Demarketing Soda in New York City SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Demarketing Soda in New York City
To maximize their effectiveness, color cases should be printed in color.In 2013, New York City Mayor Michael Bloomberg tried and failed to institute a ban on serving sizes of large sugary beverages. Obesity posed a large public health risk to the city. Mayor Bloomberg's proposed ban was one of many attempts to combat the rising threat of obesity. The case discusses the efficacy of the proposed ban on large soda serving sizes in the context of the other anti-obesity initiatives crafted by Bloomberg's administration.
Authors :: John A. Quelch, Margaret Rodriguez, Carin-Isabel Knoop, Christine Snively
Swot Analysis of "Demarketing Soda in New York City" written by John A. Quelch, Margaret Rodriguez, Carin-Isabel Knoop, Christine Snively includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ban Obesity facing as an external strategic factors. Some of the topics covered in Demarketing Soda in New York City case study are - Strategic Management Strategies, Ethics, Government, Health, Marketing, Strategy execution and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Demarketing Soda in New York City casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, there is backlash against globalization, increasing commodity prices, increasing government debt because of Covid-19 spendings,
wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Demarketing Soda in New York City
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Demarketing Soda in New York City case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ban Obesity, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ban Obesity 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 Demarketing Soda in New York City can be done for the following purposes –
1. Strategic planning using facts provided in Demarketing Soda in New York City case study
2. Improving business portfolio management of Ban Obesity
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 Ban Obesity
Strengths Demarketing Soda in New York City | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ban Obesity in Demarketing Soda in New York City Harvard Business Review case study are -
Learning organization
- Ban Obesity 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 Ban Obesity is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Demarketing Soda in New York City Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Ban Obesity has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Demarketing Soda in New York City Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Low bargaining power of suppliers
– Suppliers of Ban Obesity in the sector have low bargaining power. Demarketing Soda in New York City has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ban Obesity to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Demarketing Soda in New York City 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.
High brand equity
– Ban Obesity has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ban Obesity to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Ban Obesity
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ban Obesity does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Ban Obesity has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ban Obesity 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Demarketing Soda in New York City firm has clearly differentiated products in the market place. This has enabled Ban Obesity to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Ban Obesity to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Ban Obesity is one of the leading recruiters in the industry. Managers in the Demarketing Soda in New York City are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Ban Obesity digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ban Obesity 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.
Cross disciplinary teams
– Horizontal connected teams at the Ban Obesity 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.
Superior customer experience
– The customer experience strategy of Ban Obesity in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Demarketing Soda in New York City | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Demarketing Soda in New York City are -
High operating costs
– Compare to the competitors, firm in the HBR case study Demarketing Soda in New York City has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Ban Obesity 's lucrative customers.
Slow to strategic competitive environment developments
– As Demarketing Soda in New York City HBR case study mentions - Ban Obesity 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.
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 Ban Obesity supply chain. Even after few cautionary changes mentioned in the HBR case study - Demarketing Soda in New York City, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ban Obesity vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Demarketing Soda in New York City 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 Ban Obesity has relatively successful track record of launching new products.
High cash cycle compare to competitors
Ban Obesity has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Increasing silos among functional specialists
– The organizational structure of Ban Obesity is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Ban Obesity needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ban Obesity to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Ban Obesity 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, Ban Obesity 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ban Obesity is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Demarketing Soda in New York City can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, John A. Quelch, Margaret Rodriguez, Carin-Isabel Knoop, Christine Snively suggests that, Ban Obesity 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Demarketing Soda in New York City, in the dynamic environment Ban Obesity has struggled to respond to the nimble upstart competition. Ban Obesity has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Demarketing Soda in New York City | 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 Demarketing Soda in New York City are -
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 Ban Obesity 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ban Obesity 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 Ban Obesity to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ban Obesity 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.
Better consumer reach
– The expansion of the 5G network will help Ban Obesity to increase its market reach. Ban Obesity 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.
Buying journey improvements
– Ban Obesity can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Demarketing Soda in New York City 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.
Manufacturing automation
– Ban Obesity 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Ban Obesity can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ban Obesity 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, Demarketing Soda in New York City, 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
– Ban Obesity 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. Ban Obesity 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. Ban Obesity 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 Ban Obesity 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.
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. Ban Obesity 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 Ban Obesity has opened avenues for new revenue streams for the organization in the industry. This can help Ban Obesity to build a more holistic ecosystem as suggested in the Demarketing Soda in New York City case study. Ban Obesity can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Demarketing Soda in New York City External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Demarketing Soda in New York City 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 Ban Obesity.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ban Obesity with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Ban Obesity can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Ban Obesity business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Ban Obesity 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.
Shortening product life cycle
– it is one of the major threat that Ban Obesity is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Ban Obesity 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.
Stagnating economy with rate increase
– Ban Obesity 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.
Increasing wage structure of Ban Obesity
– 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 Ban Obesity.
Environmental challenges
– Ban Obesity 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. Ban Obesity can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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.
Technology acceleration in Forth Industrial Revolution
– Ban Obesity has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Ban Obesity 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.
Weighted SWOT Analysis of Demarketing Soda in New York City 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 Demarketing Soda in New York City 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 Demarketing Soda in New York City 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 Demarketing Soda in New York City 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 Demarketing Soda in New York City 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 Ban Obesity needs to make to build a sustainable competitive advantage.