Case Study Description of GoFit Foods: Selling the Sizzle
A new SoCal-based healthy burger company is trying to line up its initial base of customers and develop its overall sales strategy. The founders, with experience as leaders at Taco Bell, Pizza Hut, and Panda Express, must decide if they will abandon the pursuit of big restaurant companies in favor of emphasizing individual operators. They must also determine whether to embark on a potentially risky strategy to enter the supermarket channel much earlier than they originally planned.
Swot Analysis of "GoFit Foods: Selling the Sizzle" written by Jeremy Dann includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gofit Sizzle facing as an external strategic factors. Some of the topics covered in GoFit Foods: Selling the Sizzle case study are - Strategic Management Strategies, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the GoFit Foods: Selling the Sizzle casestudy better are - – geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of GoFit Foods: Selling the Sizzle
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GoFit Foods: Selling the Sizzle case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gofit Sizzle, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gofit Sizzle 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 GoFit Foods: Selling the Sizzle can be done for the following purposes –
1. Strategic planning using facts provided in GoFit Foods: Selling the Sizzle case study
2. Improving business portfolio management of Gofit Sizzle
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 Gofit Sizzle
Strengths GoFit Foods: Selling the Sizzle | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gofit Sizzle in GoFit Foods: Selling the Sizzle Harvard Business Review case study are -
Diverse revenue streams
– Gofit Sizzle is present in almost all the verticals within the industry. This has provided firm in GoFit Foods: Selling the Sizzle 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Gofit Sizzle digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gofit Sizzle 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.
Strong track record of project management
– Gofit Sizzle is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Gofit Sizzle 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
- Gofit Sizzle 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 Gofit Sizzle is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GoFit Foods: Selling the Sizzle Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Gofit Sizzle
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gofit Sizzle does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Gofit Sizzle 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 Jeremy Dann 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.
Effective Research and Development (R&D)
– Gofit Sizzle 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 GoFit Foods: Selling the Sizzle - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Gofit Sizzle has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gofit Sizzle 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.
Low bargaining power of suppliers
– Suppliers of Gofit Sizzle in the sector have low bargaining power. GoFit Foods: Selling the Sizzle has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gofit Sizzle to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Sales & Marketing industry
– GoFit Foods: Selling the Sizzle firm has clearly differentiated products in the market place. This has enabled Gofit Sizzle to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Gofit Sizzle to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Gofit Sizzle 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 GoFit Foods: Selling the Sizzle HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses GoFit Foods: Selling the Sizzle | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GoFit Foods: Selling the Sizzle are -
Aligning sales with marketing
– It come across in the case study GoFit Foods: Selling the Sizzle 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 GoFit Foods: Selling the Sizzle can leverage the sales team experience to cultivate customer relationships as Gofit Sizzle is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As GoFit Foods: Selling the Sizzle HBR case study mentions - Gofit Sizzle takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study GoFit Foods: Selling the Sizzle, is just above the industry average. Gofit Sizzle 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.
Skills based hiring
– The stress on hiring functional specialists at Gofit Sizzle 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.
Slow decision making process
– As mentioned earlier in the report, Gofit Sizzle 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. Gofit Sizzle 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 GoFit Foods: Selling the Sizzle 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 Gofit Sizzle has relatively successful track record of launching new products.
Products dominated business model
– Even though Gofit Sizzle 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 - GoFit Foods: Selling the Sizzle should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study GoFit Foods: Selling the Sizzle, in the dynamic environment Gofit Sizzle has struggled to respond to the nimble upstart competition. Gofit Sizzle has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Gofit Sizzle is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Gofit Sizzle needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gofit Sizzle to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Gofit Sizzle 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.
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 Gofit Sizzle supply chain. Even after few cautionary changes mentioned in the HBR case study - GoFit Foods: Selling the Sizzle, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gofit Sizzle vulnerable to further global disruptions in South East Asia.
Opportunities GoFit Foods: Selling the Sizzle | 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 GoFit Foods: Selling the Sizzle are -
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 Gofit Sizzle in the consumer business. Now Gofit Sizzle can target international markets with far fewer capital restrictions requirements than the existing system.
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. Gofit Sizzle can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Gofit Sizzle has opened avenues for new revenue streams for the organization in the industry. This can help Gofit Sizzle to build a more holistic ecosystem as suggested in the GoFit Foods: Selling the Sizzle case study. Gofit Sizzle can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Gofit Sizzle 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gofit Sizzle in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
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 Gofit Sizzle 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, Gofit Sizzle can use these opportunities to build new business models that can help the communities that Gofit Sizzle operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Loyalty marketing
– Gofit Sizzle 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.
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. Gofit Sizzle 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. Gofit Sizzle 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 Gofit Sizzle 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.
Using analytics as competitive advantage
– Gofit Sizzle 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 GoFit Foods: Selling the Sizzle - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gofit Sizzle to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gofit Sizzle 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.
Manufacturing automation
– Gofit Sizzle 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.
Threats GoFit Foods: Selling the Sizzle External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GoFit Foods: Selling the Sizzle are -
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 Gofit Sizzle.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study GoFit Foods: Selling the Sizzle, Gofit Sizzle 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
– Gofit Sizzle has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Gofit Sizzle 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.
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.
Shortening product life cycle
– it is one of the major threat that Gofit Sizzle is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Gofit Sizzle 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.
Increasing wage structure of Gofit Sizzle
– 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 Gofit Sizzle.
Consumer confidence and its impact on Gofit Sizzle 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Gofit Sizzle 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.
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. Gofit Sizzle 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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Gofit Sizzle in the Sales & Marketing sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gofit Sizzle 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 GoFit Foods: Selling the Sizzle .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gofit Sizzle with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of GoFit Foods: Selling the Sizzle 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 GoFit Foods: Selling the Sizzle 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 GoFit Foods: Selling the Sizzle 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 GoFit Foods: Selling the Sizzle 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 GoFit Foods: Selling the Sizzle 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 Gofit Sizzle needs to make to build a sustainable competitive advantage.