Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics
In the run-up to the Beijing Olympics, China's US$5.714 billion outdoor advertising market, like the city itself, underwent a major overhaul. With the advancement of communication technologies, China's outdoor media scene saw the arrival of more and more digital-driven media formats geared toward capturing a population that was increasingly on the move. The government initiative to overhaul the city landscape had facilitated significant consolidation of China's previously decentralized outdoor media market and redefined the competitive landscape, giving rise to a handful of major players. Tulip Mega Media was founded by retired Chinese Olympic swimming champion Zhuang Yong and partner Wang Min in 1998. By July 2008, Tulip Mega Media's footprint not only covered Beijing, Shanghai, Guangzhou and Shenzhen, but stretched to a total of some 12 major cities in China. Its head-on competitor, Advision, another Shanghai-based outdoor digital media company, was racing against Tulip Mega Media in acquiring prime media sites and in attracting funding from the capital market. Could Tulip Mega Media rise to the challenge and replicate the success of some of its predecessors, such as Focus Media and AirMedia?
Swot Analysis of "Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics" written by Qiu Cheng, Josephine Lau includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tulip Media facing as an external strategic factors. Some of the topics covered in Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics case study are - Strategic Management Strategies, Marketing and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics casestudy better are - – there is increasing trade war between United States & China, increasing commodity prices, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, there is backlash against globalization,
increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tulip Media, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tulip Media 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 Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics can be done for the following purposes –
1. Strategic planning using facts provided in Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics case study
2. Improving business portfolio management of Tulip Media
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tulip Media
Strengths Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tulip Media in Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics Harvard Business Review case study are -
Analytics focus
– Tulip Media 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 Qiu Cheng, Josephine Lau 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.
Cross disciplinary teams
– Horizontal connected teams at the Tulip Media 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics firm has clearly differentiated products in the market place. This has enabled Tulip Media to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Tulip Media to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Tulip Media is present in almost all the verticals within the industry. This has provided firm in Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Operational resilience
– The operational resilience strategy in the Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics 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.
Effective Research and Development (R&D)
– Tulip Media 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 Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Tulip Media is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Leadership & Managing People field
– Tulip Media 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 Tulip Media 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
– Tulip Media has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tulip Media 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.
Superior customer experience
– The customer experience strategy of Tulip Media in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Tulip Media 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.
Ability to recruit top talent
– Tulip Media is one of the leading recruiters in the industry. Managers in the Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics are -
High operating costs
– Compare to the competitors, firm in the HBR case study Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics 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 Tulip Media 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics 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 Tulip Media has relatively successful track record of launching new products.
Need for greater diversity
– Tulip Media 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.
Skills based hiring
– The stress on hiring functional specialists at Tulip Media 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.
Interest costs
– Compare to the competition, Tulip Media has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to strategic competitive environment developments
– As Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics HBR case study mentions - Tulip Media 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.
Increasing silos among functional specialists
– The organizational structure of Tulip Media is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Tulip Media needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tulip Media to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Tulip Media 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 bargaining power of channel partners
– Because of the regulatory requirements, Qiu Cheng, Josephine Lau suggests that, Tulip Media 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.
Low market penetration in new markets
– Outside its home market of Tulip Media, firm in the HBR case study Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics 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 Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics, is just above the industry average. Tulip Media 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.
Opportunities Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics | 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 Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics are -
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 Tulip Media 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.
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. Tulip Media can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Tulip Media 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 Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tulip Media 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 Leadership & Managing People industry, but it has also influenced the consumer preferences. Tulip Media 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, Tulip Media can use these opportunities to build new business models that can help the communities that Tulip Media operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tulip Media 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, Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Tulip Media in the consumer business. Now Tulip Media can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Tulip Media can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics 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
– Tulip Media can develop new processes and procedures in Leadership & Managing People 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.
Learning at scale
– Online learning technologies has now opened space for Tulip Media 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Tulip Media 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. Tulip Media can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Better consumer reach
– The expansion of the 5G network will help Tulip Media to increase its market reach. Tulip Media 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tulip Media is facing challenges because of the dominance of functional experts in the organization. Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics 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.
Threats Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics are -
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 Tulip Media.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Tulip Media can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Tulip Media 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 Leadership & Managing People industry regulations.
Increasing wage structure of Tulip Media
– 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 Tulip Media.
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 Tulip Media business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Tulip Media 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 Tulip Media is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Tulip Media 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. Tulip Media can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Tulip Media 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 Tulip Media in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tulip Media 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 Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics .
Stagnating economy with rate increase
– Tulip Media 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tulip Media with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics 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 Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics 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 Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics 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 Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics 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 Outdoor Digital Media in China: Tulip Mega Media in the Run-Up to the Beijing Olympics 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 Tulip Media needs to make to build a sustainable competitive advantage.
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