Case Study Description of Wildfire Interactive Inc. (A)
It was June 2011, and Alain Chuard and Victoria Ransom reflected on their history as founders of Wildfire Interactive Inc. (Wildfire). Originally called Promotion Builder, Wildfire had evolved from an in-house marketing solution used by the duo's adventure travel company to a multi-platform software program used by thousands of businesses globally. The Wildfire product enabled these customers to develop customized social-media marketing campaigns composed of video and essay competitions, user-generated contests, quizzes, and coupons. Users could then push these promotions to their websites or social networks, such as Facebook, hi5, and LinkedIn. Through this evolution, the team contended with a myriad of difficulties, including attracting talent, navigating international markets, and building and scaling operations. In particular, obstacles associated with cultural differences and geographical distance made it challenging for the company to maintain effective operations overseas. Moreover, relative to its competitors, Wildfire was substantially under-funded and under-marketed. This made it difficult for the founders to decide when the company should either accept or turn away lucrative-yet demanding-high-profile customers. Chuard and Ransom were now at another critical decision point in the organization's lifecycle. Wildfire had traditionally been a campaign-based product. Under this model, Wildfire was offered to customers for an initial fee plus a per-day charge, the size of which was dependent upon the feature set chosen by the customer. Recent pressures from investors and consumers, however, had pushed the founders to consider a transition to a subscription-based platform that would provide timeline and stream management, analytics, and page-management functionality. Whereas the founders knew that transforming business models could have various positive effects for Wildfire, implementing the change would also inherently alter the company and its product
Swot Analysis of "Wildfire Interactive Inc. (A)" written by George Foster, Jason Luther includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wildfire Chuard facing as an external strategic factors. Some of the topics covered in Wildfire Interactive Inc. (A) case study are - Strategic Management Strategies, Marketing, Mergers & acquisitions, Social platforms and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Wildfire Interactive Inc. (A) casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, increasing transportation and logistics costs, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, challanges to central banks by blockchain based private currencies,
digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Wildfire Interactive Inc. (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Wildfire Interactive Inc. (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wildfire Chuard, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wildfire Chuard 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 Wildfire Interactive Inc. (A) can be done for the following purposes –
1. Strategic planning using facts provided in Wildfire Interactive Inc. (A) case study
2. Improving business portfolio management of Wildfire Chuard
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 Wildfire Chuard
Strengths Wildfire Interactive Inc. (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wildfire Chuard in Wildfire Interactive Inc. (A) Harvard Business Review case study are -
Innovation driven organization
– Wildfire Chuard is one of the most innovative firm in sector. Manager in Wildfire Interactive Inc. (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Wildfire Chuard has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Wildfire Interactive Inc. (A) 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.
Cross disciplinary teams
– Horizontal connected teams at the Wildfire Chuard 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Wildfire Chuard digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wildfire Chuard 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.
Organizational Resilience of Wildfire Chuard
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wildfire Chuard does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Wildfire Chuard in the sector have low bargaining power. Wildfire Interactive Inc. (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wildfire Chuard to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Wildfire Chuard has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Wildfire Chuard 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.
Ability to recruit top talent
– Wildfire Chuard is one of the leading recruiters in the industry. Managers in the Wildfire Interactive Inc. (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Wildfire Chuard 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 Wildfire Interactive Inc. (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Wildfire Chuard is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Wildfire Chuard 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.
Superior customer experience
– The customer experience strategy of Wildfire Chuard in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Wildfire Interactive Inc. (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Wildfire Interactive Inc. (A) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Wildfire Interactive Inc. (A), is just above the industry average. Wildfire Chuard 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.
Low market penetration in new markets
– Outside its home market of Wildfire Chuard, firm in the HBR case study Wildfire Interactive Inc. (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Wildfire Interactive Inc. (A) 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 Wildfire Chuard has relatively successful track record of launching new products.
High cash cycle compare to competitors
Wildfire Chuard 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.
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 Wildfire Chuard supply chain. Even after few cautionary changes mentioned in the HBR case study - Wildfire Interactive Inc. (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wildfire Chuard vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Wildfire Chuard 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.
Increasing silos among functional specialists
– The organizational structure of Wildfire Chuard is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Wildfire Chuard needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Wildfire Chuard to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Wildfire Interactive Inc. (A) 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 Wildfire Interactive Inc. (A) can leverage the sales team experience to cultivate customer relationships as Wildfire Chuard is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wildfire Chuard is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Wildfire Interactive Inc. (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Wildfire Chuard 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.
High bargaining power of channel partners
– Because of the regulatory requirements, George Foster, Jason Luther suggests that, Wildfire Chuard 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.
Opportunities Wildfire Interactive Inc. (A) | 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 Wildfire Interactive Inc. (A) are -
Learning at scale
– Online learning technologies has now opened space for Wildfire Chuard 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, Wildfire Chuard 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, Wildfire Interactive Inc. (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Wildfire Chuard 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.
Building a culture of innovation
– managers at Wildfire Chuard 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 Innovation & Entrepreneurship segment.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Wildfire Chuard to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Using analytics as competitive advantage
– Wildfire Chuard 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 Wildfire Interactive Inc. (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Wildfire Chuard to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wildfire Chuard is facing challenges because of the dominance of functional experts in the organization. Wildfire Interactive Inc. (A) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Wildfire Chuard in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Buying journey improvements
– Wildfire Chuard can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Wildfire Interactive Inc. (A) 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.
Loyalty marketing
– Wildfire Chuard 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Wildfire Chuard can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wildfire Chuard can use these opportunities to build new business models that can help the communities that Wildfire Chuard operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Leveraging digital technologies
– Wildfire Chuard 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.
Threats Wildfire Interactive Inc. (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Wildfire Interactive Inc. (A) are -
Shortening product life cycle
– it is one of the major threat that Wildfire Chuard is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Wildfire Chuard 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. Wildfire Chuard needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Wildfire Chuard with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Wildfire Chuard 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Wildfire Interactive Inc. (A), Wildfire Chuard 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 .
Increasing wage structure of Wildfire Chuard
– 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 Wildfire Chuard.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wildfire Chuard 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 Wildfire Interactive Inc. (A) .
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.
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 Wildfire Chuard in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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 Wildfire Chuard business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Wildfire Chuard 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.
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 Wildfire Chuard.
Weighted SWOT Analysis of Wildfire Interactive Inc. (A) 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 Wildfire Interactive Inc. (A) 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 Wildfire Interactive Inc. (A) 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 Wildfire Interactive Inc. (A) 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 Wildfire Interactive Inc. (A) 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 Wildfire Chuard needs to make to build a sustainable competitive advantage.