Swot Analysis of "Nineteenth Century Retailing and the Rise of the Department Store" written by Richard S. Tedlow includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nineteenth Retailing facing as an external strategic factors. Some of the topics covered in Nineteenth Century Retailing and the Rise of the Department Store case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Nineteenth Century Retailing and the Rise of the Department Store casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, increasing energy prices, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings,
wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Nineteenth Century Retailing and the Rise of the Department Store
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Nineteenth Century Retailing and the Rise of the Department Store case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nineteenth Retailing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nineteenth Retailing 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 Nineteenth Century Retailing and the Rise of the Department Store can be done for the following purposes –
1. Strategic planning using facts provided in Nineteenth Century Retailing and the Rise of the Department Store case study
2. Improving business portfolio management of Nineteenth Retailing
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 Nineteenth Retailing
Strengths Nineteenth Century Retailing and the Rise of the Department Store | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nineteenth Retailing in Nineteenth Century Retailing and the Rise of the Department Store Harvard Business Review case study are -
Diverse revenue streams
– Nineteenth Retailing is present in almost all the verticals within the industry. This has provided firm in Nineteenth Century Retailing and the Rise of the Department Store 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Nineteenth Retailing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nineteenth Retailing 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
– Nineteenth Century Retailing and the Rise of the Department Store firm has clearly differentiated products in the market place. This has enabled Nineteenth Retailing to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Nineteenth Retailing to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Nineteenth Retailing 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 Nineteenth Century Retailing and the Rise of the Department Store HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Nineteenth Retailing 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 Richard S. Tedlow 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.
Training and development
– Nineteenth Retailing has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Nineteenth Century Retailing and the Rise of the Department Store 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.
Ability to lead change in Global Business field
– Nineteenth Retailing 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 Nineteenth Retailing in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Nineteenth Retailing 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 Nineteenth Century Retailing and the Rise of the Department Store - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Nineteenth Retailing is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Nineteenth Retailing 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.
Innovation driven organization
– Nineteenth Retailing is one of the most innovative firm in sector. Manager in Nineteenth Century Retailing and the Rise of the Department Store 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 Nineteenth Retailing 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.
Weaknesses Nineteenth Century Retailing and the Rise of the Department Store | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Nineteenth Century Retailing and the Rise of the Department Store are -
Workers concerns about automation
– As automation is fast increasing in the segment, Nineteenth Retailing needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Aligning sales with marketing
– It come across in the case study Nineteenth Century Retailing and the Rise of the Department Store 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 Nineteenth Century Retailing and the Rise of the Department Store can leverage the sales team experience to cultivate customer relationships as Nineteenth Retailing is planning to shift buying processes online.
Interest costs
– Compare to the competition, Nineteenth Retailing 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.
Products dominated business model
– Even though Nineteenth Retailing 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 - Nineteenth Century Retailing and the Rise of the Department Store should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Nineteenth Retailing 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 operating costs
– Compare to the competitors, firm in the HBR case study Nineteenth Century Retailing and the Rise of the Department Store 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 Nineteenth Retailing 's lucrative customers.
High cash cycle compare to competitors
Nineteenth Retailing 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Nineteenth Century Retailing and the Rise of the Department Store, in the dynamic environment Nineteenth Retailing has struggled to respond to the nimble upstart competition. Nineteenth Retailing has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nineteenth Retailing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Nineteenth Century Retailing and the Rise of the Department Store can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Nineteenth Century Retailing and the Rise of the Department Store 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 Nineteenth Retailing has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Nineteenth Century Retailing and the Rise of the Department Store, 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.
Opportunities Nineteenth Century Retailing and the Rise of the Department Store | 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 Nineteenth Century Retailing and the Rise of the Department Store are -
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. Nineteenth Retailing can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Nineteenth Retailing 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 Nineteenth Retailing to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Nineteenth Retailing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Nineteenth Century Retailing and the Rise of the Department Store 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.
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. Nineteenth Retailing can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Nineteenth Retailing in the consumer business. Now Nineteenth Retailing can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Nineteenth Retailing 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Nineteenth Retailing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Nineteenth Retailing 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.
Creating value in data economy
– The success of analytics program of Nineteenth Retailing has opened avenues for new revenue streams for the organization in the industry. This can help Nineteenth Retailing to build a more holistic ecosystem as suggested in the Nineteenth Century Retailing and the Rise of the Department Store case study. Nineteenth Retailing can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nineteenth Retailing 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, Nineteenth Century Retailing and the Rise of the Department Store, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nineteenth Retailing is facing challenges because of the dominance of functional experts in the organization. Nineteenth Century Retailing and the Rise of the Department Store 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nineteenth Retailing can use these opportunities to build new business models that can help the communities that Nineteenth Retailing operates in. Secondly it can use opportunities from government spending in Global Business sector.
Building a culture of innovation
– managers at Nineteenth Retailing 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.
Threats Nineteenth Century Retailing and the Rise of the Department Store External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Nineteenth Century Retailing and the Rise of the Department Store 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. Nineteenth Retailing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nineteenth Retailing 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 Nineteenth Century Retailing and the Rise of the Department Store .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nineteenth Retailing 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.
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. Nineteenth Retailing needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Increasing wage structure of Nineteenth Retailing
– 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 Nineteenth Retailing.
Consumer confidence and its impact on Nineteenth Retailing 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.
High dependence on third party suppliers
– Nineteenth Retailing 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 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
– Nineteenth Retailing 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. Nineteenth Retailing can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nineteenth Retailing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Nineteenth Retailing business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Nineteenth Retailing is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Weighted SWOT Analysis of Nineteenth Century Retailing and the Rise of the Department Store 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 Nineteenth Century Retailing and the Rise of the Department Store 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 Nineteenth Century Retailing and the Rise of the Department Store 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 Nineteenth Century Retailing and the Rise of the Department Store 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 Nineteenth Century Retailing and the Rise of the Department Store 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 Nineteenth Retailing needs to make to build a sustainable competitive advantage.