Snapdeal.com had launched as a platform for online discount coupons, then revamped its business model in the evolving Indian e-commerce sector to become one of India's largest e-commerce retailers. In India's rapidly growing market, the major players jockeyed for the top position and used various business models and strategic initiatives. Now, the entry of Amazon into the industry challenged the market dynamics and Snapdeal.com faced challenges of funding, positioning, and consumer dissatisfaction. How could it address these challenges to sustain its position as a leading Indian e-retailer? Would it be able to face the growing domestic and global competition? Would it be acquired by a global player, such as eBay, which was already a stakeholder and was perhaps waiting for the right moment to make its strategic move in India? Was coming out with an initial public offering a possible step in the future? Tripti Ghosh Sharma is affiliated with Institute of Management Technology-Ghaziabad.
Swot Analysis of "Snapdeal.com" written by Tripti Ghosh Sharma, Dheeraj Tewani, Laksh Sharma, Amit Sharma includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Snapdeal.com Jockeyed facing as an external strategic factors. Some of the topics covered in Snapdeal.com case study are - Strategic Management Strategies, Competition, International business, Marketing and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Snapdeal.com casestudy better are - – supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion,
challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Snapdeal.com case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Snapdeal.com Jockeyed, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Snapdeal.com Jockeyed 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 Snapdeal.com can be done for the following purposes –
1. Strategic planning using facts provided in Snapdeal.com case study
2. Improving business portfolio management of Snapdeal.com Jockeyed
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 Snapdeal.com Jockeyed
Strengths Snapdeal.com | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Snapdeal.com Jockeyed in Snapdeal.com Harvard Business Review case study are -
Innovation driven organization
– Snapdeal.com Jockeyed is one of the most innovative firm in sector. Manager in Snapdeal.com 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 Snapdeal.com Jockeyed digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Snapdeal.com Jockeyed 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.
High brand equity
– Snapdeal.com Jockeyed has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Snapdeal.com Jockeyed to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Snapdeal.com Jockeyed 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 Snapdeal.com HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Snapdeal.com Jockeyed 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
– Snapdeal.com firm has clearly differentiated products in the market place. This has enabled Snapdeal.com Jockeyed to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Snapdeal.com Jockeyed to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Snapdeal.com Jockeyed 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 Snapdeal.com - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Snapdeal.com Jockeyed has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Snapdeal.com Jockeyed 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.
Ability to recruit top talent
– Snapdeal.com Jockeyed is one of the leading recruiters in the industry. Managers in the Snapdeal.com are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Leadership & Managing People field
– Snapdeal.com Jockeyed 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 Snapdeal.com Jockeyed in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Snapdeal.com Jockeyed in the sector have low bargaining power. Snapdeal.com has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Snapdeal.com Jockeyed to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Snapdeal.com Jockeyed 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 Tripti Ghosh Sharma, Dheeraj Tewani, Laksh Sharma, Amit Sharma 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 Snapdeal.com | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Snapdeal.com are -
Need for greater diversity
– Snapdeal.com Jockeyed 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.
Slow decision making process
– As mentioned earlier in the report, Snapdeal.com Jockeyed has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Snapdeal.com Jockeyed even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Aligning sales with marketing
– It come across in the case study Snapdeal.com 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 Snapdeal.com can leverage the sales team experience to cultivate customer relationships as Snapdeal.com Jockeyed 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 Snapdeal.com, in the dynamic environment Snapdeal.com Jockeyed has struggled to respond to the nimble upstart competition. Snapdeal.com Jockeyed 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, Snapdeal.com Jockeyed 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Snapdeal.com 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 Snapdeal.com Jockeyed 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Snapdeal.com 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 Snapdeal.com Jockeyed has relatively successful track record of launching new products.
Products dominated business model
– Even though Snapdeal.com Jockeyed 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 - Snapdeal.com should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Tripti Ghosh Sharma, Dheeraj Tewani, Laksh Sharma, Amit Sharma suggests that, Snapdeal.com Jockeyed 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 Snapdeal.com Jockeyed, firm in the HBR case study Snapdeal.com needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Snapdeal.com Jockeyed 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.
Opportunities Snapdeal.com | 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 Snapdeal.com are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Snapdeal.com Jockeyed 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, Snapdeal.com, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Snapdeal.com Jockeyed 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.
Better consumer reach
– The expansion of the 5G network will help Snapdeal.com Jockeyed to increase its market reach. Snapdeal.com Jockeyed 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.
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 Snapdeal.com Jockeyed in the consumer business. Now Snapdeal.com Jockeyed can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Snapdeal.com Jockeyed 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 Snapdeal.com Jockeyed to hire the very best people irrespective of their geographical location.
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. Snapdeal.com Jockeyed can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Snapdeal.com Jockeyed 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.
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. Snapdeal.com Jockeyed 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. Snapdeal.com Jockeyed 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.
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. Snapdeal.com Jockeyed can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Snapdeal.com Jockeyed can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Snapdeal.com 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.
Manufacturing automation
– Snapdeal.com Jockeyed 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.
Using analytics as competitive advantage
– Snapdeal.com Jockeyed 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 Snapdeal.com - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Snapdeal.com Jockeyed to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Snapdeal.com Jockeyed 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.
Threats Snapdeal.com External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Snapdeal.com are -
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. Snapdeal.com Jockeyed can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Snapdeal.com Jockeyed
– 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 Snapdeal.com Jockeyed.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Snapdeal.com, Snapdeal.com Jockeyed 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 .
Stagnating economy with rate increase
– Snapdeal.com Jockeyed 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.
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 Snapdeal.com Jockeyed business can come under increasing regulations regarding data privacy, data security, etc.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Snapdeal.com Jockeyed 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.
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. Snapdeal.com Jockeyed needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Consumer confidence and its impact on Snapdeal.com Jockeyed 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Snapdeal.com Jockeyed 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 Snapdeal.com .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Snapdeal.com Jockeyed with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Snapdeal.com Jockeyed.
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 Snapdeal.com Jockeyed in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Snapdeal.com 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 Snapdeal.com 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 Snapdeal.com 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 Snapdeal.com 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 Snapdeal.com 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 Snapdeal.com Jockeyed needs to make to build a sustainable competitive advantage.
