La Martina (A): "Pasion Argentina" SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of La Martina (A): "Pasion Argentina"
February 2008. Lando Simonetti was enjoying the relative cool of his Cucha Cucha office in the suburbs of Buenos Aires, Argentina. It may have been cool, but definitely not quiet. His desire to always be in the middle of the action at the company also meant he had to live through the noise of the factory. This ability to stay in close contact with people and realities on the ground had been instrumental in building La Martina from a modest polo equipment provider to the premier polo brand in the world, with global sales in excess of US$200 million. La Martina was not about polo: it was polo. As an Argentinean of Italian origin, Lando could not have felt prouder to have conquered Europe. At 65, he had reached the pinnacle of the sport he loved so much. A few nagging questions lingered. The brand was being pushed more and more into fashion, a move he had strongly resisted so far. How would this affect its sustainability? La Martina had never been about fashion; it produced and sold functional polo equipment. Polo had become fashionable, and so had its products. Should he fight the trend or capitalize on it? What would that mean for the company? Fashion also meant growth. So far, he had stubbornly pursued only self-financed growth. Perhaps it was time to consider raising more capital. Learning objectives: Building a brand, managing growth, globalizing.
Authors :: Benoit Leleux, Dominique Turpin, Thomas Brochier
Swot Analysis of "La Martina (A): "Pasion Argentina"" written by Benoit Leleux, Dominique Turpin, Thomas Brochier includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Polo Martina facing as an external strategic factors. Some of the topics covered in La Martina (A): "Pasion Argentina" case study are - Strategic Management Strategies, Entrepreneurship and Global Business.
Some of the macro environment factors that can be used to understand the La Martina (A): "Pasion Argentina" casestudy better are - – geopolitical disruptions, 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, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion,
increasing energy prices, there is backlash against globalization, etc
Introduction to SWOT Analysis of La Martina (A): "Pasion Argentina"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in La Martina (A): "Pasion Argentina" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Polo Martina, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Polo Martina 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 La Martina (A): "Pasion Argentina" can be done for the following purposes –
1. Strategic planning using facts provided in La Martina (A): "Pasion Argentina" case study
2. Improving business portfolio management of Polo Martina
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 Polo Martina
Strengths La Martina (A): "Pasion Argentina" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Polo Martina in La Martina (A): "Pasion Argentina" Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Polo Martina in the sector have low bargaining power. La Martina (A): "Pasion Argentina" has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Polo Martina to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Polo Martina 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 brand equity
– Polo Martina has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Polo Martina to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Polo Martina 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 Benoit Leleux, Dominique Turpin, Thomas Brochier 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.
Innovation driven organization
– Polo Martina is one of the most innovative firm in sector. Manager in La Martina (A): "Pasion Argentina" Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Polo Martina 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
- Polo Martina 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 Polo Martina is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in La Martina (A): "Pasion Argentina" Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Polo Martina 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 La Martina (A): "Pasion Argentina" - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Polo Martina is one of the leading recruiters in the industry. Managers in the La Martina (A): "Pasion Argentina" are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Polo Martina
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Polo Martina does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Polo Martina digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Polo Martina 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.
Sustainable margins compare to other players in Global Business industry
– La Martina (A): "Pasion Argentina" firm has clearly differentiated products in the market place. This has enabled Polo Martina to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Polo Martina to invest into research and development (R&D) and innovation.
Weaknesses La Martina (A): "Pasion Argentina" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of La Martina (A): "Pasion Argentina" are -
Aligning sales with marketing
– It come across in the case study La Martina (A): "Pasion Argentina" 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 La Martina (A): "Pasion Argentina" can leverage the sales team experience to cultivate customer relationships as Polo Martina is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Polo Martina is dominated by functional specialists. It is not different from other players in the Global Business segment. Polo Martina needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Polo Martina to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study La Martina (A): "Pasion Argentina", it seems that company is thinking about the frontier risks that can impact Global Business 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.
Interest costs
– Compare to the competition, Polo Martina 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.
Lack of clear differentiation of Polo Martina products
– To increase the profitability and margins on the products, Polo Martina needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Polo Martina 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 - La Martina (A): "Pasion Argentina" should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Benoit Leleux, Dominique Turpin, Thomas Brochier suggests that, Polo Martina 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.
Capital Spending Reduction
– Even during the low interest decade, Polo Martina 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.
High cash cycle compare to competitors
Polo Martina 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.
Slow to strategic competitive environment developments
– As La Martina (A): "Pasion Argentina" HBR case study mentions - Polo Martina 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, Polo Martina 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. Polo Martina 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 La Martina (A): "Pasion Argentina" | 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 La Martina (A): "Pasion Argentina" are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Polo Martina 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, La Martina (A): "Pasion Argentina", to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Polo Martina can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. La Martina (A): "Pasion Argentina" 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.
Learning at scale
– Online learning technologies has now opened space for Polo Martina 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 Polo Martina has opened avenues for new revenue streams for the organization in the industry. This can help Polo Martina to build a more holistic ecosystem as suggested in the La Martina (A): "Pasion Argentina" case study. Polo Martina can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Polo Martina in the consumer business. Now Polo Martina can target international markets with far fewer capital restrictions requirements than the existing system.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Polo Martina can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Polo Martina 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Polo Martina in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Polo Martina 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.
Manufacturing automation
– Polo Martina 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.
Better consumer reach
– The expansion of the 5G network will help Polo Martina to increase its market reach. Polo Martina 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Polo Martina can use these opportunities to build new business models that can help the communities that Polo Martina operates in. Secondly it can use opportunities from government spending in Global Business sector.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Polo Martina 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. Polo Martina 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.
Threats La Martina (A): "Pasion Argentina" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study La Martina (A): "Pasion Argentina" are -
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Polo Martina can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Polo Martina.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Polo Martina 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.
Consumer confidence and its impact on Polo Martina 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, Polo Martina 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 La Martina (A): "Pasion Argentina" .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study La Martina (A): "Pasion Argentina", Polo Martina 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 .
Regulatory challenges
– Polo Martina 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.
Environmental challenges
– Polo Martina 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. Polo Martina can take advantage of this fund but it will also bring new competitors in the Global Business 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.
Stagnating economy with rate increase
– Polo Martina 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. Polo Martina 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Polo Martina 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 La Martina (A): "Pasion Argentina" 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 La Martina (A): "Pasion Argentina" 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 La Martina (A): "Pasion Argentina" 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 La Martina (A): "Pasion Argentina" 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 La Martina (A): "Pasion Argentina" 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 Polo Martina needs to make to build a sustainable competitive advantage.
