TerraMai: Reclaimed Woods From Around the World, Video (DVD) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of TerraMai: Reclaimed Woods From Around the World, Video (DVD)
TerraMai: Reclaimed Woods from Around the World follows the business ventures of former river guides Erika Carpenter and Richard McFarland in the early days of the reclaimed wood industry. The TerraMai Video Supplement consists of the following four segments: Strategy & History: Erika Carpenter, TerraMai Cofounder, provides a history of the company and discusses TerraMai's competitive advantages: providing value added services in house and expertise in the lumber and reclaimed wood businesses. Looking to the future, TerraMai is aiming to be an industry leader by productizing the business and continuing to differentiate itself through strategic marketing. Lumber Yard: Richard MacFarland, TerraMai Confounder, discusses the operations of the lumber yard and why the company is diversifying its sources. TerraMai provides value by supplying hard to find dimensions and providing what MacFarland calls a "hand made product." Direct Sales: Danny Shelburne and Robert Haas, TerraMai sales associates, discuss how the sales department works and distinctions among types of customers. Associates need to be knowledgeable about all products as the organization has no division between products, types of customers, or geographic zones. The Chairman's Perspective: Ken Westrick, Chairman of TerraMai, discusses his role of bringing the business side to the company. Westrick builds on the years of technical experience that TerraMai founders have by bringing professional management, a vision for building the company into something big, and the drive to be leaders in the industry.
Swot Analysis of "TerraMai: Reclaimed Woods From Around the World, Video (DVD)" written by Chuck Holloway, Joshua Spitzer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Terramai Reclaimed facing as an external strategic factors. Some of the topics covered in TerraMai: Reclaimed Woods From Around the World, Video (DVD) case study are - Strategic Management Strategies, Joint ventures, Sales, Sustainability and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the TerraMai: Reclaimed Woods From Around the World, Video (DVD) casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, increasing household debt because of falling income levels,
increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of TerraMai: Reclaimed Woods From Around the World, Video (DVD)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TerraMai: Reclaimed Woods From Around the World, Video (DVD) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Terramai Reclaimed, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Terramai Reclaimed 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 TerraMai: Reclaimed Woods From Around the World, Video (DVD) can be done for the following purposes –
1. Strategic planning using facts provided in TerraMai: Reclaimed Woods From Around the World, Video (DVD) case study
2. Improving business portfolio management of Terramai Reclaimed
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 Terramai Reclaimed
Strengths TerraMai: Reclaimed Woods From Around the World, Video (DVD) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Terramai Reclaimed in TerraMai: Reclaimed Woods From Around the World, Video (DVD) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Terramai Reclaimed in the sector have low bargaining power. TerraMai: Reclaimed Woods From Around the World, Video (DVD) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Terramai Reclaimed to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Terramai Reclaimed 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 Chuck Holloway, Joshua Spitzer 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.
Operational resilience
– The operational resilience strategy in the TerraMai: Reclaimed Woods From Around the World, Video (DVD) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Organizational Resilience of Terramai Reclaimed
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Terramai Reclaimed does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Terramai Reclaimed 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 TerraMai: Reclaimed Woods From Around the World, Video (DVD) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Innovation & Entrepreneurship field
– Terramai Reclaimed 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 Terramai Reclaimed in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Terramai Reclaimed 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.
Training and development
– Terramai Reclaimed has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in TerraMai: Reclaimed Woods From Around the World, Video (DVD) 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.
Strong track record of project management
– Terramai Reclaimed 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 Terramai Reclaimed 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 Terramai Reclaimed in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Terramai Reclaimed has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Terramai Reclaimed 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.
Weaknesses TerraMai: Reclaimed Woods From Around the World, Video (DVD) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TerraMai: Reclaimed Woods From Around the World, Video (DVD) are -
Need for greater diversity
– Terramai Reclaimed 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.
