Spiegel-Verlag Rudolf Augstein GmbH & Co. KG SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Spiegel-Verlag Rudolf Augstein GmbH & Co. KG
Der Spiegel is Germany's most influential political news magazine. In the 1970's, its founder Rudolf Augstein gave a 50% ownership stake to his employees and sold another 25% to rival publisher Gruner+Jahr, but retained significant control during his lifetime by stipulating in the bylaws that every important business decision would require a 76% shareholder approval. When Augstein died in 2002, however, his co-owners exercised the option the same bylaws gave them to buy a 0.5% stake each from Augstein's heirs, who thus lost their veto rights. In September 2007, the benefits and costs of sharing ownership with employees become particularly salient when the employees block the CEO's proposal to acquire 50% of the Financial Times Deutschland. Faced with the new balance of power, Rudolf's eldest son Jakob Augstein is forced to rethink the role that his family can play in Spiegel going forward. Should he try to buy back the pivotal stake? Sell the family stake altogether? But to whom, and at what price?
Authors :: Belen Villalonga, Daniela Beyersdorfer, Vincent Dessain
Swot Analysis of "Spiegel-Verlag Rudolf Augstein GmbH & Co. KG" written by Belen Villalonga, Daniela Beyersdorfer, Vincent Dessain includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Augstein Spiegel facing as an external strategic factors. Some of the topics covered in Spiegel-Verlag Rudolf Augstein GmbH & Co. KG case study are - Strategic Management Strategies, Corporate governance and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Spiegel-Verlag Rudolf Augstein GmbH & Co. KG casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, technology disruption, cloud computing is disrupting traditional business models,
wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Spiegel-Verlag Rudolf Augstein GmbH & Co. KG
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Spiegel-Verlag Rudolf Augstein GmbH & Co. KG case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Augstein Spiegel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Augstein Spiegel 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 Spiegel-Verlag Rudolf Augstein GmbH & Co. KG can be done for the following purposes –
1. Strategic planning using facts provided in Spiegel-Verlag Rudolf Augstein GmbH & Co. KG case study
2. Improving business portfolio management of Augstein Spiegel
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 Augstein Spiegel
Strengths Spiegel-Verlag Rudolf Augstein GmbH & Co. KG | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Augstein Spiegel in Spiegel-Verlag Rudolf Augstein GmbH & Co. KG Harvard Business Review case study are -
Diverse revenue streams
– Augstein Spiegel is present in almost all the verticals within the industry. This has provided firm in Spiegel-Verlag Rudolf Augstein GmbH & Co. KG 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Spiegel-Verlag Rudolf Augstein GmbH & Co. KG firm has clearly differentiated products in the market place. This has enabled Augstein Spiegel to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Augstein Spiegel to invest into research and development (R&D) and innovation.
Analytics focus
– Augstein Spiegel 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 Belen Villalonga, Daniela Beyersdorfer, Vincent Dessain 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.
Innovation driven organization
– Augstein Spiegel is one of the most innovative firm in sector. Manager in Spiegel-Verlag Rudolf Augstein GmbH & Co. KG Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Augstein Spiegel digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Augstein Spiegel has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Training and development
– Augstein Spiegel has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Spiegel-Verlag Rudolf Augstein GmbH & Co. KG 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.
Ability to recruit top talent
– Augstein Spiegel is one of the leading recruiters in the industry. Managers in the Spiegel-Verlag Rudolf Augstein GmbH & Co. KG are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Augstein Spiegel 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 Augstein Spiegel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Spiegel-Verlag Rudolf Augstein GmbH & Co. KG Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Augstein Spiegel
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Augstein Spiegel 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 Augstein Spiegel in the sector have low bargaining power. Spiegel-Verlag Rudolf Augstein GmbH & Co. KG has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Augstein Spiegel to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Spiegel-Verlag Rudolf Augstein GmbH & Co. KG 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.
