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That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version


The history, current dynamics, and future trends of the $10 billion home video rental industry provides a platform to discuss revenue-sharing contracts between suppliers of home videocassettes and retailers.

Authors :: V.G. Narayanan, Lisa Brem

Topics :: Finance & Accounting

Tags :: Motivating people, Negotiations, Pricing, Supply chain, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version" written by V.G. Narayanan, Lisa Brem includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rental Videocassettes facing as an external strategic factors. Some of the topics covered in That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version case study are - Strategic Management Strategies, Motivating people, Negotiations, Pricing, Supply chain and Finance & Accounting.


Some of the macro environment factors that can be used to understand the That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version casestudy better are - – there is increasing trade war between United States & China, technology disruption, there is backlash against globalization, increasing commodity prices, increasing government debt because of Covid-19 spendings, geopolitical disruptions, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, etc



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Introduction to SWOT Analysis of That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rental Videocassettes, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rental Videocassettes 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 That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version case study
2. Improving business portfolio management of Rental Videocassettes
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 Rental Videocassettes




Strengths That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Rental Videocassettes in That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version Harvard Business Review case study are -

High brand equity

– Rental Videocassettes has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rental Videocassettes to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Training and development

– Rental Videocassettes has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version 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.

Highly skilled collaborators

– Rental Videocassettes 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 That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Ability to recruit top talent

– Rental Videocassettes is one of the leading recruiters in the industry. Managers in the That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version 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 Rental Videocassettes digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Rental Videocassettes 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.

Diverse revenue streams

– Rental Videocassettes is present in almost all the verticals within the industry. This has provided firm in That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version 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.

Successful track record of launching new products

– Rental Videocassettes has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rental Videocassettes 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.

Learning organization

- Rental Videocassettes 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 Rental Videocassettes is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Effective Research and Development (R&D)

– Rental Videocassettes 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 That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version - 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 That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version 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.

High switching costs

– The high switching costs that Rental Videocassettes 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.

Strong track record of project management

– Rental Videocassettes is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.






Weaknesses That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version are -

High dependence on star products

– The top 2 products and services of the firm as mentioned in the That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version 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 Rental Videocassettes has relatively successful track record of launching new products.

High operating costs

– Compare to the competitors, firm in the HBR case study That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version 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 Rental Videocassettes 's lucrative customers.

No frontier risks strategy

– After analyzing the HBR case study That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.

High cash cycle compare to competitors

Rental Videocassettes 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.

Increasing silos among functional specialists

– The organizational structure of Rental Videocassettes is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Rental Videocassettes needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Rental Videocassettes to focus more on services rather than just following the product oriented approach.

Need for greater diversity

– Rental Videocassettes 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.

High bargaining power of channel partners

– Because of the regulatory requirements, V.G. Narayanan, Lisa Brem suggests that, Rental Videocassettes 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.

Products dominated business model

– Even though Rental Videocassettes 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 - That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version should strive to include more intangible value offerings along with its core products and services.

Slow decision making process

– As mentioned earlier in the report, Rental Videocassettes 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. Rental Videocassettes 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.

Interest costs

– Compare to the competition, Rental Videocassettes 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.

Low market penetration in new markets

– Outside its home market of Rental Videocassettes, firm in the HBR case study That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.




Opportunities That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version | 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 That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version are -

Lowering marketing communication costs

– 5G expansion will open new opportunities for Rental Videocassettes 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.

Better consumer reach

– The expansion of the 5G network will help Rental Videocassettes to increase its market reach. Rental Videocassettes 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 Rental Videocassettes 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.

Creating value in data economy

– The success of analytics program of Rental Videocassettes has opened avenues for new revenue streams for the organization in the industry. This can help Rental Videocassettes to build a more holistic ecosystem as suggested in the That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version case study. Rental Videocassettes can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Rental Videocassettes can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Rental Videocassettes can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Developing new processes and practices

– Rental Videocassettes can develop new processes and procedures in Finance & Accounting 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.

Using analytics as competitive advantage

– Rental Videocassettes 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 That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rental Videocassettes to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Manufacturing automation

– Rental Videocassettes 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.

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 Rental Videocassettes 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.

Building a culture of innovation

– managers at Rental Videocassettes 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.

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 Rental Videocassettes in the consumer business. Now Rental Videocassettes 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, Rental Videocassettes can use these opportunities to build new business models that can help the communities that Rental Videocassettes operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.




Threats That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version are -

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 Rental Videocassettes in the Finance & Accounting sector and impact the bottomline of the organization.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Rental Videocassettes 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 That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version .

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rental Videocassettes 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 Rental Videocassettes is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Rental Videocassettes in the Finance & Accounting industry. The Finance & Accounting 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 Rental Videocassettes.

Increasing wage structure of Rental Videocassettes

– 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 Rental Videocassettes.

Regulatory challenges

– Rental Videocassettes 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.

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.

Stagnating economy with rate increase

– Rental Videocassettes 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.

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. Rental Videocassettes 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.

High dependence on third party suppliers

– Rental Videocassettes 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.

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 Rental Videocassettes business can come under increasing regulations regarding data privacy, data security, etc.




Weighted SWOT Analysis of That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version 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 That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version 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 That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version 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 That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version 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 That's a Wrap: The Dynamics of the Video Rental Industry, Spanish Version 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 Rental Videocassettes needs to make to build a sustainable competitive advantage.



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