Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century
Florentino Perez, the president of Real Madrid, a leading European soccer team, is preparing for a press conference in which he will be asked about his plans for the coming season. Economic success and some sports mishaps during the prior season represent the scenario in which planning decisions are made.
Authors :: F. Asis Martinez-Jerez, Rosario M. De Albornoz
Swot Analysis of "Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century" written by F. Asis Martinez-Jerez, Rosario M. De Albornoz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Madrid Season facing as an external strategic factors. Some of the topics covered in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century case study are - Strategic Management Strategies, Market research, Strategic planning, Strategy execution and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century casestudy better are - – wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%,
increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Madrid Season, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Madrid Season 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century can be done for the following purposes –
1. Strategic planning using facts provided in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century case study
2. Improving business portfolio management of Madrid Season
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 Madrid Season
Strengths Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Madrid Season in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century Harvard Business Review case study are -
Diverse revenue streams
– Madrid Season is present in almost all the verticals within the industry. This has provided firm in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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.
Cross disciplinary teams
– Horizontal connected teams at the Madrid Season 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.
Successful track record of launching new products
– Madrid Season has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Madrid Season 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 switching costs
– The high switching costs that Madrid Season 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century firm has clearly differentiated products in the market place. This has enabled Madrid Season to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Madrid Season to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Madrid Season 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Finance & Accounting field
– Madrid Season 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 Madrid Season in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Madrid Season is one of the most innovative firm in sector. Manager in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Madrid Season digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Madrid Season 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.
Superior customer experience
– The customer experience strategy of Madrid Season in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Madrid Season is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by F. Asis Martinez-Jerez, Rosario M. De Albornoz can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Operational resilience
– The operational resilience strategy in the Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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.
Weaknesses Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century are -
Skills based hiring
– The stress on hiring functional specialists at Madrid Season 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.
Increasing silos among functional specialists
– The organizational structure of Madrid Season is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Madrid Season needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Madrid Season 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Madrid Season '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 Madrid Season supply chain. Even after few cautionary changes mentioned in the HBR case study - Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Madrid Season vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century, 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Madrid Season is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century HBR case study mentions - Madrid Season takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century, in the dynamic environment Madrid Season has struggled to respond to the nimble upstart competition. Madrid Season has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Madrid Season 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.
Low market penetration in new markets
– Outside its home market of Madrid Season, firm in the HBR case study Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Madrid Season products
– To increase the profitability and margins on the products, Madrid Season needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century | 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century are -
Leveraging digital technologies
– Madrid Season 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.
Developing new processes and practices
– Madrid Season 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Madrid Season is facing challenges because of the dominance of functional experts in the organization. Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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.
Buying journey improvements
– Madrid Season can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Madrid Season 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.
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 Madrid Season 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.
Using analytics as competitive advantage
– Madrid Season 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Madrid Season 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, Madrid Season can use these opportunities to build new business models that can help the communities that Madrid Season operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
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. Madrid Season can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Madrid Season 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. Madrid Season 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Madrid Season 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 Madrid Season to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Madrid Season 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.
Learning at scale
– Online learning technologies has now opened space for Madrid Season 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Madrid Season in the Finance & Accounting sector and impact the bottomline of the organization.
Regulatory challenges
– Madrid Season 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.
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. Madrid Season needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Madrid Season 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.
High dependence on third party suppliers
– Madrid Season 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.
Technology acceleration in Forth Industrial Revolution
– Madrid Season has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Madrid Season 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.
Consumer confidence and its impact on Madrid Season 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.
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. Madrid Season 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.
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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Madrid Season can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Madrid Season 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. Madrid Season can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Stagnating economy with rate increase
– Madrid Season 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Madrid Season with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Madrid Season needs to make to build a sustainable competitive advantage.
