Zidane's Last Red Card SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Zidane's Last Red Card
With more country participants than the United Nations, World Cup football (soccer) is one of the most multinational businesses in the world. Zinedane Zidane's headbutt of Marco Materazzi near the conclusion of the last match of the 2006 championship between France and Italy triggered a diverse range of questions and problems for FIFA and others. A host of ethical, business, legal (especially disciplinary regulations) and political implications of World Cup football find their genesis in Zidane's headbutt. This case was awarded the Indiana University CIBER Award for the "Best International Case" by the Academy of Legal Studies in Business in 2008.
Swot Analysis of "Zidane's Last Red Card" written by Cheryl Kirschner includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Zidane's Headbutt facing as an external strategic factors. Some of the topics covered in Zidane's Last Red Card case study are - Strategic Management Strategies, Ethics, International business, Policy, Regulation and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Zidane's Last Red Card casestudy better are - – geopolitical disruptions, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, increasing energy prices, increasing government debt because of Covid-19 spendings,
digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Zidane's Last Red Card
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Zidane's Last Red Card case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Zidane's Headbutt, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Zidane's Headbutt 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 Zidane's Last Red Card can be done for the following purposes –
1. Strategic planning using facts provided in Zidane's Last Red Card case study
2. Improving business portfolio management of Zidane's Headbutt
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 Zidane's Headbutt
Strengths Zidane's Last Red Card | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Zidane's Headbutt in Zidane's Last Red Card Harvard Business Review case study are -
Innovation driven organization
– Zidane's Headbutt is one of the most innovative firm in sector. Manager in Zidane's Last Red Card Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Zidane's Headbutt 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 Zidane's Last Red Card - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Zidane's Headbutt
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Zidane's Headbutt does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Zidane's Headbutt 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 Zidane's Headbutt is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Zidane's Last Red Card Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Zidane's Headbutt has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Zidane's Headbutt 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.
Strong track record of project management
– Zidane's Headbutt is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Leadership & Managing People industry
– Zidane's Last Red Card firm has clearly differentiated products in the market place. This has enabled Zidane's Headbutt to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Zidane's Headbutt to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Zidane's Last Red Card 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.
Superior customer experience
– The customer experience strategy of Zidane's Headbutt 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 Zidane's Headbutt in the sector have low bargaining power. Zidane's Last Red Card has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Zidane's Headbutt to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Zidane's Headbutt digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Zidane's Headbutt 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.
Analytics focus
– Zidane's Headbutt 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 Cheryl Kirschner 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.
Weaknesses Zidane's Last Red Card | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Zidane's Last Red Card are -
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 Zidane's Headbutt supply chain. Even after few cautionary changes mentioned in the HBR case study - Zidane's Last Red Card, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Zidane's Headbutt vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Zidane's Headbutt, firm in the HBR case study Zidane's Last Red Card needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Zidane's Headbutt products
– To increase the profitability and margins on the products, Zidane's Headbutt needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Zidane's Last Red Card 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 Zidane's Headbutt 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Zidane's Last Red Card, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Zidane's Headbutt is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Zidane's Last Red Card can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Zidane's Headbutt 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.
Increasing silos among functional specialists
– The organizational structure of Zidane's Headbutt is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Zidane's Headbutt needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Zidane's Headbutt to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Zidane's Last Red Card HBR case study mentions - Zidane's Headbutt 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Zidane's Last Red Card, it seems that the employees of Zidane's Headbutt don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, Zidane's Headbutt 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.
Opportunities Zidane's Last Red Card | 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 Zidane's Last Red Card are -
Using analytics as competitive advantage
– Zidane's Headbutt 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 Zidane's Last Red Card - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Zidane's Headbutt to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Zidane's Headbutt in the consumer business. Now Zidane's Headbutt can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Zidane's Headbutt 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.
Buying journey improvements
– Zidane's Headbutt can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Zidane's Last Red Card 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 Leadership & Managing People industry, but it has also influenced the consumer preferences. Zidane's Headbutt can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Zidane's Headbutt can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Zidane's Headbutt 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 Zidane's Headbutt to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Zidane's Headbutt 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Zidane's Headbutt in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Zidane's Headbutt 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 Leadership & Managing People segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Zidane's Headbutt can use these opportunities to build new business models that can help the communities that Zidane's Headbutt operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Learning at scale
– Online learning technologies has now opened space for Zidane's Headbutt 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. Zidane's Headbutt 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. Zidane's Headbutt 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.
Threats Zidane's Last Red Card External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Zidane's Last Red Card are -
Increasing wage structure of Zidane's Headbutt
– 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 Zidane's Headbutt.
High dependence on third party suppliers
– Zidane's Headbutt 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.
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. Zidane's Headbutt can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Zidane's Headbutt business can come under increasing regulations regarding data privacy, data security, etc.
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. Zidane's Headbutt needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Zidane's Last Red Card, Zidane's Headbutt may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Zidane's Headbutt in the Leadership & Managing People industry. The Leadership & Managing People 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.
Regulatory challenges
– Zidane's Headbutt 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.
Environmental challenges
– Zidane's Headbutt 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. Zidane's Headbutt can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 Zidane's Headbutt in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
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.
Shortening product life cycle
– it is one of the major threat that Zidane's Headbutt is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Zidane's Last Red Card 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 Zidane's Last Red Card 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 Zidane's Last Red Card 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 Zidane's Last Red Card 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 Zidane's Last Red Card 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 Zidane's Headbutt needs to make to build a sustainable competitive advantage.