Case Study Description of Testing Marketing Hypotheses at WSES
We Sell Everything in Software (WSES) Inc., sold innovative off-the-shelf products and had customers across the world. WSES specialized in providing software solutions for different industries such as defense, clinical research, consumer goods, capital markets, security, banks, retail, and insurance among others. Although the products were commercial off-the-shelf, many clients required personalization and after sales support which WSES was happy to provide. WSES did not have a structured approach to take decision regarding chasing a sales lead. Therefore, it incurred pretty high marketing cost including their travel costs, client visits, time spent by the sales team/technical experts/support staff, and logistics costs; most importantly, this list excluded the cost of advertising, which in effect meant that the advertising costs were over and above the ones mentioned. The marketing team had several beliefs about chance of winning a deal across different geographical locations, different domains, etc. However, none of these beliefs have been validates. Jack Williams, the CEO of WSES, was worried that despite having such a huge expenditure list, the sales conversion possibilities based on the pipeline was at best an ancillary information, as there was no substance in justifying ''gut feeling''. Thus, WSES engaged Liz with a Ph.D. in statistics to understand if they could determine a structured approach to check whether the beliefs of the marketing was in fact correct or not. Jack also believed that simple statistical analysis can help WSES with useful insights about sales conversion.
Swot Analysis of "Testing Marketing Hypotheses at WSES" written by Unnikrishnan Dinesh Kumar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wses Beliefs facing as an external strategic factors. Some of the topics covered in Testing Marketing Hypotheses at WSES case study are - Strategic Management Strategies, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Testing Marketing Hypotheses at WSES casestudy better are - – wage bills are increasing, technology disruption, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy,
there is increasing trade war between United States & China, geopolitical disruptions, etc
Introduction to SWOT Analysis of Testing Marketing Hypotheses at WSES
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Testing Marketing Hypotheses at WSES case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wses Beliefs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wses Beliefs 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 Testing Marketing Hypotheses at WSES can be done for the following purposes –
1. Strategic planning using facts provided in Testing Marketing Hypotheses at WSES case study
2. Improving business portfolio management of Wses Beliefs
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 Wses Beliefs
Strengths Testing Marketing Hypotheses at WSES | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wses Beliefs in Testing Marketing Hypotheses at WSES Harvard Business Review case study are -
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Wses Beliefs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wses Beliefs 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.
Ability to lead change in Sales & Marketing field
– Wses Beliefs 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 Wses Beliefs 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 Wses Beliefs in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Testing Marketing Hypotheses at WSES 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.
High brand equity
– Wses Beliefs has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wses Beliefs to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Wses Beliefs is one of the leading recruiters in the industry. Managers in the Testing Marketing Hypotheses at WSES are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Wses Beliefs 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.
Learning organization
- Wses Beliefs 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 Wses Beliefs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Testing Marketing Hypotheses at WSES Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Wses Beliefs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Wses Beliefs 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.
Analytics focus
– Wses Beliefs 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 Unnikrishnan Dinesh Kumar 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.
High switching costs
– The high switching costs that Wses Beliefs 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Testing Marketing Hypotheses at WSES firm has clearly differentiated products in the market place. This has enabled Wses Beliefs to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Wses Beliefs to invest into research and development (R&D) and innovation.
Weaknesses Testing Marketing Hypotheses at WSES | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Testing Marketing Hypotheses at WSES are -
Lack of clear differentiation of Wses Beliefs products
– To increase the profitability and margins on the products, Wses Beliefs needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Wses Beliefs 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 - Testing Marketing Hypotheses at WSES should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Wses Beliefs 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Testing Marketing Hypotheses at WSES, is just above the industry average. Wses Beliefs 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 cash cycle compare to competitors
Wses Beliefs 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, Unnikrishnan Dinesh Kumar suggests that, Wses Beliefs 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.
Increasing silos among functional specialists
– The organizational structure of Wses Beliefs is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Wses Beliefs needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Wses Beliefs to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Testing Marketing Hypotheses at WSES, in the dynamic environment Wses Beliefs has struggled to respond to the nimble upstart competition. Wses Beliefs has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Testing Marketing Hypotheses at WSES 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 Wses Beliefs 's lucrative customers.
Slow to strategic competitive environment developments
– As Testing Marketing Hypotheses at WSES HBR case study mentions - Wses Beliefs 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.
No frontier risks strategy
– After analyzing the HBR case study Testing Marketing Hypotheses at WSES, 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.
Opportunities Testing Marketing Hypotheses at WSES | 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 Testing Marketing Hypotheses at WSES are -
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 Wses Beliefs in the consumer business. Now Wses Beliefs can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Wses Beliefs has opened avenues for new revenue streams for the organization in the industry. This can help Wses Beliefs to build a more holistic ecosystem as suggested in the Testing Marketing Hypotheses at WSES case study. Wses Beliefs can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wses Beliefs is facing challenges because of the dominance of functional experts in the organization. Testing Marketing Hypotheses at WSES 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.
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. Wses Beliefs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Wses Beliefs 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wses Beliefs can use these opportunities to build new business models that can help the communities that Wses Beliefs operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Using analytics as competitive advantage
– Wses Beliefs 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 Testing Marketing Hypotheses at WSES - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Wses Beliefs 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. Wses Beliefs can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Wses Beliefs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Testing Marketing Hypotheses at WSES 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Wses Beliefs 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 Wses Beliefs 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Wses Beliefs 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.
Leveraging digital technologies
– Wses Beliefs can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Testing Marketing Hypotheses at WSES External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Testing Marketing Hypotheses at WSES are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Wses Beliefs 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 Wses Beliefs 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.
Regulatory challenges
– Wses Beliefs 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.
Technology acceleration in Forth Industrial Revolution
– Wses Beliefs has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Wses Beliefs 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 Wses Beliefs.
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. Wses Beliefs can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Wses Beliefs business can come under increasing regulations regarding data privacy, data security, etc.
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. Wses Beliefs 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Testing Marketing Hypotheses at WSES, Wses Beliefs 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wses Beliefs 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 Testing Marketing Hypotheses at WSES .
Shortening product life cycle
– it is one of the major threat that Wses Beliefs is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Wses Beliefs in the Sales & Marketing sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Testing Marketing Hypotheses at WSES 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 Testing Marketing Hypotheses at WSES 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 Testing Marketing Hypotheses at WSES 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 Testing Marketing Hypotheses at WSES 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 Testing Marketing Hypotheses at WSES 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 Wses Beliefs needs to make to build a sustainable competitive advantage.
