ONDADEMAR: CATCHING THE NEXT WAVE... SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of ONDADEMAR: CATCHING THE NEXT WAVE...
In the Summer of 2006, Luc Gerard and his Tribeca team had spent months talking to A?lvaro Arango, the co-managing partner of Colombia-based swimwear company OndadeMar. Tribeca had targeted the brand as a possible company to acquire.Arango proved eager to talk from the start. Since its inception, OndadeMar had gained significant recognition due to a combination of luck and the consistently high-quality designs it delivered. The company had potential to grow much further and faster. However, fuelling this growth required investments that went way beyond the two founders' own means. They were ready to sell. Negotiations went on for most of the summer with a number of potential buyers and investors, until Tribeca was granted an exclusive. Throughout the period, Alvaro handled the talks on behalf of the company. Pily Queipo, the other managing partner and the company's chief designer, never intervened. That became all too obvious on the day of closing with Tribeca Partners: She simply did not show up and refused to sign the purchase agreement. Unaware of the internal conflicts, Luc Gerard scheduled a meeting with Pily Queipo in her design studio in Miami. The meeting proved memorable. She was very much the jet-setting diva-cum-artist Arango had described. But she was also clearly the heart and talent of the company. For hours she spoke passionately about her brand, her designs, her dreams and her passions. She was the brand. She could not care less about the business issues; she wanted to remain with OndadeMar. Sitting on the plane back to BogotA?, his mind still buzzing with all the new information, Luc started putting all the deal pieces together again. He had targeted OndadeMar as the first building block of Tribeca Fashion, one of three pillars of the new private equity fund he had just raised in Colombia. Was this the right wave to ride first? Learning objectives: Building and managing a brand globally in the fashion industry; High-end fashion retailing; Globalization of brands; Growth financing in a global context; Emerging countries globalization.
Swot Analysis of "ONDADEMAR: CATCHING THE NEXT WAVE..." written by Bryony Jansen, Benoit Leleux includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ondademar Tribeca facing as an external strategic factors. Some of the topics covered in ONDADEMAR: CATCHING THE NEXT WAVE... case study are - Strategic Management Strategies, Entrepreneurial finance, Mergers & acquisitions and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the ONDADEMAR: CATCHING THE NEXT WAVE... casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, technology disruption, central banks are concerned over increasing inflation, increasing commodity prices, increasing energy prices,
talent flight as more people leaving formal jobs, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of ONDADEMAR: CATCHING THE NEXT WAVE...
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ONDADEMAR: CATCHING THE NEXT WAVE... case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ondademar Tribeca, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ondademar Tribeca 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 ONDADEMAR: CATCHING THE NEXT WAVE... can be done for the following purposes –
1. Strategic planning using facts provided in ONDADEMAR: CATCHING THE NEXT WAVE... case study
2. Improving business portfolio management of Ondademar Tribeca
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 Ondademar Tribeca
Strengths ONDADEMAR: CATCHING THE NEXT WAVE... | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ondademar Tribeca in ONDADEMAR: CATCHING THE NEXT WAVE... Harvard Business Review case study are -
Effective Research and Development (R&D)
– Ondademar Tribeca 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 ONDADEMAR: CATCHING THE NEXT WAVE... - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Ondademar Tribeca is one of the leading recruiters in the industry. Managers in the ONDADEMAR: CATCHING THE NEXT WAVE... 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
– Ondademar Tribeca is one of the most innovative firm in sector. Manager in ONDADEMAR: CATCHING THE NEXT WAVE... Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Leadership & Managing People field
– Ondademar Tribeca 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 Ondademar Tribeca 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 Ondademar Tribeca in the sector have low bargaining power. ONDADEMAR: CATCHING THE NEXT WAVE... has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ondademar Tribeca to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Ondademar Tribeca 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.
Strong track record of project management
– Ondademar Tribeca is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Ondademar Tribeca has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in ONDADEMAR: CATCHING THE NEXT WAVE... 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.
High brand equity
– Ondademar Tribeca has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ondademar Tribeca to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Ondademar Tribeca has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ondademar Tribeca 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.
Cross disciplinary teams
– Horizontal connected teams at the Ondademar Tribeca 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.
