HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View?
Professional boxing was once a mainstream sport, whose stars were widely known to the general public. Major fights were broadcast on network television. By the 2000s, the landscape had changed dramatically. Boxing had become a niche sport in the United States, few boxers were known beyond the hard-core fan base, top fights were only available on premium cable or pay-per-view (PPV), and other combat sports were on the rise. This case describes the world of professional boxing, including the roles of fighters, managers, promoters, and television. It focuses on a decision facing HBO, one of the important economic drivers of the sport. In September 2012, Julio Cesar Chavez Jr. lost a title fight to Sergio Martinez despite a thrilling final round. The fight was seen on HBO PPV. Most observers thought that a rematch would be held, and that it would attract a substantial PPV audience. However, Martinez planned a fight in his native Argentina prior to a potential rematch. Chavez would likely also have an interim fight. HBO considered the possibility of having the interim Chavez match on their cable channel rather than on PPV. This would make the fight available to more viewers, hopefully increasing the audience for the PPV rematch with Martinez, and would guarantee Chavez a sizable payment from television rights. However, if the fight were on PPV, Chavez would have the opportunity to earn more money based on PPV sales (and also take the risk of a lower payday if PPV sales did not meet expectations). If HBO believes that it is in the long term interest of the sport, the fighters, and HBO to have the fight on cable rather than PPV, how can they convince Chavez's promoter, and how can they help the promoter convince Chavez to accept a lower potential payday in exchange for an increased audience and the opportunity to build PPV sales for the planned rematch with Martinez?
Swot Analysis of "HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View?" written by George Foster, David Hoyt includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ppv Chavez facing as an external strategic factors. Some of the topics covered in HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? casestudy better are - – increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, technology disruption, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ppv Chavez, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ppv Chavez 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 HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? can be done for the following purposes –
1. Strategic planning using facts provided in HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? case study
2. Improving business portfolio management of Ppv Chavez
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 Ppv Chavez
Strengths HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ppv Chavez in HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Ppv Chavez 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 Ppv Chavez in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Ppv Chavez in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Ppv Chavez has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? 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
– Ppv Chavez is one of the leading recruiters in the industry. Managers in the HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Ppv Chavez 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 HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Ppv Chavez is present in almost all the verticals within the industry. This has provided firm in HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? 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
– HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? firm has clearly differentiated products in the market place. This has enabled Ppv Chavez to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Ppv Chavez to invest into research and development (R&D) and innovation.
Learning organization
- Ppv Chavez 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 Ppv Chavez is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Ppv Chavez 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 George Foster, David Hoyt 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 HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Ppv Chavez digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ppv Chavez 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.
Successful track record of launching new products
– Ppv Chavez has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ppv Chavez 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 HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? are -
High cash cycle compare to competitors
Ppv Chavez 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.
Increasing silos among functional specialists
– The organizational structure of Ppv Chavez is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Ppv Chavez needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ppv Chavez to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, George Foster, David Hoyt suggests that, Ppv Chavez 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.
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 Ppv Chavez supply chain. Even after few cautionary changes mentioned in the HBR case study - HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ppv Chavez vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Ppv Chavez 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 - HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ppv Chavez is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Ppv Chavez 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.
Need for greater diversity
– Ppv Chavez 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.
Aligning sales with marketing
– It come across in the case study HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? 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 HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? can leverage the sales team experience to cultivate customer relationships as Ppv Chavez is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View?, in the dynamic environment Ppv Chavez has struggled to respond to the nimble upstart competition. Ppv Chavez has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Ppv Chavez needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Opportunities HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? | 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 HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? are -
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. Ppv Chavez can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Ppv Chavez 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 HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ppv Chavez 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 Ppv Chavez in the consumer business. Now Ppv Chavez can target international markets with far fewer capital restrictions requirements than the existing system.
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. Ppv Chavez can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Ppv Chavez 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.
Buying journey improvements
– Ppv Chavez can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? 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.
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. Ppv Chavez 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. Ppv Chavez 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.
Creating value in data economy
– The success of analytics program of Ppv Chavez has opened avenues for new revenue streams for the organization in the industry. This can help Ppv Chavez to build a more holistic ecosystem as suggested in the HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? case study. Ppv Chavez can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Ppv Chavez to increase its market reach. Ppv Chavez 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.
Building a culture of innovation
– managers at Ppv Chavez 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ppv Chavez 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 Ppv Chavez to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Ppv Chavez 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ppv Chavez can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? are -
Shortening product life cycle
– it is one of the major threat that Ppv Chavez is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Ppv Chavez in the Leadership & Managing People sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ppv Chavez 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.
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. Ppv Chavez can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Ppv Chavez.
High dependence on third party suppliers
– Ppv Chavez 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.
Environmental challenges
– Ppv Chavez 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. Ppv Chavez can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing wage structure of Ppv Chavez
– 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 Ppv Chavez.
Stagnating economy with rate increase
– Ppv Chavez 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.
Regulatory challenges
– Ppv Chavez 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 Ppv Chavez business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View?, Ppv Chavez 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ppv Chavez 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 HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? .
Weighted SWOT Analysis of HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? 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 HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? 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 HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? 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 HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? 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 HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? 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 Ppv Chavez needs to make to build a sustainable competitive advantage.