Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience

While there are a number of courses focused on helping students create and perfect innovative new products, there remains a gap regarding how to create and perfect the idea-or the positioning behind the product. The reality is that it is significantly more difficult than most people think to create a superior positioning concept. In addition, most sophisticated marketing organizations begin with a winning idea before they begin to deploy R&D resources to create a product. This note helps students understand what a positioning concept is, the critical elements of a testable positioning concept, and the attributes of those concepts that tend to be superior to those of their rivals. It is useful for undergraduate and graduate students interested in marketing, sales, brand management, and entrepreneurship.

Authors :: Kimberly A Whitler

Topics :: Sales & Marketing

Tags :: Product development, Strategy, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience" written by Kimberly A Whitler includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Positioning Concept facing as an external strategic factors. Some of the topics covered in Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience case study are - Strategic Management Strategies, Product development, Strategy and Sales & Marketing.

Some of the macro environment factors that can be used to understand the Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience casestudy better are - – technology disruption, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, there is backlash against globalization, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc

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Introduction to SWOT Analysis of Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Positioning Concept, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Positioning Concept 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 Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience can be done for the following purposes –
1. Strategic planning using facts provided in Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience case study
2. Improving business portfolio management of Positioning Concept
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 Positioning Concept

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Strengths Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Positioning Concept in Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience Harvard Business Review case study are -

High switching costs

– The high switching costs that Positioning Concept 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.

Organizational Resilience of Positioning Concept

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

Sustainable margins compare to other players in Sales & Marketing industry

– Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience firm has clearly differentiated products in the market place. This has enabled Positioning Concept to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Positioning Concept to invest into research and development (R&D) and innovation.

Ability to recruit top talent

– Positioning Concept is one of the leading recruiters in the industry. Managers in the Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Strong track record of project management

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

Learning organization

- Positioning Concept 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 Positioning Concept is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Analytics focus

– Positioning Concept 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 Kimberly A Whitler 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 Positioning Concept 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.

Highly skilled collaborators

– Positioning Concept 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 Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Diverse revenue streams

– Positioning Concept is present in almost all the verticals within the industry. This has provided firm in Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience 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.

Digital Transformation in Sales & Marketing segment

- digital transformation varies from industry to industry. For Positioning Concept digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Positioning Concept 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.

Low bargaining power of suppliers

– Suppliers of Positioning Concept in the sector have low bargaining power. Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Positioning Concept to manage not only supply disruptions but also source products at highly competitive prices.

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Weaknesses Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience are -

Skills based hiring

– The stress on hiring functional specialists at Positioning Concept 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Positioning Concept 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 Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience, 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.

Need for greater diversity

– Positioning Concept 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.

Slow decision making process

– As mentioned earlier in the report, Positioning Concept 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. Positioning Concept 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.

Interest costs

– Compare to the competition, Positioning Concept 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.

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 Positioning Concept supply chain. Even after few cautionary changes mentioned in the HBR case study - Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Positioning Concept vulnerable to further global disruptions in South East Asia.

High cash cycle compare to competitors

Positioning Concept 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.

Products dominated business model

– Even though Positioning Concept 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 - Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience should strive to include more intangible value offerings along with its core products and services.

Slow to strategic competitive environment developments

– As Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience HBR case study mentions - Positioning Concept 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.

Capital Spending Reduction

– Even during the low interest decade, Positioning Concept 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.

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Opportunities Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience | 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 Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience are -

Using analytics as competitive advantage

– Positioning Concept 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 Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Positioning Concept to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Positioning Concept 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, Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Increase in government spending

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

Leveraging digital technologies

– Positioning Concept 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.

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. Positioning Concept can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Positioning Concept can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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 Positioning Concept 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.

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. Positioning Concept can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Manufacturing automation

– Positioning Concept 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Positioning Concept 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 Positioning Concept in the consumer business. Now Positioning Concept can target international markets with far fewer capital restrictions requirements than the existing system.

Remote work and new talent hiring opportunities

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

Learning at scale

– Online learning technologies has now opened space for Positioning Concept 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.

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Threats Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience are -

Shortening product life cycle

– it is one of the major threat that Positioning Concept is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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.

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 Positioning Concept.

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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience, Positioning Concept 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

– Positioning Concept 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.

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. Positioning Concept 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.

Barriers of entry lowering

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

Consumer confidence and its impact on Positioning Concept 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.

Increasing wage structure of Positioning Concept

– 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 Positioning Concept.

Technology acceleration in Forth Industrial Revolution

– Positioning Concept has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Positioning Concept 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.

Environmental challenges

– Positioning Concept 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. Positioning Concept 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 Positioning Concept 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.

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Weighted SWOT Analysis of Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience 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 Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience 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 Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience 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 Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience 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 Developing a Superior Positioning Concept for a Product, Service, Idea, or Experience 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 Positioning Concept needs to make to build a sustainable competitive advantage.

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