Lack of clear differentiation of Terramai Reclaimed products
– To increase the profitability and margins on the products, Terramai Reclaimed needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Terramai Reclaimed is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study TerraMai: Reclaimed Woods From Around the World, Video (DVD) 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 bargaining power of channel partners
– Because of the regulatory requirements, Chuck Holloway, Joshua Spitzer suggests that, Terramai Reclaimed 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.
Increasing silos among functional specialists
– The organizational structure of Terramai Reclaimed is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Terramai Reclaimed needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Terramai Reclaimed to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the TerraMai: Reclaimed Woods From Around the World, Video (DVD) 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 Terramai Reclaimed has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As TerraMai: Reclaimed Woods From Around the World, Video (DVD) HBR case study mentions - Terramai Reclaimed 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.
Aligning sales with marketing
– It come across in the case study TerraMai: Reclaimed Woods From Around the World, Video (DVD) 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 TerraMai: Reclaimed Woods From Around the World, Video (DVD) can leverage the sales team experience to cultivate customer relationships as Terramai Reclaimed is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Terramai Reclaimed, firm in the HBR case study TerraMai: Reclaimed Woods From Around the World, Video (DVD) 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 TerraMai: Reclaimed Woods From Around the World, Video (DVD), is just above the industry average. Terramai Reclaimed 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.
Products dominated business model
– Even though Terramai Reclaimed 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 - TerraMai: Reclaimed Woods From Around the World, Video (DVD) should strive to include more intangible value offerings along with its core products and services.
Opportunities TerraMai: Reclaimed Woods From Around the World, Video (DVD) | 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 TerraMai: Reclaimed Woods From Around the World, Video (DVD) are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Terramai Reclaimed 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 Terramai Reclaimed to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Terramai Reclaimed can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. TerraMai: Reclaimed Woods From Around the World, Video (DVD) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Terramai Reclaimed can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Terramai Reclaimed 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.
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 Terramai Reclaimed 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.
Better consumer reach
– The expansion of the 5G network will help Terramai Reclaimed to increase its market reach. Terramai Reclaimed 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.
Leveraging digital technologies
– Terramai Reclaimed 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.
Manufacturing automation
– Terramai Reclaimed 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Terramai Reclaimed 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Terramai Reclaimed is facing challenges because of the dominance of functional experts in the organization. TerraMai: Reclaimed Woods From Around the World, Video (DVD) 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.
Learning at scale
– Online learning technologies has now opened space for Terramai Reclaimed 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.
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. Terramai Reclaimed can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Terramai Reclaimed 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.
Threats TerraMai: Reclaimed Woods From Around the World, Video (DVD) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TerraMai: Reclaimed Woods From Around the World, Video (DVD) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Terramai Reclaimed 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.
Environmental challenges
– Terramai Reclaimed 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. Terramai Reclaimed can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Terramai Reclaimed 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 TerraMai: Reclaimed Woods From Around the World, Video (DVD) .
Technology acceleration in Forth Industrial Revolution
– Terramai Reclaimed has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Terramai Reclaimed 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.
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 Terramai Reclaimed.
Increasing wage structure of Terramai Reclaimed
– 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 Terramai Reclaimed.
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. Terramai Reclaimed 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.
Consumer confidence and its impact on Terramai Reclaimed 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.
Shortening product life cycle
– it is one of the major threat that Terramai Reclaimed is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Terramai Reclaimed with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study TerraMai: Reclaimed Woods From Around the World, Video (DVD), Terramai Reclaimed 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 .
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 Terramai Reclaimed business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Terramai Reclaimed 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.
Weighted SWOT Analysis of TerraMai: Reclaimed Woods From Around the World, Video (DVD) 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 TerraMai: Reclaimed Woods From Around the World, Video (DVD) 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 TerraMai: Reclaimed Woods From Around the World, Video (DVD) 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 TerraMai: Reclaimed Woods From Around the World, Video (DVD) 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 TerraMai: Reclaimed Woods From Around the World, Video (DVD) 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 Terramai Reclaimed needs to make to build a sustainable competitive advantage.
