Case Study Description of Matching Markets for Googlers
This case describes how Google designed and launched an internal matching market to assign individual workers with projects and managers. The case evaluates how marketplace design considerations -- and several alternative staffing models -- could affect the company's goals and workers' well-being. It discusses the details of implementation as well as the intended (and unintended) consequences of the internal match system. The case concludes with a debate about how the Chameleon marketplace could expand to include more Googlers and illustrates what to consider when thinking about launching new matching markets in organizations.
Swot Analysis of "Matching Markets for Googlers" written by Bo Cowgill, Rembrand Koning includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Googlers Matching facing as an external strategic factors. Some of the topics covered in Matching Markets for Googlers case study are - Strategic Management Strategies, Design, Entrepreneurship, Human resource management, Labor and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Matching Markets for Googlers casestudy better are - – increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion,
geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Matching Markets for Googlers
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Matching Markets for Googlers case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Googlers Matching, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Googlers Matching 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 Matching Markets for Googlers can be done for the following purposes –
1. Strategic planning using facts provided in Matching Markets for Googlers case study
2. Improving business portfolio management of Googlers Matching
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Googlers Matching
Strengths Matching Markets for Googlers | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Googlers Matching in Matching Markets for Googlers Harvard Business Review case study are -
High brand equity
– Googlers Matching has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Googlers Matching to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Googlers Matching has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Matching Markets for Googlers HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Googlers Matching has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Googlers Matching 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
– Googlers Matching 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 Bo Cowgill, Rembrand Koning 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.
Effective Research and Development (R&D)
– Googlers Matching has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Matching Markets for Googlers - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Googlers Matching is one of the most innovative firm in sector. Manager in Matching Markets for Googlers Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Googlers Matching 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 Googlers Matching is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Matching Markets for Googlers Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Googlers Matching is present in almost all the verticals within the industry. This has provided firm in Matching Markets for Googlers 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.
Low bargaining power of suppliers
– Suppliers of Googlers Matching in the sector have low bargaining power. Matching Markets for Googlers has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Googlers Matching to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Googlers Matching is one of the leading recruiters in the industry. Managers in the Matching Markets for Googlers are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Matching Markets for Googlers 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Googlers Matching digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Googlers Matching 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.
Weaknesses Matching Markets for Googlers | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Matching Markets for Googlers are -
Slow decision making process
– As mentioned earlier in the report, Googlers Matching 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. Googlers Matching 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 operating costs
– Compare to the competitors, firm in the HBR case study Matching Markets for Googlers 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 Googlers Matching 's lucrative customers.
High cash cycle compare to competitors
Googlers Matching 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 Matching Markets for Googlers, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Lack of clear differentiation of Googlers Matching products
– To increase the profitability and margins on the products, Googlers Matching needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Googlers Matching supply chain. Even after few cautionary changes mentioned in the HBR case study - Matching Markets for Googlers, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Googlers Matching vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Matching Markets for Googlers, is just above the industry average. Googlers Matching 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Matching Markets for Googlers 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 Googlers Matching has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Matching Markets for Googlers, it seems that the employees of Googlers Matching don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow to strategic competitive environment developments
– As Matching Markets for Googlers HBR case study mentions - Googlers Matching 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, Googlers Matching 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 Matching Markets for Googlers | 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 Matching Markets for Googlers 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 Googlers Matching in the consumer business. Now Googlers Matching can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Googlers Matching can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Googlers Matching 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.
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. Googlers Matching can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Googlers Matching 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 Leadership & Managing People segment.
Better consumer reach
– The expansion of the 5G network will help Googlers Matching to increase its market reach. Googlers Matching 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.
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 Googlers Matching 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, Googlers Matching can use these opportunities to build new business models that can help the communities that Googlers Matching operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Buying journey improvements
– Googlers Matching can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Matching Markets for Googlers 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.
Creating value in data economy
– The success of analytics program of Googlers Matching has opened avenues for new revenue streams for the organization in the industry. This can help Googlers Matching to build a more holistic ecosystem as suggested in the Matching Markets for Googlers case study. Googlers Matching can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Googlers Matching 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 Googlers Matching to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Googlers Matching 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. Googlers Matching 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.
Leveraging digital technologies
– Googlers Matching 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 Matching Markets for Googlers External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Matching Markets for Googlers are -
Consumer confidence and its impact on Googlers Matching 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.
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. Googlers Matching needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Googlers Matching 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 Googlers Matching is facing in Leadership & Managing People 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 Googlers Matching business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Googlers Matching 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Googlers Matching in the Leadership & Managing People industry. The Leadership & Managing People 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.
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. Googlers Matching 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 Googlers Matching
– 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 Googlers Matching.
Technology acceleration in Forth Industrial Revolution
– Googlers Matching has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Googlers Matching needs to keep up with the evolution of technology in the Leadership & Managing People 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.
High dependence on third party suppliers
– Googlers Matching 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.
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 Googlers Matching.
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 Googlers Matching in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Matching Markets for Googlers 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 Matching Markets for Googlers 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 Matching Markets for Googlers 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 Matching Markets for Googlers 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 Matching Markets for Googlers 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 Googlers Matching needs to make to build a sustainable competitive advantage.