Swot Analysis of "KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland" written by Josh Lerner, Nathaniel Burbank includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Scout24 Ringier facing as an external strategic factors. Some of the topics covered in KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland case study are - Strategic Management Strategies, and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, there is backlash against globalization,
increasing household debt because of falling income levels, wage bills are increasing, etc
Introduction to SWOT Analysis of KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Scout24 Ringier, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Scout24 Ringier 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 KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland can be done for the following purposes –
1. Strategic planning using facts provided in KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland case study
2. Improving business portfolio management of Scout24 Ringier
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 Scout24 Ringier
Strengths KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Scout24 Ringier in KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland Harvard Business Review case study are -
Ability to lead change in Innovation & Entrepreneurship field
– Scout24 Ringier 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 Scout24 Ringier in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Scout24 Ringier in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Scout24 Ringier in the sector have low bargaining power. KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Scout24 Ringier to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Scout24 Ringier 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 KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Scout24 Ringier digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Scout24 Ringier 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.
Training and development
– Scout24 Ringier has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland 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.
Effective Research and Development (R&D)
– Scout24 Ringier 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 KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Scout24 Ringier 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 Scout24 Ringier is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Scout24 Ringier is one of the leading recruiters in the industry. Managers in the KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Scout24 Ringier is one of the most innovative firm in sector. Manager in KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland firm has clearly differentiated products in the market place. This has enabled Scout24 Ringier to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Scout24 Ringier to invest into research and development (R&D) and innovation.
Strong track record of project management
– Scout24 Ringier is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland are -
Lack of clear differentiation of Scout24 Ringier products
– To increase the profitability and margins on the products, Scout24 Ringier needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Scout24 Ringier 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 - KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland HBR case study mentions - Scout24 Ringier 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland, is just above the industry average. Scout24 Ringier 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.
Aligning sales with marketing
– It come across in the case study KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland 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 KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland can leverage the sales team experience to cultivate customer relationships as Scout24 Ringier 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, Scout24 Ringier is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Scout24 Ringier, firm in the HBR case study KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Scout24 Ringier 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. Scout24 Ringier 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.
Capital Spending Reduction
– Even during the low interest decade, Scout24 Ringier 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.
Skills based hiring
– The stress on hiring functional specialists at Scout24 Ringier has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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 Scout24 Ringier supply chain. Even after few cautionary changes mentioned in the HBR case study - KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Scout24 Ringier vulnerable to further global disruptions in South East Asia.
Opportunities KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland | 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 KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Scout24 Ringier is facing challenges because of the dominance of functional experts in the organization. KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland 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.
Leveraging digital technologies
– Scout24 Ringier 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.
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 Scout24 Ringier 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.
Building a culture of innovation
– managers at Scout24 Ringier 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.
Using analytics as competitive advantage
– Scout24 Ringier 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 KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Scout24 Ringier to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Scout24 Ringier can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Scout24 Ringier 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, KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland, 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
– Scout24 Ringier can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland 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.
Developing new processes and practices
– Scout24 Ringier 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Scout24 Ringier can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Scout24 Ringier can use these opportunities to build new business models that can help the communities that Scout24 Ringier operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Learning at scale
– Online learning technologies has now opened space for Scout24 Ringier 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.
Manufacturing automation
– Scout24 Ringier 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.
Threats KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland are -
High dependence on third party suppliers
– Scout24 Ringier 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.
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 Scout24 Ringier.
Technology acceleration in Forth Industrial Revolution
– Scout24 Ringier has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Scout24 Ringier 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Scout24 Ringier 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.
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 Scout24 Ringier business can come under increasing regulations regarding data privacy, data security, 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. Scout24 Ringier 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.
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 Scout24 Ringier in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Scout24 Ringier 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.
Regulatory challenges
– Scout24 Ringier 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 Innovation & Entrepreneurship industry regulations.
Environmental challenges
– Scout24 Ringier 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. Scout24 Ringier can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship 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.
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. Scout24 Ringier needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Increasing wage structure of Scout24 Ringier
– 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 Scout24 Ringier.
Weighted SWOT Analysis of KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland 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 KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland 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 KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland 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 KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland 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 KKR, Ringier Digital, and the Acquisition of Scout24 Switzerland 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 Scout24 Ringier needs to make to build a sustainable competitive advantage.
