GroupM India: The Human Dimension of Digital Transformation (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of GroupM India: The Human Dimension of Digital Transformation (A)
Case A sets the context of disruption in India and outlines the challenges facing GroupM in 2013. In the early 2010s, internet technology and social media had started disrupting the Indian advertising industry. Explosive growth in the adoption of smartphones, rapid internet penetration and falling data rates meant the country was becoming a mobile-first economy. At the same time, the demographic profile and media consumption behavior of Indian consumers were evolving rapidly. Moreover, brand managers were no longer satisfied with the reach of a media plan. Instead, they were keen to see a measurable impact of their advertising spend through hard metrics such as sales, customer engagement, market share, and the like. As the growth of digital media threatened to disrupt the traditional advertising business, media agencies were struggling to navigate the digital advertising space. Despite GroupM India's market-leading position, incoming CEO CVL Srinivas realized that the company was on the wrong side of the digital trends in terms of its product, profile, partnerships and people. How could GroupM India leverage its scale to create a new practice with digital at the core and diversify its business beyond traditional media planning and buying? How could it move up the value chain and become a business partner for brands? Case B describes the digital transformation process GroupM India undertook from 2013 to 2016.
Swot Analysis of "GroupM India: The Human Dimension of Digital Transformation (A)" written by Anand Narasimhan, Ivy Buche includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Groupm Media facing as an external strategic factors. Some of the topics covered in GroupM India: The Human Dimension of Digital Transformation (A) case study are - Strategic Management Strategies, Change management, Developing employees, Disruptive innovation, Joint ventures, Leadership, Marketing, Project management, Strategic planning, Talent management and Organizational Development.
Some of the macro environment factors that can be used to understand the GroupM India: The Human Dimension of Digital Transformation (A) casestudy better are - – increasing energy prices, increasing household debt because of falling income levels, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, central banks are concerned over increasing inflation,
customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of GroupM India: The Human Dimension of Digital Transformation (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GroupM India: The Human Dimension of Digital Transformation (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Groupm Media, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Groupm Media 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 GroupM India: The Human Dimension of Digital Transformation (A) can be done for the following purposes –
1. Strategic planning using facts provided in GroupM India: The Human Dimension of Digital Transformation (A) case study
2. Improving business portfolio management of Groupm Media
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Groupm Media
Strengths GroupM India: The Human Dimension of Digital Transformation (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Groupm Media in GroupM India: The Human Dimension of Digital Transformation (A) Harvard Business Review case study are -
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Groupm Media digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Groupm Media 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.
Innovation driven organization
– Groupm Media is one of the most innovative firm in sector. Manager in GroupM India: The Human Dimension of Digital Transformation (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Organizational Development field
– Groupm Media 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 Groupm Media in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Groupm Media has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Groupm Media to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Groupm Media in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Groupm Media 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
- Groupm Media 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 Groupm Media is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GroupM India: The Human Dimension of Digital Transformation (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Groupm Media is one of the leading recruiters in the industry. Managers in the GroupM India: The Human Dimension of Digital Transformation (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Organizational Development industry
– GroupM India: The Human Dimension of Digital Transformation (A) firm has clearly differentiated products in the market place. This has enabled Groupm Media to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Groupm Media to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Groupm Media 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.
Diverse revenue streams
– Groupm Media is present in almost all the verticals within the industry. This has provided firm in GroupM India: The Human Dimension of Digital Transformation (A) 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.
Operational resilience
– The operational resilience strategy in the GroupM India: The Human Dimension of Digital Transformation (A) 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.
Weaknesses GroupM India: The Human Dimension of Digital Transformation (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GroupM India: The Human Dimension of Digital Transformation (A) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the GroupM India: The Human Dimension of Digital Transformation (A) 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 Groupm Media has relatively successful track record of launching new products.
High cash cycle compare to competitors
Groupm Media 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.
No frontier risks strategy
– After analyzing the HBR case study GroupM India: The Human Dimension of Digital Transformation (A), it seems that company is thinking about the frontier risks that can impact Organizational Development 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Groupm Media 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.
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 Groupm Media supply chain. Even after few cautionary changes mentioned in the HBR case study - GroupM India: The Human Dimension of Digital Transformation (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Groupm Media vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study GroupM India: The Human Dimension of Digital Transformation (A) 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 GroupM India: The Human Dimension of Digital Transformation (A) can leverage the sales team experience to cultivate customer relationships as Groupm Media is planning to shift buying processes online.
Lack of clear differentiation of Groupm Media products
– To increase the profitability and margins on the products, Groupm Media needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Groupm Media 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 - GroupM India: The Human Dimension of Digital Transformation (A) should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study GroupM India: The Human Dimension of Digital Transformation (A), in the dynamic environment Groupm Media has struggled to respond to the nimble upstart competition. Groupm Media has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As GroupM India: The Human Dimension of Digital Transformation (A) HBR case study mentions - Groupm Media 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.
Slow decision making process
– As mentioned earlier in the report, Groupm Media 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. Groupm Media 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 GroupM India: The Human Dimension of Digital Transformation (A) | 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 GroupM India: The Human Dimension of Digital Transformation (A) are -
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 Groupm Media 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Groupm Media can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Groupm Media 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 Organizational Development segment.
Better consumer reach
– The expansion of the 5G network will help Groupm Media to increase its market reach. Groupm Media will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Learning at scale
– Online learning technologies has now opened space for Groupm Media 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.
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 Groupm Media in the consumer business. Now Groupm Media can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Groupm Media in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Groupm Media can use these opportunities to build new business models that can help the communities that Groupm Media operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Manufacturing automation
– Groupm Media can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Groupm Media 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 Groupm Media to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Groupm Media 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Groupm Media 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. Groupm Media 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.
Creating value in data economy
– The success of analytics program of Groupm Media has opened avenues for new revenue streams for the organization in the industry. This can help Groupm Media to build a more holistic ecosystem as suggested in the GroupM India: The Human Dimension of Digital Transformation (A) case study. Groupm Media can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats GroupM India: The Human Dimension of Digital Transformation (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GroupM India: The Human Dimension of Digital Transformation (A) are -
Consumer confidence and its impact on Groupm Media 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.
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 Groupm Media.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Groupm Media in the Organizational Development industry. The Organizational Development 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.
Stagnating economy with rate increase
– Groupm Media can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study GroupM India: The Human Dimension of Digital Transformation (A), Groupm Media may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
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.
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. Groupm Media needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
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. Groupm Media 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.
Increasing wage structure of Groupm Media
– 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 Groupm Media.
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.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Groupm Media can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Groupm Media is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Groupm Media business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of GroupM India: The Human Dimension of Digital Transformation (A) 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 GroupM India: The Human Dimension of Digital Transformation (A) 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 GroupM India: The Human Dimension of Digital Transformation (A) 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 GroupM India: The Human Dimension of Digital Transformation (A) 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 GroupM India: The Human Dimension of Digital Transformation (A) 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 Groupm Media needs to make to build a sustainable competitive advantage.