Operational resilience
– The operational resilience strategy in the ONDADEMAR: CATCHING THE NEXT WAVE... 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.
Weaknesses ONDADEMAR: CATCHING THE NEXT WAVE... | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ONDADEMAR: CATCHING THE NEXT WAVE... are -
Need for greater diversity
– Ondademar Tribeca 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 ONDADEMAR: CATCHING THE NEXT WAVE... 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 ONDADEMAR: CATCHING THE NEXT WAVE... can leverage the sales team experience to cultivate customer relationships as Ondademar Tribeca is planning to shift buying processes online.
Interest costs
– Compare to the competition, Ondademar Tribeca 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.
Capital Spending Reduction
– Even during the low interest decade, Ondademar Tribeca 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Bryony Jansen, Benoit Leleux suggests that, Ondademar Tribeca 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 Ondademar Tribeca, firm in the HBR case study ONDADEMAR: CATCHING THE NEXT WAVE... needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the ONDADEMAR: CATCHING THE NEXT WAVE... 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 Ondademar Tribeca has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study ONDADEMAR: CATCHING THE NEXT WAVE..., it seems that the employees of Ondademar Tribeca 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.
Lack of clear differentiation of Ondademar Tribeca products
– To increase the profitability and margins on the products, Ondademar Tribeca needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study ONDADEMAR: CATCHING THE NEXT WAVE..., in the dynamic environment Ondademar Tribeca has struggled to respond to the nimble upstart competition. Ondademar Tribeca has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As ONDADEMAR: CATCHING THE NEXT WAVE... HBR case study mentions - Ondademar Tribeca takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Opportunities ONDADEMAR: CATCHING THE NEXT WAVE... | 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 ONDADEMAR: CATCHING THE NEXT WAVE... are -
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 Ondademar Tribeca 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.
Building a culture of innovation
– managers at Ondademar Tribeca 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.
Learning at scale
– Online learning technologies has now opened space for Ondademar Tribeca 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.
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. Ondademar Tribeca can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Ondademar Tribeca can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. ONDADEMAR: CATCHING THE NEXT WAVE... 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.
Creating value in data economy
– The success of analytics program of Ondademar Tribeca has opened avenues for new revenue streams for the organization in the industry. This can help Ondademar Tribeca to build a more holistic ecosystem as suggested in the ONDADEMAR: CATCHING THE NEXT WAVE... case study. Ondademar Tribeca can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ondademar Tribeca can use these opportunities to build new business models that can help the communities that Ondademar Tribeca operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ondademar Tribeca is facing challenges because of the dominance of functional experts in the organization. ONDADEMAR: CATCHING THE NEXT WAVE... 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ondademar Tribeca 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, ONDADEMAR: CATCHING THE NEXT WAVE..., to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Ondademar Tribeca 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 ONDADEMAR: CATCHING THE NEXT WAVE... - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ondademar Tribeca to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Ondademar Tribeca has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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. Ondademar Tribeca 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. Ondademar Tribeca 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.
Developing new processes and practices
– Ondademar Tribeca 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 ONDADEMAR: CATCHING THE NEXT WAVE... External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ONDADEMAR: CATCHING THE NEXT WAVE... 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. Ondademar Tribeca can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Ondademar Tribeca 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ondademar Tribeca 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 ONDADEMAR: CATCHING THE NEXT WAVE... .
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 Ondademar Tribeca in the Leadership & Managing People sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Ondademar Tribeca 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.
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. Ondademar Tribeca 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 Ondademar Tribeca 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 Ondademar Tribeca with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Ondademar Tribeca has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Ondademar Tribeca 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.
Regulatory challenges
– Ondademar Tribeca 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.
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 Ondademar Tribeca.
Shortening product life cycle
– it is one of the major threat that Ondademar Tribeca is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of ONDADEMAR: CATCHING THE NEXT WAVE... 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 ONDADEMAR: CATCHING THE NEXT WAVE... 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 ONDADEMAR: CATCHING THE NEXT WAVE... 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 ONDADEMAR: CATCHING THE NEXT WAVE... 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 ONDADEMAR: CATCHING THE NEXT WAVE... 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 Ondademar Tribeca needs to make to build a sustainable competitive advantage.
