Qwikcilver and Woohoo Developing a Complementary Platform SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Qwikcilver and Woohoo Developing a Complementary Platform
This case on Qwikcilver and Woohoo analyses the development of the Qwikcilver gift card processing business, its various challenges in evolving the primary B2B business model and how the firm has introduced the Woohoo platform to help with direct customer connect. It begins with the efforts of the founders in identifying a green field opportunity, how they go about bringing in the initial customer base and then the case delves into the different developments that have shaped the firm's evolution. The case helps develop an understanding of the gifting market in India, the challenges of building a sustainable business in this sector and how the firm compares with the rest of the competition worldwide. It highlights how a Software-as-a-Service (SaaS) business model could increase resilience to competition by bringing in a new side in the form of direct connect with customers who buy or redeem gift cards, thus transforming from a pipeline business to a two-sided platform business model. The case is used to teach the basics of pipeline and multi-sided platform business models, the different actors in the platform business and the concept of network effects. It should help the students appreciate the differences between the pipeline and platform business models, and how a platform business model can bring in additional competitive differentiation as compared to a pure SaaS approach by increasing switching and multi-homing costs for the customers.
Authors :: R. Srinivasan, Sandeep Lakshmipathy, Padmavathi Koride
Swot Analysis of "Qwikcilver and Woohoo Developing a Complementary Platform" written by R. Srinivasan, Sandeep Lakshmipathy, Padmavathi Koride includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Qwikcilver Woohoo facing as an external strategic factors. Some of the topics covered in Qwikcilver and Woohoo Developing a Complementary Platform case study are - Strategic Management Strategies, Economics, International business, IT and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Qwikcilver and Woohoo Developing a Complementary Platform casestudy better are - – increasing government debt because of Covid-19 spendings, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, geopolitical disruptions, central banks are concerned over increasing inflation,
wage bills are increasing, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Qwikcilver and Woohoo Developing a Complementary Platform
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Qwikcilver and Woohoo Developing a Complementary Platform case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Qwikcilver Woohoo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Qwikcilver Woohoo 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 Qwikcilver and Woohoo Developing a Complementary Platform can be done for the following purposes –
1. Strategic planning using facts provided in Qwikcilver and Woohoo Developing a Complementary Platform case study
2. Improving business portfolio management of Qwikcilver Woohoo
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Qwikcilver Woohoo
Strengths Qwikcilver and Woohoo Developing a Complementary Platform | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Qwikcilver Woohoo in Qwikcilver and Woohoo Developing a Complementary Platform Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Qwikcilver Woohoo are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Qwikcilver Woohoo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Qwikcilver and Woohoo Developing a Complementary Platform Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– Qwikcilver Woohoo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Qwikcilver Woohoo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Qwikcilver Woohoo 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 Qwikcilver Woohoo is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Qwikcilver and Woohoo Developing a Complementary Platform Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Qwikcilver Woohoo is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Qwikcilver Woohoo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Qwikcilver Woohoo 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 Qwikcilver Woohoo in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Strategy & Execution field
– Qwikcilver Woohoo 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 Qwikcilver Woohoo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Qwikcilver Woohoo is one of the most innovative firm in sector. Manager in Qwikcilver and Woohoo Developing a Complementary Platform Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Qwikcilver Woohoo 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 R. Srinivasan, Sandeep Lakshmipathy, Padmavathi Koride 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Qwikcilver and Woohoo Developing a Complementary Platform firm has clearly differentiated products in the market place. This has enabled Qwikcilver Woohoo to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Qwikcilver Woohoo to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Qwikcilver Woohoo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Qwikcilver Woohoo 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.
Weaknesses Qwikcilver and Woohoo Developing a Complementary Platform | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Qwikcilver and Woohoo Developing a Complementary Platform are -
Products dominated business model
– Even though Qwikcilver Woohoo 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 - Qwikcilver and Woohoo Developing a Complementary Platform should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Qwikcilver and Woohoo Developing a Complementary Platform 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 Qwikcilver Woohoo 's lucrative customers.
Lack of clear differentiation of Qwikcilver Woohoo products
– To increase the profitability and margins on the products, Qwikcilver Woohoo needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Qwikcilver Woohoo 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.
High bargaining power of channel partners
– Because of the regulatory requirements, R. Srinivasan, Sandeep Lakshmipathy, Padmavathi Koride suggests that, Qwikcilver Woohoo 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Qwikcilver and Woohoo Developing a Complementary Platform 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 Qwikcilver Woohoo has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Qwikcilver Woohoo 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. Qwikcilver Woohoo 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.
High cash cycle compare to competitors
Qwikcilver Woohoo 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.
Low market penetration in new markets
– Outside its home market of Qwikcilver Woohoo, firm in the HBR case study Qwikcilver and Woohoo Developing a Complementary Platform needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Qwikcilver Woohoo 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Qwikcilver Woohoo 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.
Opportunities Qwikcilver and Woohoo Developing a Complementary Platform | 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 Qwikcilver and Woohoo Developing a Complementary Platform are -
Using analytics as competitive advantage
– Qwikcilver Woohoo 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 Qwikcilver and Woohoo Developing a Complementary Platform - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Qwikcilver Woohoo to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Qwikcilver Woohoo 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Qwikcilver Woohoo is facing challenges because of the dominance of functional experts in the organization. Qwikcilver and Woohoo Developing a Complementary Platform 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Qwikcilver Woohoo can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Qwikcilver Woohoo can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Qwikcilver Woohoo 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 Qwikcilver Woohoo to hire the very best people irrespective of their geographical location.
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 Qwikcilver Woohoo 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Qwikcilver Woohoo can use these opportunities to build new business models that can help the communities that Qwikcilver Woohoo operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Qwikcilver Woohoo 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, Qwikcilver Woohoo 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, Qwikcilver and Woohoo Developing a Complementary Platform, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Qwikcilver Woohoo can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Qwikcilver Woohoo in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Qwikcilver Woohoo 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.
Leveraging digital technologies
– Qwikcilver Woohoo 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 Qwikcilver and Woohoo Developing a Complementary Platform External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Qwikcilver and Woohoo Developing a Complementary Platform are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Qwikcilver Woohoo needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Qwikcilver and Woohoo Developing a Complementary Platform, Qwikcilver Woohoo may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Shortening product life cycle
– it is one of the major threat that Qwikcilver Woohoo is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Qwikcilver Woohoo 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. Qwikcilver Woohoo can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Qwikcilver Woohoo 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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Consumer confidence and its impact on Qwikcilver Woohoo 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 Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Qwikcilver Woohoo can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Qwikcilver Woohoo in the Strategy & Execution industry. The Strategy & Execution 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
– Qwikcilver Woohoo has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Qwikcilver Woohoo needs to keep up with the evolution of technology in the Strategy & Execution 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.
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 Qwikcilver Woohoo in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Qwikcilver Woohoo 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.
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 Qwikcilver Woohoo business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Qwikcilver and Woohoo Developing a Complementary Platform 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 Qwikcilver and Woohoo Developing a Complementary Platform 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 Qwikcilver and Woohoo Developing a Complementary Platform 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 Qwikcilver and Woohoo Developing a Complementary Platform 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 Qwikcilver and Woohoo Developing a Complementary Platform 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 Qwikcilver Woohoo needs to make to build a sustainable competitive advantage.
