MontGras: Export Strategy for a Chilean Winery SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of MontGras: Export Strategy for a Chilean Winery
To maximize their effectiveness, color cases should be printed in color.MontGras, a medium-sized Chilean winery, has to formulate an export strategy. It has to decide whether to emphasize the U.S. or U.K. markets, which also offer different positioning and pricing proposals. It has twice failed to penetrate the U.S. market because distributor relationships fell through and is deciding between two new potential partners. In the United Kingdom, it is offered participation in a supermarket promotion that will boost volumes, but at the expense of price maintenance. Includes color exhibits.
Swot Analysis of "MontGras: Export Strategy for a Chilean Winery" written by David J. Arnold, Howard H. Stevenson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Chilean Winery facing as an external strategic factors. Some of the topics covered in MontGras: Export Strategy for a Chilean Winery case study are - Strategic Management Strategies, Globalization, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the MontGras: Export Strategy for a Chilean Winery casestudy better are - – supply chains are disrupted by pandemic , increasing energy prices, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion,
there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of MontGras: Export Strategy for a Chilean Winery
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MontGras: Export Strategy for a Chilean Winery case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chilean Winery, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chilean Winery 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 MontGras: Export Strategy for a Chilean Winery can be done for the following purposes –
1. Strategic planning using facts provided in MontGras: Export Strategy for a Chilean Winery case study
2. Improving business portfolio management of Chilean Winery
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 Chilean Winery
Strengths MontGras: Export Strategy for a Chilean Winery | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chilean Winery in MontGras: Export Strategy for a Chilean Winery Harvard Business Review case study are -
Organizational Resilience of Chilean Winery
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Chilean Winery does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Chilean Winery is one of the leading recruiters in the industry. Managers in the MontGras: Export Strategy for a Chilean Winery are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Chilean Winery is present in almost all the verticals within the industry. This has provided firm in MontGras: Export Strategy for a Chilean Winery 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.
Highly skilled collaborators
– Chilean Winery has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in MontGras: Export Strategy for a Chilean Winery HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Chilean Winery 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.
Learning organization
- Chilean Winery 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 Chilean Winery is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in MontGras: Export Strategy for a Chilean Winery Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Chilean Winery 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 David J. Arnold, Howard H. Stevenson 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.
High brand equity
– Chilean Winery has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Chilean Winery to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Chilean Winery is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Chilean Winery is one of the most innovative firm in sector. Manager in MontGras: Export Strategy for a Chilean Winery Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Chilean Winery in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Chilean Winery in the sector have low bargaining power. MontGras: Export Strategy for a Chilean Winery has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chilean Winery to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses MontGras: Export Strategy for a Chilean Winery | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MontGras: Export Strategy for a Chilean Winery are -
Aligning sales with marketing
– It come across in the case study MontGras: Export Strategy for a Chilean Winery that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case MontGras: Export Strategy for a Chilean Winery can leverage the sales team experience to cultivate customer relationships as Chilean Winery is planning to shift buying processes online.
Lack of clear differentiation of Chilean Winery products
– To increase the profitability and margins on the products, Chilean Winery needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Chilean Winery 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.
Skills based hiring
– The stress on hiring functional specialists at Chilean Winery 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 Chilean Winery, firm in the HBR case study MontGras: Export Strategy for a Chilean Winery needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Chilean Winery 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Chilean Winery 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.
Increasing silos among functional specialists
– The organizational structure of Chilean Winery is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Chilean Winery needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Chilean Winery to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Chilean Winery 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. Chilean Winery 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 bargaining power of channel partners
– Because of the regulatory requirements, David J. Arnold, Howard H. Stevenson suggests that, Chilean Winery 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study MontGras: Export Strategy for a Chilean Winery, is just above the industry average. Chilean Winery 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.
Opportunities MontGras: Export Strategy for a Chilean Winery | 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 MontGras: Export Strategy for a Chilean Winery are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Chilean Winery 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 Chilean Winery to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Chilean Winery can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. MontGras: Export Strategy for a Chilean Winery 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.
Developing new processes and practices
– Chilean Winery 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.
Using analytics as competitive advantage
– Chilean Winery 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 MontGras: Export Strategy for a Chilean Winery - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Chilean Winery to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Chilean Winery 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, Chilean Winery can use these opportunities to build new business models that can help the communities that Chilean Winery operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Better consumer reach
– The expansion of the 5G network will help Chilean Winery to increase its market reach. Chilean Winery 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.
Learning at scale
– Online learning technologies has now opened space for Chilean Winery 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Chilean Winery 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.
Creating value in data economy
– The success of analytics program of Chilean Winery has opened avenues for new revenue streams for the organization in the industry. This can help Chilean Winery to build a more holistic ecosystem as suggested in the MontGras: Export Strategy for a Chilean Winery case study. Chilean Winery can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Chilean Winery 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. Chilean Winery 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.
Building a culture of innovation
– managers at Chilean Winery 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Chilean Winery is facing challenges because of the dominance of functional experts in the organization. MontGras: Export Strategy for a Chilean Winery 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.
Threats MontGras: Export Strategy for a Chilean Winery External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study MontGras: Export Strategy for a Chilean Winery are -
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 Chilean Winery business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study MontGras: Export Strategy for a Chilean Winery, Chilean Winery 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 .
Regulatory challenges
– Chilean Winery 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 Sales & Marketing industry regulations.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Chilean Winery can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Chilean Winery 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.
Increasing wage structure of Chilean Winery
– 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 Chilean Winery.
Shortening product life cycle
– it is one of the major threat that Chilean Winery is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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 Chilean Winery.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Chilean Winery 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 MontGras: Export Strategy for a Chilean Winery .
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. Chilean Winery needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Chilean Winery has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Chilean Winery 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.
Environmental challenges
– Chilean Winery 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. Chilean Winery can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Weighted SWOT Analysis of MontGras: Export Strategy for a Chilean Winery 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 MontGras: Export Strategy for a Chilean Winery 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 MontGras: Export Strategy for a Chilean Winery 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 MontGras: Export Strategy for a Chilean Winery 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 MontGras: Export Strategy for a Chilean Winery 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 Chilean Winery needs to make to build a sustainable competitive advantage.
