Case Study Description of Growth Hacking at Bazaart (A)
The four founding members of Bazaart-a young Israeli company whose sole product was its eponymous mobile application (app) which allowed users to create collages from photographs and other images-face an important strategic decision in June 2014. Since its founding roughly two years earlier, the company had raised very little money from outside investors. Gili Golander, one of the founders and Bazaart's chief marketing officer, utilized a number of "growth hacking" techniques to generate downloads and build awareness at minimal cost. These techniques had proven successful and helped the firm reach 1 million downloads by June 2014. However the four founders debated whether to stay focused on growing Bazaart's user base and worry about driving revenue later, or try and monetize the app (by introducing in-app purchases, native advertising, or moving to a subscription model) and bring in some much needed revenue. Would growth hacking alone be enough to grow the company or should it utilize (and pay for) more traditional marketing? What approach would make the company more attractive to investors?
Swot Analysis of "Growth Hacking at Bazaart (A)" written by Jeffrey J. Bussgang, Matthew Preble includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hacking Bazaart facing as an external strategic factors. Some of the topics covered in Growth Hacking at Bazaart (A) case study are - Strategic Management Strategies, Growth strategy, Marketing, Sales, Technology and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Growth Hacking at Bazaart (A) casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, increasing energy prices, technology disruption, increasing commodity prices, increasing government debt because of Covid-19 spendings,
competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Growth Hacking at Bazaart (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Growth Hacking at Bazaart (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hacking Bazaart, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hacking Bazaart 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 Growth Hacking at Bazaart (A) can be done for the following purposes –
1. Strategic planning using facts provided in Growth Hacking at Bazaart (A) case study
2. Improving business portfolio management of Hacking Bazaart
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 Hacking Bazaart
Strengths Growth Hacking at Bazaart (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hacking Bazaart in Growth Hacking at Bazaart (A) Harvard Business Review case study are -
Ability to recruit top talent
– Hacking Bazaart is one of the leading recruiters in the industry. Managers in the Growth Hacking at Bazaart (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.
Organizational Resilience of Hacking Bazaart
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hacking Bazaart 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 Hacking Bazaart in the sector have low bargaining power. Growth Hacking at Bazaart (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hacking Bazaart to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Hacking Bazaart has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hacking Bazaart to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Innovation & Entrepreneurship field
– Hacking Bazaart 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 Hacking Bazaart in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Hacking Bazaart has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hacking Bazaart 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.
Effective Research and Development (R&D)
– Hacking Bazaart 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 Growth Hacking at Bazaart (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Growth Hacking at Bazaart (A) firm has clearly differentiated products in the market place. This has enabled Hacking Bazaart to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Hacking Bazaart to invest into research and development (R&D) and innovation.
Learning organization
- Hacking Bazaart 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 Hacking Bazaart is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Growth Hacking at Bazaart (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Hacking Bazaart 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.
Strong track record of project management
– Hacking Bazaart is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Hacking Bazaart digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hacking Bazaart 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.
Weaknesses Growth Hacking at Bazaart (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Growth Hacking at Bazaart (A) are -
High operating costs
– Compare to the competitors, firm in the HBR case study Growth Hacking at Bazaart (A) 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 Hacking Bazaart 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Hacking Bazaart, firm in the HBR case study Growth Hacking at Bazaart (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Hacking Bazaart 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.
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 Hacking Bazaart supply chain. Even after few cautionary changes mentioned in the HBR case study - Growth Hacking at Bazaart (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hacking Bazaart vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Hacking Bazaart 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 - Growth Hacking at Bazaart (A) should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hacking Bazaart is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Growth Hacking at Bazaart (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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Growth Hacking at Bazaart (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 Hacking Bazaart has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Hacking Bazaart is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Hacking Bazaart needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hacking Bazaart to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Hacking Bazaart 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.
Lack of clear differentiation of Hacking Bazaart products
– To increase the profitability and margins on the products, Hacking Bazaart needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Hacking Bazaart 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.
Opportunities Growth Hacking at Bazaart (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 Growth Hacking at Bazaart (A) are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Hacking Bazaart 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.
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. Hacking Bazaart can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Hacking Bazaart has opened avenues for new revenue streams for the organization in the industry. This can help Hacking Bazaart to build a more holistic ecosystem as suggested in the Growth Hacking at Bazaart (A) case study. Hacking Bazaart can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Hacking Bazaart 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hacking Bazaart 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, Growth Hacking at Bazaart (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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hacking Bazaart can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Hacking Bazaart in the consumer business. Now Hacking Bazaart can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hacking Bazaart 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 Hacking Bazaart to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hacking Bazaart can use these opportunities to build new business models that can help the communities that Hacking Bazaart operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Using analytics as competitive advantage
– Hacking Bazaart 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 Growth Hacking at Bazaart (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hacking Bazaart to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Hacking Bazaart 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. Hacking Bazaart 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.
Leveraging digital technologies
– Hacking Bazaart 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.
Developing new processes and practices
– Hacking Bazaart 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.
Threats Growth Hacking at Bazaart (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Growth Hacking at Bazaart (A) are -
Regulatory challenges
– Hacking Bazaart 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Growth Hacking at Bazaart (A), Hacking Bazaart 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 .
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 Hacking Bazaart in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hacking Bazaart 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hacking Bazaart 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 Growth Hacking at Bazaart (A) .
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. Hacking Bazaart 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.
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 Hacking Bazaart.
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 Hacking Bazaart business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Hacking Bazaart
– 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 Hacking Bazaart.
Shortening product life cycle
– it is one of the major threat that Hacking Bazaart is facing in Innovation & Entrepreneurship 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.
Technology acceleration in Forth Industrial Revolution
– Hacking Bazaart has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Hacking Bazaart 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.
High dependence on third party suppliers
– Hacking Bazaart 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.
Weighted SWOT Analysis of Growth Hacking at Bazaart (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 Growth Hacking at Bazaart (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 Growth Hacking at Bazaart (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 Growth Hacking at Bazaart (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 Growth Hacking at Bazaart (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 Hacking Bazaart needs to make to build a sustainable competitive advantage.