Case Study Description of Germany's Bundesliga: Does Money Score Goals?
During one of the most nerve-wracking football matches of the 2012-2013 Bundesliga season, life-long friends Franz Dully and Max Vogel begin arguing about whether the wealth of a football club determines its success during the season. In order to disprove Vogel's claim that "money scores goals," Dully must analyze the Bundesliga's current market values, points earned, and mid-season leader data.
Authors :: Karl Schmedders, Charlotte Snyder, Sophie Tinz
Swot Analysis of "Germany's Bundesliga: Does Money Score Goals?" written by Karl Schmedders, Charlotte Snyder, Sophie Tinz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dully Bundesliga facing as an external strategic factors. Some of the topics covered in Germany's Bundesliga: Does Money Score Goals? case study are - Strategic Management Strategies, Decision making, Financial analysis, Market research and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Germany's Bundesliga: Does Money Score Goals? casestudy better are - – increasing energy prices, there is increasing trade war between United States & China, increasing household debt because of falling income levels, there is backlash against globalization, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing,
challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Germany's Bundesliga: Does Money Score Goals?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Germany's Bundesliga: Does Money Score Goals? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dully Bundesliga, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dully Bundesliga 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 Germany's Bundesliga: Does Money Score Goals? can be done for the following purposes –
1. Strategic planning using facts provided in Germany's Bundesliga: Does Money Score Goals? case study
2. Improving business portfolio management of Dully Bundesliga
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Dully Bundesliga
Strengths Germany's Bundesliga: Does Money Score Goals? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dully Bundesliga in Germany's Bundesliga: Does Money Score Goals? Harvard Business Review case study are -
Training and development
– Dully Bundesliga has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Germany's Bundesliga: Does Money Score Goals? 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Dully Bundesliga digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dully Bundesliga 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.
Successful track record of launching new products
– Dully Bundesliga has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dully Bundesliga 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.
High brand equity
– Dully Bundesliga has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Dully Bundesliga to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Dully Bundesliga in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Dully Bundesliga 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
– Dully Bundesliga is present in almost all the verticals within the industry. This has provided firm in Germany's Bundesliga: Does Money Score Goals? 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.
Effective Research and Development (R&D)
– Dully Bundesliga 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 Germany's Bundesliga: Does Money Score Goals? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Germany's Bundesliga: Does Money Score Goals? 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.
Strong track record of project management
– Dully Bundesliga is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Dully Bundesliga in the sector have low bargaining power. Germany's Bundesliga: Does Money Score Goals? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Dully Bundesliga to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Dully Bundesliga has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Germany's Bundesliga: Does Money Score Goals? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Germany's Bundesliga: Does Money Score Goals? are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Dully Bundesliga is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Germany's Bundesliga: Does Money Score Goals? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential 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 Dully Bundesliga supply chain. Even after few cautionary changes mentioned in the HBR case study - Germany's Bundesliga: Does Money Score Goals?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dully Bundesliga vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Karl Schmedders, Charlotte Snyder, Sophie Tinz suggests that, Dully Bundesliga 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Dully Bundesliga 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.
Capital Spending Reduction
– Even during the low interest decade, Dully Bundesliga has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Germany's Bundesliga: Does Money Score Goals?, it seems that the employees of Dully Bundesliga 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.
Increasing silos among functional specialists
– The organizational structure of Dully Bundesliga is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Dully Bundesliga needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Dully Bundesliga to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Germany's Bundesliga: Does Money Score Goals? 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 Dully Bundesliga 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Dully Bundesliga 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. Dully Bundesliga 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.
Products dominated business model
– Even though Dully Bundesliga 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 - Germany's Bundesliga: Does Money Score Goals? should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Dully Bundesliga products
– To increase the profitability and margins on the products, Dully Bundesliga needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Germany's Bundesliga: Does Money Score Goals? | 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 Germany's Bundesliga: Does Money Score Goals? are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Dully Bundesliga is facing challenges because of the dominance of functional experts in the organization. Germany's Bundesliga: Does Money Score Goals? 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.
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 Dully Bundesliga to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Low interest rates
– Even though inflation is raising its head in most developed economies, Dully Bundesliga 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.
Using analytics as competitive advantage
– Dully Bundesliga 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 Germany's Bundesliga: Does Money Score Goals? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Dully Bundesliga to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Dully Bundesliga can use these opportunities to build new business models that can help the communities that Dully Bundesliga operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Buying journey improvements
– Dully Bundesliga can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Germany's Bundesliga: Does Money Score Goals? 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.
Manufacturing automation
– Dully Bundesliga can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dully Bundesliga can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Dully Bundesliga has opened avenues for new revenue streams for the organization in the industry. This can help Dully Bundesliga to build a more holistic ecosystem as suggested in the Germany's Bundesliga: Does Money Score Goals? case study. Dully Bundesliga can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Dully Bundesliga 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, Germany's Bundesliga: Does Money Score Goals?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Dully Bundesliga 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.
Better consumer reach
– The expansion of the 5G network will help Dully Bundesliga to increase its market reach. Dully Bundesliga 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 Dully Bundesliga 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.
Threats Germany's Bundesliga: Does Money Score Goals? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Germany's Bundesliga: Does Money Score Goals? are -
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 Dully Bundesliga business can come under increasing regulations regarding data privacy, data security, etc.
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. Dully Bundesliga needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Dully Bundesliga 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 Dully Bundesliga is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Germany's Bundesliga: Does Money Score Goals?, Dully Bundesliga may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Regulatory challenges
– Dully Bundesliga needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Finance & Accounting industry regulations.
Increasing wage structure of Dully Bundesliga
– 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 Dully Bundesliga.
High dependence on third party suppliers
– Dully Bundesliga 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.
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 Dully Bundesliga in the Finance & Accounting sector and impact the bottomline of the organization.
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.
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 Dully Bundesliga.
Environmental challenges
– Dully Bundesliga 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. Dully Bundesliga can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Weighted SWOT Analysis of Germany's Bundesliga: Does Money Score Goals? 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 Germany's Bundesliga: Does Money Score Goals? 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 Germany's Bundesliga: Does Money Score Goals? 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 Germany's Bundesliga: Does Money Score Goals? 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 Germany's Bundesliga: Does Money Score Goals? 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 Dully Bundesliga needs to make to build a sustainable competitive advantage.
