The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media

This article focuses on crisis management and leadership by executives, boards, and institutions and applies research on resilience, power, and sensemaking in the analysis of the ousting and subsequent return of a chief executive by the board of directors. Insights are shared on the transparency of information, the power of social media, the role of leaders in a crisis, and the ability of different voices to be heard and exert influence in our social media age. This case study provides a set of recommendations for leadership and crisis management in the contemporary business environment by showing how a crisis can be fueled by social media. Twitter is analyzed as a source of real-time news and information, which can have a significant impact on organizations and their strategies. Furthermore, implications for new executives are highlighted, with a focus on how their initial sensemaking process shapes the ability to respond to a crisis.

Authors :: Daniel A. Gruber, Ryan E. Smerek, Melissa Thomas-Hunt, Erika H. James

Topics :: Leadership & Managing People

Tags :: Crisis management, Human resource management, Leadership, Social platforms, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media" written by Daniel A. Gruber, Ryan E. Smerek, Melissa Thomas-Hunt, Erika H. James includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Crisis Sensemaking facing as an external strategic factors. Some of the topics covered in The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media case study are - Strategic Management Strategies, Crisis management, Human resource management, Leadership, Social platforms and Leadership & Managing People.

Some of the macro environment factors that can be used to understand the The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media casestudy better are - – increasing transportation and logistics costs, geopolitical disruptions, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, wage bills are increasing, etc

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Introduction to SWOT Analysis of The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Crisis Sensemaking, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Crisis Sensemaking 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media can be done for the following purposes –
1. Strategic planning using facts provided in The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media case study
2. Improving business portfolio management of Crisis Sensemaking
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 Crisis Sensemaking

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Strengths The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Crisis Sensemaking in The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media Harvard Business Review case study are -

Learning organization

- Crisis Sensemaking 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 Crisis Sensemaking is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Diverse revenue streams

– Crisis Sensemaking is present in almost all the verticals within the industry. This has provided firm in The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media 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.

Effective Research and Development (R&D)

– Crisis Sensemaking 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 The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Digital Transformation in Leadership & Managing People segment

- digital transformation varies from industry to industry. For Crisis Sensemaking digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Crisis Sensemaking has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

High brand equity

– Crisis Sensemaking has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Crisis Sensemaking to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Analytics focus

– Crisis Sensemaking 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 Daniel A. Gruber, Ryan E. Smerek, Melissa Thomas-Hunt, Erika H. James 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.

Ability to lead change in Leadership & Managing People field

– Crisis Sensemaking 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 Crisis Sensemaking in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Successful track record of launching new products

– Crisis Sensemaking has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Crisis Sensemaking 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.

Innovation driven organization

– Crisis Sensemaking is one of the most innovative firm in sector. Manager in The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Ability to recruit top talent

– Crisis Sensemaking is one of the leading recruiters in the industry. Managers in the The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Organizational Resilience of Crisis Sensemaking

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Crisis Sensemaking does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Operational resilience

– The operational resilience strategy in the The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media 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.

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Weaknesses The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media are -

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Crisis Sensemaking is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media, is just above the industry average. Crisis Sensemaking 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.

Products dominated business model

– Even though Crisis Sensemaking 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 - The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media should strive to include more intangible value offerings along with its core products and services.

Slow decision making process

– As mentioned earlier in the report, Crisis Sensemaking 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. Crisis Sensemaking 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.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media 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 Crisis Sensemaking has relatively successful track record of launching new products.

Lack of clear differentiation of Crisis Sensemaking products

– To increase the profitability and margins on the products, Crisis Sensemaking needs to provide more differentiated products than what it is currently offering in the marketplace.

Skills based hiring

– The stress on hiring functional specialists at Crisis Sensemaking 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.

Low market penetration in new markets

– Outside its home market of Crisis Sensemaking, firm in the HBR case study The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Capital Spending Reduction

– Even during the low interest decade, Crisis Sensemaking 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.

Interest costs

– Compare to the competition, Crisis Sensemaking 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Crisis Sensemaking 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.

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Opportunities The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media | 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 Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media are -

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. Crisis Sensemaking can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Leveraging digital technologies

– Crisis Sensemaking 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.

Building a culture of innovation

– managers at Crisis Sensemaking 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.

Manufacturing automation

– Crisis Sensemaking 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.

Developing new processes and practices

– Crisis Sensemaking 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.

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 Crisis Sensemaking 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Crisis Sensemaking can use these opportunities to build new business models that can help the communities that Crisis Sensemaking 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 Crisis Sensemaking has opened avenues for new revenue streams for the organization in the industry. This can help Crisis Sensemaking to build a more holistic ecosystem as suggested in the The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media case study. Crisis Sensemaking can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Better consumer reach

– The expansion of the 5G network will help Crisis Sensemaking to increase its market reach. Crisis Sensemaking 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.

Using analytics as competitive advantage

– Crisis Sensemaking 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 Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Crisis Sensemaking to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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 Crisis Sensemaking in the consumer business. Now Crisis Sensemaking can target international markets with far fewer capital restrictions requirements than the existing system.

Learning at scale

– Online learning technologies has now opened space for Crisis Sensemaking 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.

Buying journey improvements

– Crisis Sensemaking can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media 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.

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Threats The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media are -

Regulatory challenges

– Crisis Sensemaking 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Crisis Sensemaking 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.

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. Crisis Sensemaking 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.

Consumer confidence and its impact on Crisis Sensemaking 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.

Shortening product life cycle

– it is one of the major threat that Crisis Sensemaking is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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 Crisis Sensemaking business can come under increasing regulations regarding data privacy, data security, etc.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Crisis Sensemaking with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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 The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media, Crisis Sensemaking 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 .

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Crisis Sensemaking 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 Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media .

High dependence on third party suppliers

– Crisis Sensemaking 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.

Environmental challenges

– Crisis Sensemaking 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. Crisis Sensemaking can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.

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. Crisis Sensemaking needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of The Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media 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 Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media 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 Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media 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 Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media 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 Real-time Power of Twitter: Crisis Management and Leadership in an Age of Social Media 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 Crisis Sensemaking needs to make to build a sustainable competitive advantage.

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