Should Kellogg's Launch Gluten-Free Products in India? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Should Kellogg's Launch Gluten-Free Products in India?
Kellogg's is exploring the possibility of launching gluten-free Corn Flakes in India. The company must examine the gluten-free market in India and explore strategies for entering this market. Kellogg's must assess its competitors in India's growing breakfast cereal market, where a growing economy and increasing health awareness is pushing Indian consumers to look for healthier options. Questions remain whether Kellogg's should enter the promising gluten-free segment to take advantage of this potential opportunity in India, consumers' evolving preferences and the current industry trends.
Swot Analysis of "Should Kellogg's Launch Gluten-Free Products in India?" written by Sandeep Puri, Mayank Rawat, Arjit Rawal, Akshay Nangia includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gluten Kellogg's facing as an external strategic factors. Some of the topics covered in Should Kellogg's Launch Gluten-Free Products in India? case study are - Strategic Management Strategies, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Should Kellogg's Launch Gluten-Free Products in India? casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, increasing energy prices, increasing transportation and logistics costs, there is backlash against globalization,
increasing household debt because of falling income levels, geopolitical disruptions, etc
Introduction to SWOT Analysis of Should Kellogg's Launch Gluten-Free Products in India?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Should Kellogg's Launch Gluten-Free Products in India? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gluten Kellogg's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gluten Kellogg's 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 Should Kellogg's Launch Gluten-Free Products in India? can be done for the following purposes –
1. Strategic planning using facts provided in Should Kellogg's Launch Gluten-Free Products in India? case study
2. Improving business portfolio management of Gluten Kellogg's
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 Gluten Kellogg's
Strengths Should Kellogg's Launch Gluten-Free Products in India? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gluten Kellogg's in Should Kellogg's Launch Gluten-Free Products in India? Harvard Business Review case study are -
Ability to recruit top talent
– Gluten Kellogg's is one of the leading recruiters in the industry. Managers in the Should Kellogg's Launch Gluten-Free Products in India? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Gluten Kellogg's is one of the most innovative firm in sector. Manager in Should Kellogg's Launch Gluten-Free Products in India? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Gluten Kellogg's is present in almost all the verticals within the industry. This has provided firm in Should Kellogg's Launch Gluten-Free Products in India? 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.
Strong track record of project management
– Gluten Kellogg's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Gluten Kellogg's 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 Gluten Kellogg's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Should Kellogg's Launch Gluten-Free Products in India? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Gluten Kellogg's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gluten Kellogg's 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.
High switching costs
– The high switching costs that Gluten Kellogg's has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Gluten Kellogg's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gluten Kellogg's 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.
Analytics focus
– Gluten Kellogg's 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 Sandeep Puri, Mayank Rawat, Arjit Rawal, Akshay Nangia 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.
Organizational Resilience of Gluten Kellogg's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gluten Kellogg's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Sales & Marketing field
– Gluten Kellogg's 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 Gluten Kellogg's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Gluten Kellogg's 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 Should Kellogg's Launch Gluten-Free Products in India? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Should Kellogg's Launch Gluten-Free Products in India? are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Should Kellogg's Launch Gluten-Free Products in India?, in the dynamic environment Gluten Kellogg's has struggled to respond to the nimble upstart competition. Gluten Kellogg's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Should Kellogg's Launch Gluten-Free Products in India?, it seems that the employees of Gluten Kellogg's 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.
Slow decision making process
– As mentioned earlier in the report, Gluten Kellogg's 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. Gluten Kellogg's 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 operating costs
– Compare to the competitors, firm in the HBR case study Should Kellogg's Launch Gluten-Free Products in India? 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 Gluten Kellogg's 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Should Kellogg's Launch Gluten-Free Products in India? 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 Should Kellogg's Launch Gluten-Free Products in India? can leverage the sales team experience to cultivate customer relationships as Gluten Kellogg's is planning to shift buying processes online.
Need for greater diversity
– Gluten Kellogg's 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Should Kellogg's Launch Gluten-Free Products in India? 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 Gluten Kellogg's has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Gluten Kellogg's 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.
Capital Spending Reduction
– Even during the low interest decade, Gluten Kellogg's 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.
No frontier risks strategy
– After analyzing the HBR case study Should Kellogg's Launch Gluten-Free Products in India?, 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.
Products dominated business model
– Even though Gluten Kellogg's 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 - Should Kellogg's Launch Gluten-Free Products in India? should strive to include more intangible value offerings along with its core products and services.
Opportunities Should Kellogg's Launch Gluten-Free Products in India? | 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 Should Kellogg's Launch Gluten-Free Products in India? are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Gluten Kellogg's 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.
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. Gluten Kellogg's 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. Gluten Kellogg's 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 Gluten Kellogg's 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
– Gluten Kellogg's 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 Should Kellogg's Launch Gluten-Free Products in India? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gluten Kellogg's 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 Gluten Kellogg's 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.
Learning at scale
– Online learning technologies has now opened space for Gluten Kellogg's 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.
Manufacturing automation
– Gluten Kellogg's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gluten Kellogg's 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.
Creating value in data economy
– The success of analytics program of Gluten Kellogg's has opened avenues for new revenue streams for the organization in the industry. This can help Gluten Kellogg's to build a more holistic ecosystem as suggested in the Should Kellogg's Launch Gluten-Free Products in India? case study. Gluten Kellogg's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gluten Kellogg's is facing challenges because of the dominance of functional experts in the organization. Should Kellogg's Launch Gluten-Free Products in India? 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.
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. Gluten Kellogg's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Gluten Kellogg's 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.
Better consumer reach
– The expansion of the 5G network will help Gluten Kellogg's to increase its market reach. Gluten Kellogg's 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.
Threats Should Kellogg's Launch Gluten-Free Products in India? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Should Kellogg's Launch Gluten-Free Products in India? are -
Consumer confidence and its impact on Gluten Kellogg's 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.
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 Gluten Kellogg's business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Gluten Kellogg's 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gluten Kellogg's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Gluten Kellogg's 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gluten Kellogg's 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 Should Kellogg's Launch Gluten-Free Products in India? .
Stagnating economy with rate increase
– Gluten Kellogg's 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.
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 Gluten Kellogg's.
Increasing wage structure of Gluten Kellogg's
– 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 Gluten Kellogg's.
Technology acceleration in Forth Industrial Revolution
– Gluten Kellogg's has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Gluten Kellogg's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Should Kellogg's Launch Gluten-Free Products in India?, Gluten Kellogg's 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 .
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. Gluten Kellogg's needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Should Kellogg's Launch Gluten-Free Products in India? 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 Should Kellogg's Launch Gluten-Free Products in India? 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 Should Kellogg's Launch Gluten-Free Products in India? 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 Should Kellogg's Launch Gluten-Free Products in India? 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 Should Kellogg's Launch Gluten-Free Products in India? 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 Gluten Kellogg's needs to make to build a sustainable competitive advantage.
