Unlocking Competitiveness Through Scent Names: A Data-Driven Approach SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Unlocking Competitiveness Through Scent Names: A Data-Driven Approach
Naming a product's scent is a key decision. The same scent can be interpreted differently when different names are assigned to it. Thus, choosing the right scent name can increase competitiveness by successfully appealing to desired consumer segments. We propose that such decisions should be data driven (i.e., on the basis of competitors' offerings and consumers' preferences) and provide guidelines on how to assign scent names to products in home care and personal care product categories, focusing on capturing market segments. Based on a large web-based dataset of scented products across multiple brands and categories, this article is the first to construct a typology of scent names empirically: unscented, concrete, abstract, and proprietary. After examining firms' assortments of scented products with different names across 12 categories and comparing them with consumers' preferences concerning such assortments, we identify major gaps. Overall, consumers demand far more unscented products and products with abstract names than currently offered; however, preferences for products with proprietary names are mostly aligned. Strategic recommendations center on naming scented products to better align supply and demand in the scented product market and capture new market opportunities.
Authors :: Hua Meg Meng, Cesar Zamudio, Robert D. Jewell
Swot Analysis of "Unlocking Competitiveness Through Scent Names: A Data-Driven Approach" written by Hua Meg Meng, Cesar Zamudio, Robert D. Jewell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Scent Names facing as an external strategic factors. Some of the topics covered in Unlocking Competitiveness Through Scent Names: A Data-Driven Approach case study are - Strategic Management Strategies, Marketing, Research & development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Unlocking Competitiveness Through Scent Names: A Data-Driven Approach casestudy better are - – technology disruption, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
central banks are concerned over increasing inflation, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Unlocking Competitiveness Through Scent Names: A Data-Driven Approach
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Unlocking Competitiveness Through Scent Names: A Data-Driven Approach case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Scent Names, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Scent Names 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 Unlocking Competitiveness Through Scent Names: A Data-Driven Approach can be done for the following purposes –
1. Strategic planning using facts provided in Unlocking Competitiveness Through Scent Names: A Data-Driven Approach case study
2. Improving business portfolio management of Scent Names
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 Scent Names
Strengths Unlocking Competitiveness Through Scent Names: A Data-Driven Approach | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Scent Names in Unlocking Competitiveness Through Scent Names: A Data-Driven Approach Harvard Business Review case study are -
Analytics focus
– Scent Names 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 Hua Meg Meng, Cesar Zamudio, Robert D. Jewell 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.
Low bargaining power of suppliers
– Suppliers of Scent Names in the sector have low bargaining power. Unlocking Competitiveness Through Scent Names: A Data-Driven Approach has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Scent Names to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Sales & Marketing field
– Scent Names 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 Scent Names in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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.
Learning organization
- Scent Names 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 Scent Names is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Unlocking Competitiveness Through Scent Names: A Data-Driven Approach Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Scent Names is one of the most innovative firm in sector. Manager in Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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
– Scent Names is present in almost all the verticals within the industry. This has provided firm in Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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.
Organizational Resilience of Scent Names
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Scent Names does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Scent Names digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Scent Names 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.
Superior customer experience
– The customer experience strategy of Scent Names in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Scent Names is one of the leading recruiters in the industry. Managers in the Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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
– Scent Names has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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.
Weaknesses Unlocking Competitiveness Through Scent Names: A Data-Driven Approach | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Unlocking Competitiveness Through Scent Names: A Data-Driven Approach are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Unlocking Competitiveness Through Scent Names: A Data-Driven Approach, is just above the industry average. Scent Names needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High operating costs
– Compare to the competitors, firm in the HBR case study Unlocking Competitiveness Through Scent Names: A Data-Driven Approach has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Scent Names 's lucrative customers.
Interest costs
– Compare to the competition, Scent Names 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.
Slow to strategic competitive environment developments
– As Unlocking Competitiveness Through Scent Names: A Data-Driven Approach HBR case study mentions - Scent Names 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Scent Names 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.
Aligning sales with marketing
– It come across in the case study Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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 Unlocking Competitiveness Through Scent Names: A Data-Driven Approach can leverage the sales team experience to cultivate customer relationships as Scent Names is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Scent Names, firm in the HBR case study Unlocking Competitiveness Through Scent Names: A Data-Driven Approach needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Scent Names products
– To increase the profitability and margins on the products, Scent Names needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Unlocking Competitiveness Through Scent Names: A Data-Driven Approach, in the dynamic environment Scent Names has struggled to respond to the nimble upstart competition. Scent Names has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Scent Names 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, Scent Names 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. Scent Names 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.
Opportunities Unlocking Competitiveness Through Scent Names: A Data-Driven Approach | 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 Unlocking Competitiveness Through Scent Names: A Data-Driven Approach are -
Building a culture of innovation
– managers at Scent Names 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.
Creating value in data economy
– The success of analytics program of Scent Names has opened avenues for new revenue streams for the organization in the industry. This can help Scent Names to build a more holistic ecosystem as suggested in the Unlocking Competitiveness Through Scent Names: A Data-Driven Approach case study. Scent Names can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Scent Names 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.
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 Scent Names in the consumer business. Now Scent Names can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Scent Names can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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.
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. Scent Names can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Scent Names 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.
Loyalty marketing
– Scent Names 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Scent Names 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 Scent Names to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Scent Names is facing challenges because of the dominance of functional experts in the organization. Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Scent Names 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, Unlocking Competitiveness Through Scent Names: A Data-Driven Approach, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Scent Names in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
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 Scent Names 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.
Threats Unlocking Competitiveness Through Scent Names: A Data-Driven Approach External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Unlocking Competitiveness Through Scent Names: A Data-Driven Approach are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Scent Names with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Scent Names business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Scent Names 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 Unlocking Competitiveness Through Scent Names: A Data-Driven Approach .
Regulatory challenges
– Scent Names 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.
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.
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. Scent Names 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Scent Names 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.
Environmental challenges
– Scent Names 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. Scent Names can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Unlocking Competitiveness Through Scent Names: A Data-Driven Approach, Scent Names 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 .
Shortening product life cycle
– it is one of the major threat that Scent Names is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Scent Names 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.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Scent Names can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Scent Names in the Sales & Marketing sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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 Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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 Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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 Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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 Unlocking Competitiveness Through Scent Names: A Data-Driven Approach 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 Scent Names needs to make to build a sustainable competitive advantage.