Highly skilled collaborators
– Augstein Spiegel 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 Spiegel-Verlag Rudolf Augstein GmbH & Co. KG HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Spiegel-Verlag Rudolf Augstein GmbH & Co. KG | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Spiegel-Verlag Rudolf Augstein GmbH & Co. KG are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Spiegel-Verlag Rudolf Augstein GmbH & Co. KG 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 Augstein Spiegel has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Augstein Spiegel 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Spiegel-Verlag Rudolf Augstein GmbH & Co. KG, in the dynamic environment Augstein Spiegel has struggled to respond to the nimble upstart competition. Augstein Spiegel has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Spiegel-Verlag Rudolf Augstein GmbH & Co. KG 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 Spiegel-Verlag Rudolf Augstein GmbH & Co. KG can leverage the sales team experience to cultivate customer relationships as Augstein Spiegel is planning to shift buying processes online.
High cash cycle compare to competitors
Augstein Spiegel 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.
No frontier risks strategy
– After analyzing the HBR case study Spiegel-Verlag Rudolf Augstein GmbH & Co. KG, 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.
Interest costs
– Compare to the competition, Augstein Spiegel 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.
Products dominated business model
– Even though Augstein Spiegel 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 - Spiegel-Verlag Rudolf Augstein GmbH & Co. KG should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Spiegel-Verlag Rudolf Augstein GmbH & Co. KG, it seems that the employees of Augstein Spiegel 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.
Increasing silos among functional specialists
– The organizational structure of Augstein Spiegel is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Augstein Spiegel needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Augstein Spiegel to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Augstein Spiegel products
– To increase the profitability and margins on the products, Augstein Spiegel needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Spiegel-Verlag Rudolf Augstein GmbH & Co. KG | 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 Spiegel-Verlag Rudolf Augstein GmbH & Co. KG are -
Manufacturing automation
– Augstein Spiegel 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Augstein Spiegel can use these opportunities to build new business models that can help the communities that Augstein Spiegel operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Creating value in data economy
– The success of analytics program of Augstein Spiegel has opened avenues for new revenue streams for the organization in the industry. This can help Augstein Spiegel to build a more holistic ecosystem as suggested in the Spiegel-Verlag Rudolf Augstein GmbH & Co. KG case study. Augstein Spiegel can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Augstein Spiegel 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 Augstein Spiegel 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Augstein Spiegel is facing challenges because of the dominance of functional experts in the organization. Spiegel-Verlag Rudolf Augstein GmbH & Co. KG 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.
Using analytics as competitive advantage
– Augstein Spiegel 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 Spiegel-Verlag Rudolf Augstein GmbH & Co. KG - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Augstein Spiegel to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Augstein Spiegel 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.
Buying journey improvements
– Augstein Spiegel can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Spiegel-Verlag Rudolf Augstein GmbH & Co. KG 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Augstein Spiegel can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Augstein Spiegel 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.
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. Augstein Spiegel can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Augstein Spiegel 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.
Threats Spiegel-Verlag Rudolf Augstein GmbH & Co. KG External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Spiegel-Verlag Rudolf Augstein GmbH & Co. KG are -
Technology acceleration in Forth Industrial Revolution
– Augstein Spiegel has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Augstein Spiegel needs to keep up with the evolution of technology in the Leadership & Managing People 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.
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. Augstein Spiegel 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 Augstein Spiegel.
Regulatory challenges
– Augstein Spiegel 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.
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 Augstein Spiegel business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Augstein Spiegel 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Spiegel-Verlag Rudolf Augstein GmbH & Co. KG, Augstein Spiegel 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 .
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 Augstein Spiegel 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, Augstein Spiegel 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 Spiegel-Verlag Rudolf Augstein GmbH & Co. KG .
Consumer confidence and its impact on Augstein Spiegel 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.
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. Augstein Spiegel needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Augstein Spiegel can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Spiegel-Verlag Rudolf Augstein GmbH & Co. KG 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 Spiegel-Verlag Rudolf Augstein GmbH & Co. KG 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 Spiegel-Verlag Rudolf Augstein GmbH & Co. KG 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 Spiegel-Verlag Rudolf Augstein GmbH & Co. KG 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 Spiegel-Verlag Rudolf Augstein GmbH & Co. KG 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 Augstein Spiegel needs to make to build a sustainable competitive advantage.