Brand Value, Convictions, Flexibility, and New Zealand Wine SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Brand Value, Convictions, Flexibility, and New Zealand Wine
How can small firms compete successfully in today's complex and dynamic markets without selling out? Seemingly only highly resourced companies can develop global brands that afford some degree of protection from turbulent market forces. But Palliser Estate Wines of New Zealand is one small firm that has managed to develop a strong brand. Adhering to a core set of values, it has ensured the effective use of limited resources and built a competitive advantage through considered action. By blending four different types of marketing practices, Palliser has created a unique cultural outlook that other small business owners can adopt.
Swot Analysis of "Brand Value, Convictions, Flexibility, and New Zealand Wine" written by Michael Beverland includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Palliser Zealand facing as an external strategic factors. Some of the topics covered in Brand Value, Convictions, Flexibility, and New Zealand Wine case study are - Strategic Management Strategies, Competitive strategy and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Brand Value, Convictions, Flexibility, and New Zealand Wine casestudy better are - – digital marketing is dominated by two big players Facebook and Google, technology disruption, there is backlash against globalization, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Brand Value, Convictions, Flexibility, and New Zealand Wine
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Brand Value, Convictions, Flexibility, and New Zealand Wine case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Palliser Zealand, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Palliser Zealand 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 Brand Value, Convictions, Flexibility, and New Zealand Wine can be done for the following purposes –
1. Strategic planning using facts provided in Brand Value, Convictions, Flexibility, and New Zealand Wine case study
2. Improving business portfolio management of Palliser Zealand
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Palliser Zealand
Strengths Brand Value, Convictions, Flexibility, and New Zealand Wine | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Palliser Zealand in Brand Value, Convictions, Flexibility, and New Zealand Wine Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Palliser Zealand in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Palliser Zealand is one of the leading recruiters in the industry. Managers in the Brand Value, Convictions, Flexibility, and New Zealand Wine are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Sales & Marketing field
– Palliser Zealand 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 Palliser Zealand in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Sales & Marketing industry
– Brand Value, Convictions, Flexibility, and New Zealand Wine firm has clearly differentiated products in the market place. This has enabled Palliser Zealand to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Palliser Zealand to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Brand Value, Convictions, Flexibility, and New Zealand Wine 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.
Strong track record of project management
– Palliser Zealand is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Palliser Zealand 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 Brand Value, Convictions, Flexibility, and New Zealand Wine - 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 Sales & Marketing segment
- digital transformation varies from industry to industry. For Palliser Zealand digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Palliser Zealand 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.
Organizational Resilience of Palliser Zealand
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Palliser Zealand does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Palliser Zealand in the sector have low bargaining power. Brand Value, Convictions, Flexibility, and New Zealand Wine has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Palliser Zealand to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Palliser Zealand has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Palliser Zealand 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.
Cross disciplinary teams
– Horizontal connected teams at the Palliser Zealand 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.
Weaknesses Brand Value, Convictions, Flexibility, and New Zealand Wine | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Brand Value, Convictions, Flexibility, and New Zealand Wine are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Brand Value, Convictions, Flexibility, and New Zealand Wine 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 Palliser Zealand has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Palliser Zealand 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. Palliser Zealand 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.
Need for greater diversity
– Palliser Zealand has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Brand Value, Convictions, Flexibility, and New Zealand Wine, is just above the industry average. Palliser Zealand 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 bargaining power of channel partners
– Because of the regulatory requirements, Michael Beverland suggests that, Palliser Zealand 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.
Skills based hiring
– The stress on hiring functional specialists at Palliser Zealand 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.
No frontier risks strategy
– After analyzing the HBR case study Brand Value, Convictions, Flexibility, and New Zealand Wine, it seems that company is thinking about the frontier risks that can impact Sales & Marketing 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.
Interest costs
– Compare to the competition, Palliser Zealand 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.
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 Palliser Zealand supply chain. Even after few cautionary changes mentioned in the HBR case study - Brand Value, Convictions, Flexibility, and New Zealand Wine, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Palliser Zealand vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Brand Value, Convictions, Flexibility, and New Zealand Wine, it seems that the employees of Palliser Zealand don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Lack of clear differentiation of Palliser Zealand products
– To increase the profitability and margins on the products, Palliser Zealand needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Brand Value, Convictions, Flexibility, and New Zealand Wine | 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 Brand Value, Convictions, Flexibility, and New Zealand Wine are -
Manufacturing automation
– Palliser Zealand can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Palliser Zealand 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, Brand Value, Convictions, Flexibility, and New Zealand Wine, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Palliser Zealand 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Palliser Zealand is facing challenges because of the dominance of functional experts in the organization. Brand Value, Convictions, Flexibility, and New Zealand Wine 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Palliser Zealand can use these opportunities to build new business models that can help the communities that Palliser Zealand operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Building a culture of innovation
– managers at Palliser Zealand 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 Sales & Marketing segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Palliser Zealand can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Palliser Zealand to increase its market reach. Palliser Zealand 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
– Palliser Zealand 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 Brand Value, Convictions, Flexibility, and New Zealand Wine - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Palliser Zealand to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Palliser Zealand can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Palliser Zealand can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Developing new processes and practices
– Palliser Zealand can develop new processes and procedures in Sales & Marketing 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
– Palliser Zealand 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.
Creating value in data economy
– The success of analytics program of Palliser Zealand has opened avenues for new revenue streams for the organization in the industry. This can help Palliser Zealand to build a more holistic ecosystem as suggested in the Brand Value, Convictions, Flexibility, and New Zealand Wine case study. Palliser Zealand can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Brand Value, Convictions, Flexibility, and New Zealand Wine External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Brand Value, Convictions, Flexibility, and New Zealand Wine are -
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.
Consumer confidence and its impact on Palliser Zealand 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.
High dependence on third party suppliers
– Palliser Zealand 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Brand Value, Convictions, Flexibility, and New Zealand Wine, Palliser Zealand may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Technology acceleration in Forth Industrial Revolution
– Palliser Zealand has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Palliser Zealand needs to keep up with the evolution of technology in the Sales & Marketing 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Palliser Zealand with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Palliser Zealand business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Palliser Zealand is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Palliser Zealand.
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. Palliser Zealand needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Palliser Zealand 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Palliser Zealand in the Sales & Marketing industry. The Sales & Marketing 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.
Increasing wage structure of Palliser Zealand
– 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 Palliser Zealand.
Weighted SWOT Analysis of Brand Value, Convictions, Flexibility, and New Zealand Wine 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 Brand Value, Convictions, Flexibility, and New Zealand Wine 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 Brand Value, Convictions, Flexibility, and New Zealand Wine 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 Brand Value, Convictions, Flexibility, and New Zealand Wine 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 Brand Value, Convictions, Flexibility, and New Zealand Wine 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 Palliser Zealand needs to make to build a sustainable competitive advantage.
