumer business. Now Media Purchase can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Media Purchase 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 Why Strategy is Key for Successful Social Media Sales - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Media Purchase to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Media Purchase 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 Media Purchase can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Why Strategy is Key for Successful Social Media Sales External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Why Strategy is Key for Successful Social Media Sales are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Media Purchase with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Media Purchase has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Media Purchase needs to keep up with the evolution of technology in the Strategy & Execution 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.
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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Media Purchase can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Why Strategy is Key for Successful Social Media Sales, Media Purchase may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Shortening product life cycle
– it is one of the major threat that Media Purchase is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Media Purchase 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 Why Strategy is Key for Successful Social Media Sales .
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 Media Purchase business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Media Purchase 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. Media Purchase can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
Regulatory challenges
– Media Purchase 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 Strategy & Execution industry regulations.
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. Media Purchase 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
– Media Purchase 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.
Weighted SWOT Analysis of Why Strategy is Key for Successful Social Media Sales 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 Why Strategy is Key for Successful Social Media Sales 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 Why Strategy is Key for Successful Social Media Sales 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 Why Strategy is Key for Successful Social Media Sales 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 Why Strategy is Key for Successful Social Media Sales 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 Media Purchase needs to make to build a sustainable competitive advantage.
