Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market
Launched in 1998, Russian Standard vodka quickly became the highest selling premium vodka in Russia, ahead of Stoli, Smirnoff, and Absolut. Russian StandardA?s success can be attributed to the high quality of the vodka itself, its innovative and distinctive bottle, to its strong presence in bars, and to a brand identity that is proud to leverage its Russian heritage while promising world-class standards of quality. The company, which also owns a successful bank, Russian Standard bank, is considering whether it should launch Russian Standard in the biggest premium vodka market in the world - the US - and whether it should adapt its marketing mix or stick with the strategy that has been so successful in Russia.
Swot Analysis of "Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market" written by Pierre Chandon, Vadim Grigorian includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Vodka Russian facing as an external strategic factors. Some of the topics covered in Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market case study are - Strategic Management Strategies, Entrepreneurship, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market casestudy better are - – challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, increasing government debt because of Covid-19 spendings,
there is increasing trade war between United States & China, increasing commodity prices, etc
Introduction to SWOT Analysis of Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vodka Russian, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vodka Russian 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 Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market can be done for the following purposes –
1. Strategic planning using facts provided in Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market case study
2. Improving business portfolio management of Vodka Russian
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 Vodka Russian
Strengths Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vodka Russian in Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market Harvard Business Review case study are -
Successful track record of launching new products
– Vodka Russian has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Vodka Russian 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.
Ability to lead change in Sales & Marketing field
– Vodka Russian 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 Vodka Russian in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Vodka Russian 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 Vodka Russian is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Vodka Russian is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Vodka Russian has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Vodka Russian to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market 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.
Training and development
– Vodka Russian has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Vodka Russian digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Vodka Russian 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market firm has clearly differentiated products in the market place. This has enabled Vodka Russian to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Vodka Russian to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Vodka Russian in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Vodka Russian is one of the leading recruiters in the industry. Managers in the Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Vodka Russian 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 Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market are -
Aligning sales with marketing
– It come across in the case study Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market 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 Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market can leverage the sales team experience to cultivate customer relationships as Vodka Russian is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market, is just above the industry average. Vodka Russian needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High 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 Vodka Russian supply chain. Even after few cautionary changes mentioned in the HBR case study - Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Vodka Russian 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 Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market 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 Vodka Russian has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Vodka Russian 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.
Need for greater diversity
– Vodka Russian 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.
Slow to strategic competitive environment developments
– As Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market HBR case study mentions - Vodka Russian 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.
Increasing silos among functional specialists
– The organizational structure of Vodka Russian is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Vodka Russian needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Vodka Russian to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Vodka Russian 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market 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 Vodka Russian 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Vodka Russian is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market | 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 Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market are -
Creating value in data economy
– The success of analytics program of Vodka Russian has opened avenues for new revenue streams for the organization in the industry. This can help Vodka Russian to build a more holistic ecosystem as suggested in the Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market case study. Vodka Russian can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Vodka Russian 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 Vodka Russian to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Vodka Russian can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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. Vodka Russian can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Vodka Russian 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.
Developing new processes and practices
– Vodka Russian 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Vodka Russian is facing challenges because of the dominance of functional experts in the organization. Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market 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.
Using analytics as competitive advantage
– Vodka Russian 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 Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Vodka Russian to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Vodka Russian 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.
Buying journey improvements
– Vodka Russian can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market 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.
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. Vodka Russian 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. Vodka Russian 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Vodka Russian 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, Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Vodka Russian to increase its market reach. Vodka Russian 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 Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market are -
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.
Environmental challenges
– Vodka Russian 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. Vodka Russian can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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. Vodka Russian needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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
– Vodka Russian has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Vodka Russian needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Vodka Russian with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Vodka Russian 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.
Consumer confidence and its impact on Vodka Russian 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market, Vodka Russian 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 .
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 Vodka Russian business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Vodka Russian is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Vodka Russian 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 Vodka Russian
– 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 Vodka Russian.
Weighted SWOT Analysis of Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market 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 Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market 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 Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market 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 Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market 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 Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market 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 Vodka Russian needs to make to build a sustainable competitive advantage.
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