Case Study Description of COMCO Holding AG (B): COMCO Martech
COMCO Martech was a new breed of joint venture for COMCO Holding, a mid-sized Swiss-German company that had grown over a five-year period through tie-ups with small, start-up companies. Whereas a typical COMCO venture provided services to a large German retailer, was based in a German-speaking country of Europe, and granted COMCO Holding clear management control, COMCO Martech was managed on a 50-50 basis with an American partner, was active in Eastern Europe, and supplied decontamination services to non-retail related clients. The venture got off to a rocky start. This case looks at the difficulties that arise in managing cross-boundary collaboration; the characteristics that promote compatibility between partners; and the factors that account for successful international partnerships.
Swot Analysis of "COMCO Holding AG (B): COMCO Martech" written by Rosabeth Moss Kanter, Pamela Yatsko includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Comco Martech facing as an external strategic factors. Some of the topics covered in COMCO Holding AG (B): COMCO Martech case study are - Strategic Management Strategies, International business, Joint ventures, Operations management, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the COMCO Holding AG (B): COMCO Martech casestudy better are - – central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs,
increasing commodity prices, increasing energy prices, etc
Introduction to SWOT Analysis of COMCO Holding AG (B): COMCO Martech
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in COMCO Holding AG (B): COMCO Martech case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Comco Martech, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Comco Martech 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 COMCO Holding AG (B): COMCO Martech can be done for the following purposes –
1. Strategic planning using facts provided in COMCO Holding AG (B): COMCO Martech case study
2. Improving business portfolio management of Comco Martech
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Comco Martech
Strengths COMCO Holding AG (B): COMCO Martech | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Comco Martech in COMCO Holding AG (B): COMCO Martech Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Comco Martech in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Global Business field
– Comco Martech 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 Comco Martech in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Comco Martech in the sector have low bargaining power. COMCO Holding AG (B): COMCO Martech has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Comco Martech to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Comco Martech has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Comco Martech to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Comco Martech are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Sustainable margins compare to other players in Global Business industry
– COMCO Holding AG (B): COMCO Martech firm has clearly differentiated products in the market place. This has enabled Comco Martech to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Comco Martech to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Comco Martech is one of the leading recruiters in the industry. Managers in the COMCO Holding AG (B): COMCO Martech are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Comco Martech is present in almost all the verticals within the industry. This has provided firm in COMCO Holding AG (B): COMCO Martech 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.
Highly skilled collaborators
– Comco Martech 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 COMCO Holding AG (B): COMCO Martech HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Comco Martech 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 Rosabeth Moss Kanter, Pamela Yatsko 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.
Effective Research and Development (R&D)
– Comco Martech 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 COMCO Holding AG (B): COMCO Martech - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Comco Martech 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 Comco Martech is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in COMCO Holding AG (B): COMCO Martech Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses COMCO Holding AG (B): COMCO Martech | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of COMCO Holding AG (B): COMCO Martech are -
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 Comco Martech supply chain. Even after few cautionary changes mentioned in the HBR case study - COMCO Holding AG (B): COMCO Martech, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Comco Martech vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Comco Martech is dominated by functional specialists. It is not different from other players in the Global Business segment. Comco Martech needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Comco Martech to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study COMCO Holding AG (B): COMCO Martech, it seems that the employees of Comco Martech 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the COMCO Holding AG (B): COMCO Martech 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 Comco Martech has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Comco Martech 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Comco Martech is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study COMCO Holding AG (B): COMCO Martech 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 COMCO Holding AG (B): COMCO Martech HBR case study mentions - Comco Martech 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.
Slow decision making process
– As mentioned earlier in the report, Comco Martech 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. Comco Martech 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Rosabeth Moss Kanter, Pamela Yatsko suggests that, Comco Martech 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study COMCO Holding AG (B): COMCO Martech, in the dynamic environment Comco Martech has struggled to respond to the nimble upstart competition. Comco Martech 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
– Comco Martech 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.
Opportunities COMCO Holding AG (B): COMCO Martech | 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 COMCO Holding AG (B): COMCO Martech are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Comco Martech can use these opportunities to build new business models that can help the communities that Comco Martech operates in. Secondly it can use opportunities from government spending in Global Business sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Comco Martech can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Comco Martech is facing challenges because of the dominance of functional experts in the organization. COMCO Holding AG (B): COMCO Martech 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.
Learning at scale
– Online learning technologies has now opened space for Comco Martech to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Comco Martech 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, COMCO Holding AG (B): COMCO Martech, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Comco Martech 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 Global Business segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Comco Martech 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.
Loyalty marketing
– Comco Martech 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.
Developing new processes and practices
– Comco Martech can develop new processes and procedures in Global Business 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.
Manufacturing automation
– Comco Martech can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Comco Martech 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 Comco Martech to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Comco Martech 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.
Buying journey improvements
– Comco Martech can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. COMCO Holding AG (B): COMCO Martech suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Threats COMCO Holding AG (B): COMCO Martech External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study COMCO Holding AG (B): COMCO Martech are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study COMCO Holding AG (B): COMCO Martech, Comco Martech may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Comco Martech in the Global Business industry. The Global Business 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.
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. Comco Martech 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 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. Comco Martech needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Consumer confidence and its impact on Comco Martech 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Comco Martech 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 COMCO Holding AG (B): COMCO Martech .
Stagnating economy with rate increase
– Comco Martech 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.
Increasing wage structure of Comco Martech
– 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 Comco Martech.
Regulatory challenges
– Comco Martech 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 Global Business industry regulations.
Technology acceleration in Forth Industrial Revolution
– Comco Martech has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Comco Martech needs to keep up with the evolution of technology in the Global Business 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.
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.
Environmental challenges
– Comco Martech 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. Comco Martech can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Shortening product life cycle
– it is one of the major threat that Comco Martech is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of COMCO Holding AG (B): COMCO Martech 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 COMCO Holding AG (B): COMCO Martech 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 COMCO Holding AG (B): COMCO Martech 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 COMCO Holding AG (B): COMCO Martech 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 COMCO Holding AG (B): COMCO Martech 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 Comco Martech needs to make to build a sustainable competitive advantage.
