Case Study Description of Brand W: Strategizing for Omni-Channel Retail
TCNS Clothing Company Limited (TCNS), the owner of women's fusion-wear brands W, Weve, Aurelia, and Wishful, had built up a strong retail brand presence in India since its founding in 2002. By 2017, its product innovation, proactive customer need fulfillment, and extensive retail reach had enabled it to grow into a 11.5 billion company. The W brand had been building its online presence, but this was still contributing only single-digit shares to sales. Faced with issues of declining loyalty and increasing expectations of digitally influenced consumers, retailers in India were moving toward omni-channel strategies. In early 2018, this seemed to have become an imperative for W as well. Was it now time for W to pursue an omni-channel retail strategy to offer its customers an unbeatable experience? An infusion of funds from two major investors had given the company significant financial muscle to pursue aggressive marketing. Yet, the challenges of going omni-channel were considerable. How should W proceed? Jones Mathew is affiliated with Great Lakes Institute of Management. Banasree Dey is affiliated with Jaipuria Institute of Management. Sandeep Puri is affiliated with Asian Institute of Management.
Authors :: Jones Mathew, Banasree Dey, Sandeep Puri
Swot Analysis of "Brand W: Strategizing for Omni-Channel Retail" written by Jones Mathew, Banasree Dey, Sandeep Puri includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Omni Tcns facing as an external strategic factors. Some of the topics covered in Brand W: Strategizing for Omni-Channel Retail case study are - Strategic Management Strategies, Strategy and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Brand W: Strategizing for Omni-Channel Retail casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , there is increasing trade war between United States & China,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Brand W: Strategizing for Omni-Channel Retail
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Brand W: Strategizing for Omni-Channel Retail case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Omni Tcns, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Omni Tcns 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 Brand W: Strategizing for Omni-Channel Retail can be done for the following purposes –
1. Strategic planning using facts provided in Brand W: Strategizing for Omni-Channel Retail case study
2. Improving business portfolio management of Omni Tcns
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 Omni Tcns
Strengths Brand W: Strategizing for Omni-Channel Retail | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Omni Tcns in Brand W: Strategizing for Omni-Channel Retail Harvard Business Review case study are -
Ability to lead change in Sales & Marketing field
– Omni Tcns 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 Omni Tcns in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Omni Tcns has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Brand W: Strategizing for Omni-Channel Retail 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.
Strong track record of project management
– Omni Tcns is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Omni Tcns has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Omni Tcns to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Omni Tcns has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Omni Tcns 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.
Low bargaining power of suppliers
– Suppliers of Omni Tcns in the sector have low bargaining power. Brand W: Strategizing for Omni-Channel Retail has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Omni Tcns to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Omni Tcns
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Omni Tcns does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Brand W: Strategizing for Omni-Channel Retail Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Omni Tcns 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 Omni Tcns is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Brand W: Strategizing for Omni-Channel Retail Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Omni Tcns 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Brand W: Strategizing for Omni-Channel Retail firm has clearly differentiated products in the market place. This has enabled Omni Tcns to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Omni Tcns to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Omni Tcns in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Brand W: Strategizing for Omni-Channel Retail | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Brand W: Strategizing for Omni-Channel Retail are -
High bargaining power of channel partners
– Because of the regulatory requirements, Jones Mathew, Banasree Dey, Sandeep Puri suggests that, Omni Tcns 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 operating costs
– Compare to the competitors, firm in the HBR case study Brand W: Strategizing for Omni-Channel Retail 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 Omni Tcns 's lucrative customers.
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 Omni Tcns supply chain. Even after few cautionary changes mentioned in the HBR case study - Brand W: Strategizing for Omni-Channel Retail, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Omni Tcns vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Brand W: Strategizing for Omni-Channel Retail, 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.
Low market penetration in new markets
– Outside its home market of Omni Tcns, firm in the HBR case study Brand W: Strategizing for Omni-Channel Retail needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Omni Tcns 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.
Skills based hiring
– The stress on hiring functional specialists at Omni Tcns 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.
Interest costs
– Compare to the competition, Omni Tcns has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High cash cycle compare to competitors
Omni Tcns 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Brand W: Strategizing for Omni-Channel Retail 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 Omni Tcns has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Omni Tcns 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 Brand W: Strategizing for Omni-Channel Retail | 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 Brand W: Strategizing for Omni-Channel Retail are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Omni Tcns 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 Omni Tcns to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Omni Tcns 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.
Building a culture of innovation
– managers at Omni Tcns can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Omni Tcns 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Omni Tcns 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. Omni Tcns 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.
Loyalty marketing
– Omni Tcns 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.
Learning at scale
– Online learning technologies has now opened space for Omni Tcns 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Omni Tcns 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, Brand W: Strategizing for Omni-Channel Retail, 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
– Omni Tcns can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
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 Omni Tcns in the consumer business. Now Omni Tcns can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Omni Tcns to increase its market reach. Omni Tcns 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Omni Tcns 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.
Buying journey improvements
– Omni Tcns can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Brand W: Strategizing for Omni-Channel Retail 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.
Threats Brand W: Strategizing for Omni-Channel Retail External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Brand W: Strategizing for Omni-Channel Retail are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Omni Tcns with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Omni Tcns is facing in Sales & Marketing 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 Omni Tcns business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Omni Tcns has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Omni Tcns 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.
Environmental challenges
– Omni Tcns 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. Omni Tcns can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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.
Increasing wage structure of Omni Tcns
– 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 Omni Tcns.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Omni Tcns 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 Brand W: Strategizing for Omni-Channel Retail .
Consumer confidence and its impact on Omni Tcns 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.
Stagnating economy with rate increase
– Omni Tcns 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 Omni Tcns in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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 Omni Tcns.
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. Omni Tcns can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Brand W: Strategizing for Omni-Channel Retail 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 Brand W: Strategizing for Omni-Channel Retail 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 Brand W: Strategizing for Omni-Channel Retail 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 Brand W: Strategizing for Omni-Channel Retail 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 Brand W: Strategizing for Omni-Channel Retail 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 Omni Tcns needs to make to build a sustainable competitive advantage.
