iQmetrix: The Customer Is Always Right? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of iQmetrix: The Customer Is Always Right?
iQmetrix, a company founded in 1999, developed and sold point-of-sale (POS) software using the software-as-a-service model. Two iQmetrix enterprise account managers were discussing strategies for closing a software subscription deal with a large customer who asked for significant customization to be completed before the deal could be signed. The customization appeared to be critical for the customer, and the account managers thought the added functionality might be valuable for the rest of the company's customer base. iQmetrix's product was specialized for use by mobile wireless retailers, and the company was the current market leader with approximately 60 per cent of the POS market in Canada and the United States. The company's executives now needed to make a decision. Should iQmetrix commit to the customer's request for significant customization?
Authors :: Chris Street, Darren Meister, Tracy Thibodeau
Swot Analysis of "iQmetrix: The Customer Is Always Right?" written by Chris Street, Darren Meister, Tracy Thibodeau includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Iqmetrix Customization facing as an external strategic factors. Some of the topics covered in iQmetrix: The Customer Is Always Right? case study are - Strategic Management Strategies, Operations management, Product development, Strategy, Technology and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the iQmetrix: The Customer Is Always Right? casestudy better are - – increasing transportation and logistics costs, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, technology disruption, increasing commodity prices,
challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of iQmetrix: The Customer Is Always Right?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in iQmetrix: The Customer Is Always Right? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Iqmetrix Customization, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Iqmetrix Customization 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 iQmetrix: The Customer Is Always Right? can be done for the following purposes –
1. Strategic planning using facts provided in iQmetrix: The Customer Is Always Right? case study
2. Improving business portfolio management of Iqmetrix Customization
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 Iqmetrix Customization
Strengths iQmetrix: The Customer Is Always Right? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Iqmetrix Customization in iQmetrix: The Customer Is Always Right? Harvard Business Review case study are -
High switching costs
– The high switching costs that Iqmetrix Customization has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Superior customer experience
– The customer experience strategy of Iqmetrix Customization in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Iqmetrix Customization 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Iqmetrix Customization digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Iqmetrix Customization 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.
Effective Research and Development (R&D)
– Iqmetrix Customization 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 iQmetrix: The Customer Is Always Right? - 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
– Iqmetrix Customization has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Iqmetrix Customization 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
– Iqmetrix Customization is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Iqmetrix Customization is present in almost all the verticals within the industry. This has provided firm in iQmetrix: The Customer Is Always Right? 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.
Ability to recruit top talent
– Iqmetrix Customization is one of the leading recruiters in the industry. Managers in the iQmetrix: The Customer Is Always Right? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Iqmetrix Customization is one of the most innovative firm in sector. Manager in iQmetrix: The Customer Is Always Right? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Leadership & Managing People industry
– iQmetrix: The Customer Is Always Right? firm has clearly differentiated products in the market place. This has enabled Iqmetrix Customization to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Iqmetrix Customization to invest into research and development (R&D) and innovation.
Training and development
– Iqmetrix Customization has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in iQmetrix: The Customer Is Always Right? 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.
Weaknesses iQmetrix: The Customer Is Always Right? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of iQmetrix: The Customer Is Always Right? are -
Interest costs
– Compare to the competition, Iqmetrix Customization 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 Iqmetrix Customization 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 - iQmetrix: The Customer Is Always Right? should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Iqmetrix Customization products
– To increase the profitability and margins on the products, Iqmetrix Customization needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study iQmetrix: The Customer Is Always Right?, 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.
High cash cycle compare to competitors
Iqmetrix Customization 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.
Slow decision making process
– As mentioned earlier in the report, Iqmetrix Customization 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. Iqmetrix Customization 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Iqmetrix Customization 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.
Skills based hiring
– The stress on hiring functional specialists at Iqmetrix Customization has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study iQmetrix: The Customer Is Always Right?, in the dynamic environment Iqmetrix Customization has struggled to respond to the nimble upstart competition. Iqmetrix Customization has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Iqmetrix Customization, firm in the HBR case study iQmetrix: The Customer Is Always Right? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study iQmetrix: The Customer Is Always Right? 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 iQmetrix: The Customer Is Always Right? can leverage the sales team experience to cultivate customer relationships as Iqmetrix Customization is planning to shift buying processes online.
Opportunities iQmetrix: The Customer Is Always Right? | 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 iQmetrix: The Customer Is Always Right? are -
Using analytics as competitive advantage
– Iqmetrix Customization 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 iQmetrix: The Customer Is Always Right? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Iqmetrix Customization to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Iqmetrix Customization is facing challenges because of the dominance of functional experts in the organization. iQmetrix: The Customer Is Always Right? 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.
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. Iqmetrix Customization can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Iqmetrix Customization 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.
Learning at scale
– Online learning technologies has now opened space for Iqmetrix Customization 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. Iqmetrix Customization 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. Iqmetrix Customization 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Iqmetrix Customization 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 Iqmetrix Customization to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Iqmetrix Customization can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Iqmetrix Customization 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.
Better consumer reach
– The expansion of the 5G network will help Iqmetrix Customization to increase its market reach. Iqmetrix Customization 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.
Buying journey improvements
– Iqmetrix Customization can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. iQmetrix: The Customer Is Always Right? 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Iqmetrix Customization 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.
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 Iqmetrix Customization in the consumer business. Now Iqmetrix Customization can target international markets with far fewer capital restrictions requirements than the existing system.
Threats iQmetrix: The Customer Is Always Right? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study iQmetrix: The Customer Is Always Right? are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Iqmetrix Customization 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 iQmetrix: The Customer Is Always Right? .
Stagnating economy with rate increase
– Iqmetrix Customization 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.
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. Iqmetrix Customization needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
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 Iqmetrix Customization.
Technology acceleration in Forth Industrial Revolution
– Iqmetrix Customization has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Iqmetrix Customization 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.
Increasing wage structure of Iqmetrix Customization
– 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 Iqmetrix Customization.
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.
Consumer confidence and its impact on Iqmetrix Customization 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Iqmetrix Customization with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Iqmetrix Customization business can come under increasing regulations regarding data privacy, data security, 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 Iqmetrix Customization in the Leadership & Managing People sector and impact the bottomline of the organization.
Environmental challenges
– Iqmetrix Customization 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. Iqmetrix Customization can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Weighted SWOT Analysis of iQmetrix: The Customer Is Always Right? 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 iQmetrix: The Customer Is Always Right? 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 iQmetrix: The Customer Is Always Right? 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 iQmetrix: The Customer Is Always Right? 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 iQmetrix: The Customer Is Always Right? 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 Iqmetrix Customization needs to make to build a sustainable competitive advantage.
