Carolina Pad and the Bloggers SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Carolina Pad and the Bloggers
Carolina Pad had received several requests for cash payments from internet bloggers in exchange for product reviews. The requests were for relatively small amounts (none more than $1000). The company believed that paying the bloggers' would offer a significantly higher rate of return on their promotional dollars than traditional advertising or other forms of promotion. Like many other companies, Carolina Pad provided review products to bloggers, but questioned whether cash payments were somehow different. The case examines the ethics of making cash and in-kind payments to bloggers for product reviews. The case also examines the question of whether bloggers are journalists and should adhere to the same journalist standards as news reporters or simply writers of internet infomercials.
Authors :: Steven Cox, Bradley W Brooks, S. Cathy Anderson, J. Norris Frederick
Swot Analysis of "Carolina Pad and the Bloggers" written by Steven Cox, Bradley W Brooks, S. Cathy Anderson, J. Norris Frederick includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bloggers Pad facing as an external strategic factors. Some of the topics covered in Carolina Pad and the Bloggers case study are - Strategic Management Strategies, Communication, Ethics, Internet, Marketing, Sales and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Carolina Pad and the Bloggers casestudy better are - – cloud computing is disrupting traditional business models, technology disruption, challanges to central banks by blockchain based private currencies, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , geopolitical disruptions,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, etc
Introduction to SWOT Analysis of Carolina Pad and the Bloggers
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Carolina Pad and the Bloggers case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bloggers Pad, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bloggers Pad 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 Carolina Pad and the Bloggers can be done for the following purposes –
1. Strategic planning using facts provided in Carolina Pad and the Bloggers case study
2. Improving business portfolio management of Bloggers Pad
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bloggers Pad
Strengths Carolina Pad and the Bloggers | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bloggers Pad in Carolina Pad and the Bloggers Harvard Business Review case study are -
Learning organization
- Bloggers Pad 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 Bloggers Pad is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Carolina Pad and the Bloggers Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Bloggers Pad has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Carolina Pad and the Bloggers 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.
Innovation driven organization
– Bloggers Pad is one of the most innovative firm in sector. Manager in Carolina Pad and the Bloggers Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Bloggers Pad has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bloggers Pad to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Bloggers Pad 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 Carolina Pad and the Bloggers HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Bloggers Pad is one of the leading recruiters in the industry. Managers in the Carolina Pad and the Bloggers are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Carolina Pad and the Bloggers firm has clearly differentiated products in the market place. This has enabled Bloggers Pad to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Bloggers Pad to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Bloggers Pad in the sector have low bargaining power. Carolina Pad and the Bloggers has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bloggers Pad to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Bloggers Pad digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bloggers Pad 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.
Effective Research and Development (R&D)
– Bloggers Pad 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 Carolina Pad and the Bloggers - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Bloggers Pad has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bloggers Pad 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.
Analytics focus
– Bloggers Pad 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 Steven Cox, Bradley W Brooks, S. Cathy Anderson, J. Norris Frederick 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.
Weaknesses Carolina Pad and the Bloggers | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Carolina Pad and the Bloggers are -
Increasing silos among functional specialists
– The organizational structure of Bloggers Pad is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Bloggers Pad needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bloggers Pad to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Bloggers Pad products
– To increase the profitability and margins on the products, Bloggers Pad needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Carolina Pad and the Bloggers 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 Bloggers Pad has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Carolina Pad and the Bloggers 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 Carolina Pad and the Bloggers can leverage the sales team experience to cultivate customer relationships as Bloggers Pad is planning to shift buying processes online.
Interest costs
– Compare to the competition, Bloggers Pad 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, Bloggers Pad is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Carolina Pad and the Bloggers can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study Carolina Pad and the Bloggers, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Low market penetration in new markets
– Outside its home market of Bloggers Pad, firm in the HBR case study Carolina Pad and the Bloggers needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Carolina Pad and the Bloggers, is just above the industry average. Bloggers Pad needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
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 Bloggers Pad supply chain. Even after few cautionary changes mentioned in the HBR case study - Carolina Pad and the Bloggers, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bloggers Pad vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Carolina Pad and the Bloggers, in the dynamic environment Bloggers Pad has struggled to respond to the nimble upstart competition. Bloggers Pad has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Carolina Pad and the Bloggers | 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 Carolina Pad and the Bloggers are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Bloggers Pad 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. Bloggers Pad 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.
Better consumer reach
– The expansion of the 5G network will help Bloggers Pad to increase its market reach. Bloggers Pad 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.
Manufacturing automation
– Bloggers Pad can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bloggers Pad is facing challenges because of the dominance of functional experts in the organization. Carolina Pad and the Bloggers 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, Bloggers Pad can use these opportunities to build new business models that can help the communities that Bloggers Pad operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Buying journey improvements
– Bloggers Pad can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Carolina Pad and the Bloggers 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bloggers Pad can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bloggers Pad 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.
Learning at scale
– Online learning technologies has now opened space for Bloggers Pad 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.
Using analytics as competitive advantage
– Bloggers Pad 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 Carolina Pad and the Bloggers - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bloggers Pad to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Bloggers Pad can develop new processes and procedures in Innovation & Entrepreneurship 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bloggers Pad 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, Carolina Pad and the Bloggers, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Bloggers Pad has opened avenues for new revenue streams for the organization in the industry. This can help Bloggers Pad to build a more holistic ecosystem as suggested in the Carolina Pad and the Bloggers case study. Bloggers Pad can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Carolina Pad and the Bloggers External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Carolina Pad and the Bloggers are -
Environmental challenges
– Bloggers Pad 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. Bloggers Pad can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Consumer confidence and its impact on Bloggers Pad 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.
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 Bloggers Pad.
Shortening product life cycle
– it is one of the major threat that Bloggers Pad is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Bloggers Pad in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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. Bloggers Pad 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bloggers Pad with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Bloggers Pad
– 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 Bloggers Pad.
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 Bloggers Pad business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Bloggers Pad has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Bloggers Pad needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Carolina Pad and the Bloggers, Bloggers Pad may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bloggers Pad in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
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 Carolina Pad and the Bloggers 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 Carolina Pad and the Bloggers 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 Carolina Pad and the Bloggers 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 Carolina Pad and the Bloggers 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 Carolina Pad and the Bloggers 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 Bloggers Pad needs to make to build a sustainable competitive advantage.
