Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services

Research and applied evidence suggest that online opinion leaders are important promoters of products and services. However, managers and firms need to choose which opinion leaders to work with and better understand how to collaborate with those leaders to promote different types of products and services. Online opinion leaders should be used to promote the experiential (hedonic) and functional (utilitarian) value of products and services over different online forums. In this article, we describe how online opinion leaders can serve appeal leadership functions, serve knowledge leadership functions, and take multiple roles (e.g., experts, celebrities, micro-celebrities, micro-influencers, early adopters, market mavens, enthusiasts). We then present a five-stage planning process designed to guide partnerships with online opinion leaders. Specific steps in the process include: planning (setting the objectives of the campaign and the role of online opinion leaders), recognition (identifying influential and relevant online opinion leaders), alignment (matching online opinion leaders and online forums with the products or services promoted), motivation (rewarding online opinion leaders in a way that aligns with their social role), and coordination (negotiating, monitoring, and supporting the influence of the online opinion leaders).

Authors :: Hsin-Chen Lin, Patrick F. Bruning, Hepsi Swarna

Topics :: Sales & Marketing

Tags :: Marketing, Public relations, Social platforms, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services" written by Hsin-Chen Lin, Patrick F. Bruning, Hepsi Swarna includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Opinion Leaders facing as an external strategic factors. Some of the topics covered in Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services case study are - Strategic Management Strategies, Marketing, Public relations, Social platforms and Sales & Marketing.

Some of the macro environment factors that can be used to understand the Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services casestudy better are - – challanges to central banks by blockchain based private currencies, geopolitical disruptions, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, etc

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Introduction to SWOT Analysis of Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Opinion Leaders, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Opinion Leaders 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services can be done for the following purposes –
1. Strategic planning using facts provided in Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services case study
2. Improving business portfolio management of Opinion Leaders
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Opinion Leaders

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Strengths Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Opinion Leaders in Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services Harvard Business Review case study are -

Innovation driven organization

– Opinion Leaders is one of the most innovative firm in sector. Manager in Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Diverse revenue streams

– Opinion Leaders is present in almost all the verticals within the industry. This has provided firm in Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services 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.

Ability to recruit top talent

– Opinion Leaders is one of the leading recruiters in the industry. Managers in the Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Highly skilled collaborators

– Opinion Leaders 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 Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Analytics focus

– Opinion Leaders 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 Hsin-Chen Lin, Patrick F. Bruning, Hepsi Swarna 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

– Opinion Leaders is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Effective Research and Development (R&D)

– Opinion Leaders 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 Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Learning organization

- Opinion Leaders 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 Opinion Leaders is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Operational resilience

– The operational resilience strategy in the Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services 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.

Cross disciplinary teams

– Horizontal connected teams at the Opinion Leaders 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.

Training and development

– Opinion Leaders has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services 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.

High brand equity

– Opinion Leaders has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Opinion Leaders to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

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Weaknesses Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services are -

Workers concerns about automation

– As automation is fast increasing in the segment, Opinion Leaders 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

– Opinion Leaders 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 Opinion Leaders, firm in the HBR case study Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Lack of clear differentiation of Opinion Leaders products

– To increase the profitability and margins on the products, Opinion Leaders needs to provide more differentiated products than what it is currently offering in the marketplace.

High cash cycle compare to competitors

Opinion Leaders has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

High bargaining power of channel partners

– Because of the regulatory requirements, Hsin-Chen Lin, Patrick F. Bruning, Hepsi Swarna suggests that, Opinion Leaders 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 strategic competitive environment developments

– As Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services HBR case study mentions - Opinion Leaders 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.

Skills based hiring

– The stress on hiring functional specialists at Opinion Leaders 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.

Slow decision making process

– As mentioned earlier in the report, Opinion Leaders 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. Opinion Leaders 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.

Capital Spending Reduction

– Even during the low interest decade, Opinion Leaders 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.

Increasing silos among functional specialists

– The organizational structure of Opinion Leaders is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Opinion Leaders needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Opinion Leaders to focus more on services rather than just following the product oriented approach.

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Opportunities Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services | 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 Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services are -

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Opinion Leaders 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 Opinion Leaders to hire the very best people irrespective of their geographical location.

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 Opinion Leaders in the consumer business. Now Opinion Leaders can target international markets with far fewer capital restrictions requirements than the existing system.

Buying journey improvements

– Opinion Leaders can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Opinion Leaders is facing challenges because of the dominance of functional experts in the organization. Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services 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.

Creating value in data economy

– The success of analytics program of Opinion Leaders has opened avenues for new revenue streams for the organization in the industry. This can help Opinion Leaders to build a more holistic ecosystem as suggested in the Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services case study. Opinion Leaders can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Opinion Leaders 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, Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services, 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 Opinion Leaders to increase its market reach. Opinion Leaders 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.

Leveraging digital technologies

– Opinion Leaders 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.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Opinion Leaders can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Opinion Leaders can use these opportunities to build new business models that can help the communities that Opinion Leaders operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.

Using analytics as competitive advantage

– Opinion Leaders 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 Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Opinion Leaders to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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. Opinion Leaders can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Manufacturing automation

– Opinion Leaders can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

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Threats Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services are -

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.

Consumer confidence and its impact on Opinion Leaders 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 acceleration in Forth Industrial Revolution

– Opinion Leaders has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Opinion Leaders needs to keep up with the evolution of technology in the Sales & Marketing 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Opinion Leaders with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services, Opinion Leaders may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .

Regulatory challenges

– Opinion Leaders needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.

Stagnating economy with rate increase

– Opinion Leaders 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.

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.

High dependence on third party suppliers

– Opinion Leaders 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.

Increasing wage structure of Opinion Leaders

– 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 Opinion Leaders.

Environmental challenges

– Opinion Leaders 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. Opinion Leaders can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.

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 Opinion Leaders.

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. Opinion Leaders 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.

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Weighted SWOT Analysis of Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services 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 Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services 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 Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services 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 Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services 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 Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services 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 Opinion Leaders needs to make to build a sustainable competitive advantage.

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