Strategic Analysis of Hubspot Inc.

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An example of a strategic analysis of a company: using Hubspot Inc. this presentation reviews the company's external and internal environments; employs the resource based view of the firm (RBV) and analyses competitive advantage and potential sustainability and strategic leadership of the company by innovators Halligan and Shah.

Logo and images of founders from Hubspot website, with full rights to images owned by them, http://www.hubspot.com/internet-marketing-company/press-room.

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  • Initial sustained competitive advantage. First to market advantage – not defendable advantage.
  • According to Bennigson & Leonard (2013), one of the main purposes of the board is to create value for the company. The management has done this through opportunity-generating capabilities in lead generation plus strategic alliances with companies such as Salesforce.com and PR Newswire and strategic purchases of new technology and new talent. They have also worked to develop their advisory board with a wealth of marketing, technology and finance experience.
  • In 2011 Hubspot were named Deloitte 8th fastest growing technology company with 27,746% revenue growth for 2006-2011 (Deloitte, 2011), and Inc 500’s 2nd fastest growing software company. In 2012 they were 17th on the Deloitte list.
  • CoNeed to expand into new markets:International English-speaking Introduce Multilingual tools and multilingual version of the site.Consider developing a bespoke enterprise-level version to target a new market
  • KurtLewin.- freeze – unfreeze – Use horizons model?
  • Strategic Analysis of Hubspot Inc.

    1. 1. Strategic Analysis of Hubspot Inc. Marie Howell
    2. 2. Agenda  Introduction to Hubspot Inc.  External Environment  Internal Environment  Strategic Leadership  Resource Based View of Hubspot  Analysis & Strategic Issues  The Future for Hubspot
    3. 3. Who is Hubspot Inc.?  Founded by 2 MIT graduates in 2007  Strategic Capability via resources & core competencies (Resource Based View):  Skills  Leadership  Experience  Contacts  Blue Ocean Strategy: Inbound Marketing Company  Specific Niche Market: VSB - SME  $100 million in investment 2007-2012  Acquisition strategy  Looking to IPO potentially in 2013 Hamel & Pralahad, 1985; Kim & Mauborgne, 2005
    4. 4. The Hubspot Product  User friendly CMS on Hubspot’s cloud hosting  Built-in templates  Responsive web design  Basic SEO  Landing page optimisation A/B testing  Content Marketing  SMM  Blogging  Granular Analytics  Lead Generation & Lead Management  CRM & Marketing automation
    5. 5. Environment Analyses
    6. 6. Internal Environment
    7. 7. VRIO / Value Chain Analysis Barney (2010), Porter (1979)
    8. 8. Building Blocks for Competitive Advantage Porter & Siggelow, 2008
    9. 9. Strategic Leadership Approach  Strong Management team that creates value for the company:  Halligan CEO: Shah, CTO  VC (Tech) funder Larry Bohn; Software CEO Michael Simon; CFO David Stack  Advisory Board:  Marketing  Technology  Finance / Funding  Leveraging core competencies to create competitive advantage (RBV)  New Markets: UK & Europe  Acquiring new resources / talent via:  Purchase (Chime, PrepWork)  Aggressive HR strategy for knowledge workers  Employee retention strategy  Strategic alliances (Salesforce.com; PRNewswire.com) Hamel & Pralahad, 1985; Drucker, 1990; Bennigson & Leonard, 2013
    10. 10. Strategic Leadership Summary  Shape decisions  Deliver high value – company grown over 27,000% 2006-2011 (Deloitte, 2011)  Inspiring & managing staff  Engaging with & retaining quality advisors Lynch, 2012
    11. 11. Resource Based View of Hubspot It could be argued that Hubspot has worked to create ‘distinctiveness of capabilities’ 1. Halligan & Shah worked to develop their skillsets  Technical  Business (MBA & work)  Investment 2. Created proposition based on resources & skills (RBV) 3. Leveraged those skills to solicit VC funding 4. Identified weaknesses & addressed these 5. Acquired additional skills through purchase 6. Brought on board an advisory team to ‘round out’ the company Johnson et al, 2009
    12. 12. Hubspot: Resource Based Model Strategy: Lead generation via content marketing plus continuing, excellent CRM; Acquisition of talent & technology; continuing rounds of VC funding; Regularly updated, affordable, scalable software. New Markets. Effective management Talented CEO / CTO Brought Additional Experience on board Advisory Board Resources: VC funding - $100 million Capabilities: Talent; IP Operations: Effective lead generation & sales funnel Products: Targeted product to VSB / SME’s Sanchez, 2003 Product Markets: VSB; SME; Agencies Competitors: CMS, CRM: Ez, Pardot, Salesforce ResourceMarkets: Talent Data & Revenue: Lead Generation Competition $100 million
    13. 13. Analysis & Strategic Issues  Replicable, but with a first-to-market advantage  Competitive advantage: unsustainable?  Cost of substitution is high, but is inevitable if the clients go from VSB to MLE  Low cost lead strategy: better than salesforce.com  New Market strategy: UK & EU. However, managing growth, maintaining quality could be an issue.  Multilingual?
    14. 14. Future for Hubspot?  Social: addressed trends in 2005/7 – do they now need a significant evolution?  Organisational:  New Markets: Dubspot (Hubspot, Dublin) office with same culture, recruiting local personnel and targeting the local market  Advisory Board geared up for development of company  Cognitive: continue recruitment, IP & talent acquisition strategies  IPO
    15. 15. Summary  Blue Ocean strategy  Company has:  core competencies  first-to-market competitive advantage:  Strategic leadership;  Excellent contacts;  Knowledge & experience  Future: New Market strategy  Leadership is focused on exit strategy: IPO
    16. 16. References  Barney, J. B., & Hesterly, W., 2010. Strategic Management and Competitive Advantage. Pearson: New Jersey.  Drucker, P., 2002. They’re not employees, they’re people. Harvard Business Review. 80 (2), 70-77  Mintzberg, H., 1994. The fall and rise of strategic planning. Harvard Business Review 72 (1), 107-114. Business Source Complete, EBSCOhost [Accessed May 10, 2013].  Hamel, G., & Pralahad, C. K., 2005. Best of HBR-- Strategic intent. Market Leader, (30), 64-65.  Johnson, G., Whittington, R. & Scholes, K., 2009. Fundamentals of strategy. Pearson: Harlow.  Kim, W., & Mauborgne, R. 2005. Blue ocean strategy : how to create uncontested market space and make the competition irrelevant. Boston, Mass. : Harvard Business School, 2005.  Lynch, R. 2010. Strategic Management. 6th ed. Pearson: Harlow.  Porter, M., 1979. How competitive forces shape strategy. Harvard Business Review 57 (2), 137–145.  Porter, M., 2001. Strategy and the Internet. Harvard Business Review, 79(3), 62-78.
    17. 17. Appendix

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