Swot Analysis of "Dan Gilbert, Crazy or Crazy Like a Fox?" written by Nori Gerardo Lietz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Crazy Gilbert facing as an external strategic factors. Some of the topics covered in Dan Gilbert, Crazy or Crazy Like a Fox? case study are - Strategic Management Strategies, Government, Managing uncertainty, Operations management, Recession, Risk management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Dan Gilbert, Crazy or Crazy Like a Fox? casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, there is backlash against globalization, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Dan Gilbert, Crazy or Crazy Like a Fox?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Dan Gilbert, Crazy or Crazy Like a Fox? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Crazy Gilbert, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Crazy Gilbert 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 Dan Gilbert, Crazy or Crazy Like a Fox? can be done for the following purposes –
1. Strategic planning using facts provided in Dan Gilbert, Crazy or Crazy Like a Fox? case study
2. Improving business portfolio management of Crazy Gilbert
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 Crazy Gilbert
Strengths Dan Gilbert, Crazy or Crazy Like a Fox? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Crazy Gilbert in Dan Gilbert, Crazy or Crazy Like a Fox? Harvard Business Review case study are -
Innovation driven organization
– Crazy Gilbert is one of the most innovative firm in sector. Manager in Dan Gilbert, Crazy or Crazy Like a Fox? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Crazy Gilbert has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Crazy Gilbert to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Crazy Gilbert is one of the leading recruiters in the industry. Managers in the Dan Gilbert, Crazy or Crazy Like a Fox? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Crazy Gilbert digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Crazy Gilbert 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.
Effective Research and Development (R&D)
– Crazy Gilbert 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 Dan Gilbert, Crazy or Crazy Like a Fox? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Crazy Gilbert
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Crazy Gilbert does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Finance & Accounting industry
– Dan Gilbert, Crazy or Crazy Like a Fox? firm has clearly differentiated products in the market place. This has enabled Crazy Gilbert to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Crazy Gilbert to invest into research and development (R&D) and innovation.
Ability to lead change in Finance & Accounting field
– Crazy Gilbert 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 Crazy Gilbert in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Crazy Gilbert has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Crazy Gilbert 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.
Cross disciplinary teams
– Horizontal connected teams at the Crazy Gilbert 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.
High switching costs
– The high switching costs that Crazy Gilbert 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.
Learning organization
- Crazy Gilbert 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 Crazy Gilbert is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Dan Gilbert, Crazy or Crazy Like a Fox? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Dan Gilbert, Crazy or Crazy Like a Fox? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dan Gilbert, Crazy or Crazy Like a Fox? are -
Aligning sales with marketing
– It come across in the case study Dan Gilbert, Crazy or Crazy Like a Fox? 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 Dan Gilbert, Crazy or Crazy Like a Fox? can leverage the sales team experience to cultivate customer relationships as Crazy Gilbert is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Dan Gilbert, Crazy or Crazy Like a Fox? 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 Crazy Gilbert has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Crazy Gilbert, firm in the HBR case study Dan Gilbert, Crazy or Crazy Like a Fox? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Dan Gilbert, Crazy or Crazy Like a Fox? 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 Crazy Gilbert 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Crazy Gilbert 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.
Need for greater diversity
– Crazy Gilbert 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.
Interest costs
– Compare to the competition, Crazy Gilbert 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Dan Gilbert, Crazy or Crazy Like a Fox?, it seems that the employees of Crazy Gilbert 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 Crazy Gilbert is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Crazy Gilbert needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Crazy Gilbert to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Dan Gilbert, Crazy or Crazy Like a Fox?, in the dynamic environment Crazy Gilbert has struggled to respond to the nimble upstart competition. Crazy Gilbert has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Crazy Gilbert 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. Crazy Gilbert 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 Dan Gilbert, Crazy or Crazy Like a Fox? | 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 Dan Gilbert, Crazy or Crazy Like a Fox? 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 Crazy Gilbert in the consumer business. Now Crazy Gilbert can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Crazy Gilbert can use these opportunities to build new business models that can help the communities that Crazy Gilbert operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Crazy Gilbert 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 Crazy Gilbert has opened avenues for new revenue streams for the organization in the industry. This can help Crazy Gilbert to build a more holistic ecosystem as suggested in the Dan Gilbert, Crazy or Crazy Like a Fox? case study. Crazy Gilbert can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Crazy Gilbert is facing challenges because of the dominance of functional experts in the organization. Dan Gilbert, Crazy or Crazy Like a Fox? 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Crazy Gilbert in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Manufacturing automation
– Crazy Gilbert 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.
Leveraging digital technologies
– Crazy Gilbert 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Crazy Gilbert 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. Crazy Gilbert 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
– Crazy Gilbert 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.
Building a culture of innovation
– managers at Crazy Gilbert 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 Finance & Accounting segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Crazy Gilbert 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.
Better consumer reach
– The expansion of the 5G network will help Crazy Gilbert to increase its market reach. Crazy Gilbert 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.
Threats Dan Gilbert, Crazy or Crazy Like a Fox? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Dan Gilbert, Crazy or Crazy Like a Fox? are -
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Dan Gilbert, Crazy or Crazy Like a Fox?, Crazy Gilbert 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 .
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 Crazy Gilbert in the Finance & Accounting sector and impact the bottomline 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. Crazy Gilbert needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Environmental challenges
– Crazy Gilbert 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. Crazy Gilbert can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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.
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 Crazy Gilbert business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Crazy Gilbert has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Crazy Gilbert needs to keep up with the evolution of technology in the Finance & Accounting 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.
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 Crazy Gilbert.
Regulatory challenges
– Crazy Gilbert 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.
Consumer confidence and its impact on Crazy Gilbert 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Crazy Gilbert with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Crazy Gilbert 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 Dan Gilbert, Crazy or Crazy Like a Fox? .
Weighted SWOT Analysis of Dan Gilbert, Crazy or Crazy Like a Fox? 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 Dan Gilbert, Crazy or Crazy Like a Fox? 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 Dan Gilbert, Crazy or Crazy Like a Fox? 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 Dan Gilbert, Crazy or Crazy Like a Fox? 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 Dan Gilbert, Crazy or Crazy Like a Fox? 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 Crazy Gilbert needs to make to build a sustainable competitive advantage.
