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 - – challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing,
geopolitical disruptions, 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 -
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.
Diverse revenue streams
– Ondademar Tribeca is present in almost all the verticals within the industry. This has provided firm in ONDADEMAR: CATCHING THE NEXT WAVE... 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.
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.
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.
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.
Superior customer experience
– The customer experience strategy of Ondademar Tribeca in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
Highly skilled collaborators
– Ondademar Tribeca 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 ONDADEMAR: CATCHING THE NEXT WAVE... HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
Learning organization
- Ondademar Tribeca 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 Ondademar Tribeca is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in ONDADEMAR: CATCHING THE NEXT WAVE... Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Ondademar Tribeca 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 Bryony Jansen, Benoit Leleux 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 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 -
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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ondademar Tribeca is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study ONDADEMAR: CATCHING THE NEXT WAVE... can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Ondademar Tribeca is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Ondademar Tribeca needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ondademar Tribeca to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study ONDADEMAR: CATCHING THE NEXT WAVE..., is just above the industry average. Ondademar Tribeca needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study ONDADEMAR: CATCHING THE NEXT WAVE... 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 Ondademar Tribeca 's lucrative customers.
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.
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 Ondademar Tribeca supply chain. Even after few cautionary changes mentioned in the HBR case study - ONDADEMAR: CATCHING THE NEXT WAVE..., it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ondademar Tribeca vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study ONDADEMAR: CATCHING THE NEXT WAVE..., 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.
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.
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 -
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ondademar Tribeca 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ondademar Tribeca 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.
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.
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.
Manufacturing automation
– Ondademar Tribeca 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
– 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ondademar Tribeca 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 Ondademar Tribeca to hire the very best people irrespective of their geographical location.
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.
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.
Leveraging digital technologies
– Ondademar Tribeca can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats 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 -
Environmental challenges
– Ondademar Tribeca 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. Ondademar Tribeca can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing wage structure of Ondademar Tribeca
– 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 Ondademar Tribeca.
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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study ONDADEMAR: CATCHING THE NEXT WAVE..., Ondademar Tribeca 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 .
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.
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 Ondademar Tribeca business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
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... .
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.
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.
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.