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 - – wage bills are increasing, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, 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 -

Organizational Resilience of Opinion Leaders

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Opinion Leaders does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

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.

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.

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.

Ability to lead change in Sales & Marketing field

– Opinion Leaders 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 Opinion Leaders in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Superior customer experience

– The customer experience strategy of Opinion Leaders in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Sustainable margins compare to other players in Sales & Marketing industry

– Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services firm has clearly differentiated products in the market place. This has enabled Opinion Leaders to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Opinion Leaders to invest into research and development (R&D) and innovation.

Low bargaining power of suppliers

– Suppliers of Opinion Leaders in the sector have low bargaining power. Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Opinion Leaders to manage not only supply disruptions but also source products at highly competitive prices.

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.

Successful track record of launching new products

– Opinion Leaders has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Opinion Leaders 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.

High switching costs

– The high switching costs that Opinion Leaders has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Digital Transformation in Sales & Marketing segment

- digital transformation varies from industry to industry. For Opinion Leaders digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Opinion Leaders has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

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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 -

Products dominated business model

– Even though Opinion Leaders 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 - Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services should strive to include more intangible value offerings along with its core products and services.

No frontier risks strategy

– After analyzing the HBR case study Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services, it seems that company is thinking about the frontier risks that can impact Sales & Marketing 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.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services, in the dynamic environment Opinion Leaders has struggled to respond to the nimble upstart competition. Opinion Leaders has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

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.

Aligning sales with marketing

– It come across in the case study Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services 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 Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services can leverage the sales team experience to cultivate customer relationships as Opinion Leaders is planning to shift buying processes online.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services 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 Opinion Leaders has relatively successful track record of launching new products.

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 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 Opinion Leaders supply chain. Even after few cautionary changes mentioned in the HBR case study - Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Opinion Leaders vulnerable to further global disruptions in South East Asia.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services, it seems that the employees of Opinion Leaders 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.

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.

Interest costs

– Compare to the competition, Opinion Leaders has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

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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 -

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.

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.

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.

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.

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.

Developing new processes and practices

– Opinion Leaders can develop new processes and procedures in Sales & Marketing 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.

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.

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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Opinion Leaders 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.

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.

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.

Building a culture of innovation

– managers at Opinion Leaders can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.

Loyalty marketing

– Opinion Leaders 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.

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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 -

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.

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 Opinion Leaders business can come under increasing regulations regarding data privacy, data security, etc.

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 .

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 Opinion Leaders in the Sales & Marketing sector and impact the bottomline of the organization.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Opinion Leaders 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 Using Online Opinion Leaders to Promote the Hedonic and Utilitarian Value of Products and Services .

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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Opinion Leaders in the Sales & Marketing industry. The Sales & Marketing 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.

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.

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.

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.

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.

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.

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.

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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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