The Fab Four of Tennis SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Fab Four of Tennis
In recent years, men's tennis has been dominated by Roger Federer, Rafeal Nadal, Novak Djokovic and Andy Murray. The question is whether their performance depends on the type of court surface.
Authors :: Srinivas Krishnamoorthy, Jonathan Pinto
Swot Analysis of "The Fab Four of Tennis" written by Srinivas Krishnamoorthy, Jonathan Pinto includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tennis Djokovic facing as an external strategic factors. Some of the topics covered in The Fab Four of Tennis case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the The Fab Four of Tennis casestudy better are - – talent flight as more people leaving formal jobs, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%,
challanges to central banks by blockchain based private currencies, technology disruption, etc
Introduction to SWOT Analysis of The Fab Four of Tennis
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Fab Four of Tennis case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tennis Djokovic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tennis Djokovic 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 The Fab Four of Tennis can be done for the following purposes –
1. Strategic planning using facts provided in The Fab Four of Tennis case study
2. Improving business portfolio management of Tennis Djokovic
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 Tennis Djokovic
Strengths The Fab Four of Tennis | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tennis Djokovic in The Fab Four of Tennis Harvard Business Review case study are -
High switching costs
– The high switching costs that Tennis Djokovic 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.
Low bargaining power of suppliers
– Suppliers of Tennis Djokovic in the sector have low bargaining power. The Fab Four of Tennis has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tennis Djokovic to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Tennis Djokovic 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 Srinivas Krishnamoorthy, Jonathan Pinto 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.
Strong track record of project management
– Tennis Djokovic is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Leadership & Managing People industry
– The Fab Four of Tennis firm has clearly differentiated products in the market place. This has enabled Tennis Djokovic to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Tennis Djokovic to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Tennis Djokovic in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Tennis Djokovic is one of the leading recruiters in the industry. Managers in the The Fab Four of Tennis are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Tennis Djokovic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tennis Djokovic has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Successful track record of launching new products
– Tennis Djokovic has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tennis Djokovic 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.
Operational resilience
– The operational resilience strategy in the The Fab Four of Tennis 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.
Learning organization
- Tennis Djokovic 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 Tennis Djokovic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Fab Four of Tennis Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Tennis Djokovic has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Fab Four of Tennis 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 The Fab Four of Tennis | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Fab Four of Tennis are -
Capital Spending Reduction
– Even during the low interest decade, Tennis Djokovic 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.
Low market penetration in new markets
– Outside its home market of Tennis Djokovic, firm in the HBR case study The Fab Four of Tennis needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study The Fab Four of Tennis 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 Tennis Djokovic 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study The Fab Four of Tennis, 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
Tennis Djokovic 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 to strategic competitive environment developments
– As The Fab Four of Tennis HBR case study mentions - Tennis Djokovic 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Srinivas Krishnamoorthy, Jonathan Pinto suggests that, Tennis Djokovic is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Tennis Djokovic supply chain. Even after few cautionary changes mentioned in the HBR case study - The Fab Four of Tennis, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tennis Djokovic vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Tennis Djokovic products
– To increase the profitability and margins on the products, Tennis Djokovic needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Tennis Djokovic is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Tennis Djokovic needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tennis Djokovic to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Fab Four of Tennis, in the dynamic environment Tennis Djokovic has struggled to respond to the nimble upstart competition. Tennis Djokovic has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities The Fab Four of Tennis | 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 The Fab Four of Tennis are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Tennis Djokovic 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.
Better consumer reach
– The expansion of the 5G network will help Tennis Djokovic to increase its market reach. Tennis Djokovic 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tennis Djokovic can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Tennis Djokovic 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 The Fab Four of Tennis - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tennis Djokovic to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Tennis Djokovic can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Tennis Djokovic 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.
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. Tennis Djokovic can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tennis Djokovic 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, The Fab Four of Tennis, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tennis Djokovic can use these opportunities to build new business models that can help the communities that Tennis Djokovic operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Creating value in data economy
– The success of analytics program of Tennis Djokovic has opened avenues for new revenue streams for the organization in the industry. This can help Tennis Djokovic to build a more holistic ecosystem as suggested in the The Fab Four of Tennis case study. Tennis Djokovic can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Tennis Djokovic 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tennis Djokovic 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tennis Djokovic 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 Tennis Djokovic to hire the very best people irrespective of their geographical location.
Threats The Fab Four of Tennis External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Fab Four of Tennis are -
Stagnating economy with rate increase
– Tennis Djokovic 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tennis Djokovic with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Tennis Djokovic in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Tennis Djokovic needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tennis Djokovic 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 The Fab Four of Tennis .
Consumer confidence and its impact on Tennis Djokovic 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.
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.
Regulatory challenges
– Tennis Djokovic 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.
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. Tennis Djokovic 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tennis Djokovic 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.
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 Tennis Djokovic.
Increasing wage structure of Tennis Djokovic
– 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 Tennis Djokovic.
Environmental challenges
– Tennis Djokovic 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. Tennis Djokovic can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Weighted SWOT Analysis of The Fab Four of Tennis 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 The Fab Four of Tennis 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 The Fab Four of Tennis 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 The Fab Four of Tennis 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 The Fab Four of Tennis 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 Tennis Djokovic needs to make to build a sustainable competitive advantage.
