SWOT analysis is a critical tool used to generate insights on the strengths of an organization, its weaknesses, opportunities, and threats. This is important as it defines the strategic advantages or the brand that is important in the pursuit of opportunities available for an organization. These strengths help the brand overcome its weaknesses and threats.
Hubspot is an American-based developer and marketer of software products for inbound sales, marketing, and customer service. The brand equips users with tools for social media marketing, customer relationship management, web analytics, content management, lead generation, live chat, search engine optimization, and customer support among others.
In this article, we cover the SWOT analysis of Hubspot. First, we include some highlights of the company and then go into a detailed analysis of SWOT which includes strengths, weaknesses, opportunities, and threats. So let get started!
Hubspot – At a Glance
| Name | Hubspot |
| Website | hubspot.com |
| Founders | Dharmesh Shah, Brian Halligan |
| Chief Executive Officer (C.E.O.) | Yamini Rangan |
| Headquarters | Cambridge, Massachusetts, United States |
| Type of Corporation | Public |
| Year Founded | June 2006, Cambridge, Massachusetts, United States |
| Revenues (2019) | US$883.026 Million (Fiscal Year Ended 31 December 2020 |
| Key Products/Services | Software |
| Key Competitors | TestComplete, Perfecto, Applause.Kobiton, Ranorex Studio, LambdaTest, pCloudy |
Strengths of Hubspot
Strong product
Hubspot product has been described as being unique as it offers its customers an all-in-one service, it’s easy to use and robust. Hubspot’s tools are geared towards enabling efficiency and effectiveness in customer relationship management, content management, social media marketing, web analytics, lead generation, search engine optimization, customer support, and live chat. These aspects of the software are critical in an edge where everyone is moving towards e-commerce and businesses are all seeking to have an online presence.
Hubspot’s products are even much more in demand post COVID when there has been a paradigm shift in workspaces to virtual working. A product that offers a solution to a pertinent problem among its users is assured of high demand which in turn reduces marketing costs.
Strategic partnerships and acquisitions
Over the years of its existence, Hubspot has had several strategic acquisitions like Oneforty, and Kemvi which apply machine learning and artificial intelligence to increase sales teams’ efficiencies and targeting. Strategic acquisitions and partnerships are strengths in a brand’s expansion strategy and as well in achieving better service/product delivery for higher customer satisfaction.
Market dominance
Hubspot is a huge brand in the sales and marketing automation world. It controls close to a third of the automation market, precisely 29.55%. Its next competitor, Adobe experience cloud controls11.79%. This gives the brand more leverage for a better bargaining position with suppliers, distributors, and even customers. It ensures more brand awareness, access to superior advertising options at competitive rates, and access to better technology and research and development.
Weaknesses of Hubspot
Costly in the long run
While Hubspot offers its CRM for free with additional other free tools, in the long run, Hubspot’s offer may be costly. The product has very limited features in its free version that only allow for basic operation. As the business outgrows the basic features and free CRM with limited features, the cost for using Hubspot steeply rises.
To start with, the starter package is $50 that works for 1000 contacts beyond which a business will have to subscribe to the professional package for a further 1000 contacts for $800 per month. The enterprise package offers 10,000 contacts for $3,200. another additional cost includes paying for any technical support, which would have come in handy if it were offered as an after-sales service; free of charge.
Non flexible contracts
Once one has signed a contract with Hubspot, whatever happens, they cannot change the terms and conditions of the contract. There are no cancellations and no refunds in the eventuality one doesn’t use a given tool or do not reach the huge contact list they had envisioned. This may adversely affect businesses that are in their initial stages of starting up and their processes may not be well aligned with those of Hubspot.
So if a business signs up with Hubspot and discovers they are not the best fit, they have no option but to continue paying until the contract period is over.
Not so easy to use as an all-in-one
Users of Hubspot can enjoy the full benefits of the platform only when they are able to run everything through the Hubspot platform; including building the client’s website in Hubspot’s CMS. In the event the client has already built their website and would want to run all other features except the website, then Hubspot becomes challenging to use.
Many businesses often run on numerous platforms depending on their desired features for each specification. This is not easy to do on Hubspot. additionally, the product lacks split testing. Lastly, it is difficult to modify templates.
Opportunities of Hubspot
More growth opportunities in the market
With the ubiquitous nature of the internet, mobile, and the web, there has been a major shift of business, social, and life in general to the online space. Much more with the advent of COVID that called for minimal physical interactions, workspaces have shifted to virtual working spaces. Analysts predict continued growth in the use of virtual, the internet, mobile, and the web in general. Given the growth anticipated in this sphere, virtual enhancing tools for individuals, corporates, and governments use will likewise witness an increase in demand. Hubspot needs to continuously position itself as an all-in-one solution provider for e-commerce among other needs in the virtual world so as to reap the most of the opportunities arising from the virtual spaces.
Acquisitions and partnerships
Hubspot has opportunities for expansion and growth in its service delivery through partnerships, mergers and acquisition. This strategy builds synergies so that the brand betters its product/service, gets a wider outreach of the market, and gets more resources for innovation and development.
Threats of Hubspot
Stiff competition
Hubspot faces great competition from numerous players in the industry; both new entrants and already established brands. This means more competition for the limited market share and a threat to HubSpot’s market share.
Hubspot needs to continuously innovate in accordance with customer’s needs to ensure the company enhances its acquisition and retention strategy for its customers. This will reduce costs of marketing and expansion for the brand while at the same time have the company enjoy the network effects of its customer base.
Revolutionary technologies
The rate of technological evolution keeps on increasing day after day. Technologies that were great at one point more often than not end up being rendered redundant. Hubspot has heavily invested in its technologies that are executing Hubspot’s mandate excellently.
The brand however is remotely faced with the threat of another technology arising that will render Hubspot’s technology obsolete. Hubspot needs to be continuously in the know of the changing trends and needs of customers. Remaining relevant to customer’s needs is the key to keeping at bay the threat of becoming obsolete.
Conclusion
Hubspot is a market leader and therefore has a greater competitive advantage over others in the industry. Because of its leadership position. The brand needs to strengthen its leadership position by ensuring more product quality, more customer acquisition and retention, and more innovation among others.
