Customer Relationships Evolve - So Must Your CRM Strategy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Customer Relationships Evolve - So Must Your CRM Strategy
Customer relationships can evolve through four stages -they can be transactional, transitional, communal, or damaged. Understanding each of these stages, using them to classify customer relationships, and tailoring CRM efforts accordingly can enable your company to better deploy its limited CRM dollars. Not all outreach efforts work equally well in all stages of a relationship. And without this kind of tailoring, you're likely wasting some of your CRM budget.
Swot Analysis of "Customer Relationships Evolve - So Must Your CRM Strategy" written by Jonathan Z. Zhang, George F. Watson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Crm Tailoring facing as an external strategic factors. Some of the topics covered in Customer Relationships Evolve - So Must Your CRM Strategy case study are - Strategic Management Strategies, Managing people and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Customer Relationships Evolve - So Must Your CRM Strategy casestudy better are - – there is backlash against globalization, technology disruption, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing household debt because of falling income levels, wage bills are increasing,
geopolitical disruptions, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Customer Relationships Evolve - So Must Your CRM Strategy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Customer Relationships Evolve - So Must Your CRM Strategy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Crm Tailoring, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Crm Tailoring 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 Customer Relationships Evolve - So Must Your CRM Strategy can be done for the following purposes –
1. Strategic planning using facts provided in Customer Relationships Evolve - So Must Your CRM Strategy case study
2. Improving business portfolio management of Crm Tailoring
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 Crm Tailoring
Strengths Customer Relationships Evolve - So Must Your CRM Strategy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Crm Tailoring in Customer Relationships Evolve - So Must Your CRM Strategy Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Crm Tailoring in the sector have low bargaining power. Customer Relationships Evolve - So Must Your CRM Strategy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Crm Tailoring to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Crm Tailoring has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Crm Tailoring 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.
Training and development
– Crm Tailoring has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Customer Relationships Evolve - So Must Your CRM Strategy 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Customer Relationships Evolve - So Must Your CRM Strategy firm has clearly differentiated products in the market place. This has enabled Crm Tailoring to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Crm Tailoring to invest into research and development (R&D) and innovation.
Innovation driven organization
– Crm Tailoring is one of the most innovative firm in sector. Manager in Customer Relationships Evolve - So Must Your CRM Strategy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Crm Tailoring in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Crm Tailoring is one of the leading recruiters in the industry. Managers in the Customer Relationships Evolve - So Must Your CRM Strategy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Crm Tailoring 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 Customer Relationships Evolve - So Must Your CRM Strategy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Customer Relationships Evolve - So Must Your CRM Strategy 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.
Analytics focus
– Crm Tailoring 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 Jonathan Z. Zhang, George F. Watson 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.
Cross disciplinary teams
– Horizontal connected teams at the Crm Tailoring 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.
Ability to lead change in Strategy & Execution field
– Crm Tailoring 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 Crm Tailoring in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Customer Relationships Evolve - So Must Your CRM Strategy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Customer Relationships Evolve - So Must Your CRM Strategy are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Customer Relationships Evolve - So Must Your CRM Strategy 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 Crm Tailoring has relatively successful track record of launching new products.
Need for greater diversity
– Crm Tailoring 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.
Products dominated business model
– Even though Crm Tailoring 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 - Customer Relationships Evolve - So Must Your CRM Strategy should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Customer Relationships Evolve - So Must Your CRM Strategy, it seems that the employees of Crm Tailoring 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Jonathan Z. Zhang, George F. Watson suggests that, Crm Tailoring 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Crm Tailoring 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.
No frontier risks strategy
– After analyzing the HBR case study Customer Relationships Evolve - So Must Your CRM Strategy, 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.
Aligning sales with marketing
– It come across in the case study Customer Relationships Evolve - So Must Your CRM Strategy 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 Customer Relationships Evolve - So Must Your CRM Strategy can leverage the sales team experience to cultivate customer relationships as Crm Tailoring is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Crm Tailoring, firm in the HBR case study Customer Relationships Evolve - So Must Your CRM Strategy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Customer Relationships Evolve - So Must Your CRM Strategy, in the dynamic environment Crm Tailoring has struggled to respond to the nimble upstart competition. Crm Tailoring has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Crm Tailoring supply chain. Even after few cautionary changes mentioned in the HBR case study - Customer Relationships Evolve - So Must Your CRM Strategy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Crm Tailoring vulnerable to further global disruptions in South East Asia.
Opportunities Customer Relationships Evolve - So Must Your CRM Strategy | 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 Customer Relationships Evolve - So Must Your CRM Strategy are -
Better consumer reach
– The expansion of the 5G network will help Crm Tailoring to increase its market reach. Crm Tailoring 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.
Using analytics as competitive advantage
– Crm Tailoring 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 Customer Relationships Evolve - So Must Your CRM Strategy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Crm Tailoring to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Crm Tailoring 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Crm Tailoring is facing challenges because of the dominance of functional experts in the organization. Customer Relationships Evolve - So Must Your CRM Strategy 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.
Buying journey improvements
– Crm Tailoring can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Customer Relationships Evolve - So Must Your CRM Strategy 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Crm Tailoring 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.
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 Crm Tailoring in the consumer business. Now Crm Tailoring can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Crm Tailoring 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.
Learning at scale
– Online learning technologies has now opened space for Crm Tailoring 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.
Developing new processes and practices
– Crm Tailoring 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.
Creating value in data economy
– The success of analytics program of Crm Tailoring has opened avenues for new revenue streams for the organization in the industry. This can help Crm Tailoring to build a more holistic ecosystem as suggested in the Customer Relationships Evolve - So Must Your CRM Strategy case study. Crm Tailoring can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Crm Tailoring 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 Crm Tailoring to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Crm Tailoring 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 Customer Relationships Evolve - So Must Your CRM Strategy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Customer Relationships Evolve - So Must Your CRM Strategy are -
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. Crm Tailoring needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Crm Tailoring 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 Customer Relationships Evolve - So Must Your CRM Strategy .
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 Crm Tailoring business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Crm Tailoring 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.
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 Crm Tailoring is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Crm Tailoring has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Crm Tailoring 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.
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. Crm Tailoring 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
– Crm Tailoring 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Crm Tailoring 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
– Crm Tailoring 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.
Stagnating economy with rate increase
– Crm Tailoring 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Customer Relationships Evolve - So Must Your CRM Strategy, Crm Tailoring 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 .
Weighted SWOT Analysis of Customer Relationships Evolve - So Must Your CRM Strategy 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 Customer Relationships Evolve - So Must Your CRM Strategy 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 Customer Relationships Evolve - So Must Your CRM Strategy 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 Customer Relationships Evolve - So Must Your CRM Strategy 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 Customer Relationships Evolve - So Must Your CRM Strategy 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 Crm Tailoring needs to make to build a sustainable competitive advantage.