ICA: Changing the Supermarket Business, One Screen at a Time SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of ICA: Changing the Supermarket Business, One Screen at a Time
The ICA case describes digital signage as an innovation that the ICA grocery chain might introduce throughout its Nordic region stores. It details the research methodology used to examine the effectiveness of this innovation, then poses a dilemma by noting that the three research studies present conflicting results.
Swot Analysis of "ICA: Changing the Supermarket Business, One Screen at a Time" written by Anne Roggeveen, Dhruv Grewal includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ica Signage facing as an external strategic factors. Some of the topics covered in ICA: Changing the Supermarket Business, One Screen at a Time case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the ICA: Changing the Supermarket Business, One Screen at a Time casestudy better are - – increasing household debt because of falling income levels, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing commodity prices, wage bills are increasing, etc
Introduction to SWOT Analysis of ICA: Changing the Supermarket Business, One Screen at a Time
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ICA: Changing the Supermarket Business, One Screen at a Time case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ica Signage, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ica Signage 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 ICA: Changing the Supermarket Business, One Screen at a Time can be done for the following purposes –
1. Strategic planning using facts provided in ICA: Changing the Supermarket Business, One Screen at a Time case study
2. Improving business portfolio management of Ica Signage
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 Ica Signage
Strengths ICA: Changing the Supermarket Business, One Screen at a Time | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ica Signage in ICA: Changing the Supermarket Business, One Screen at a Time Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Ica Signage in the sector have low bargaining power. ICA: Changing the Supermarket Business, One Screen at a Time has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ica Signage to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Ica Signage 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 ICA: Changing the Supermarket Business, One Screen at a Time - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Ica Signage 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 Ica Signage is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in ICA: Changing the Supermarket Business, One Screen at a Time Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Sales & Marketing industry
– ICA: Changing the Supermarket Business, One Screen at a Time firm has clearly differentiated products in the market place. This has enabled Ica Signage to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Ica Signage to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Ica Signage is one of the leading recruiters in the industry. Managers in the ICA: Changing the Supermarket Business, One Screen at a Time are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Ica Signage has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ica Signage to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Sales & Marketing field
– Ica Signage 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 Ica Signage in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the ICA: Changing the Supermarket Business, One Screen at a Time 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.
Organizational Resilience of Ica Signage
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ica Signage does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Ica Signage 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.
Training and development
– Ica Signage has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in ICA: Changing the Supermarket Business, One Screen at a Time 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.
Analytics focus
– Ica Signage 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 Anne Roggeveen, Dhruv Grewal 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.
Weaknesses ICA: Changing the Supermarket Business, One Screen at a Time | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ICA: Changing the Supermarket Business, One Screen at a Time are -
Interest costs
– Compare to the competition, Ica Signage has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ica Signage is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study ICA: Changing the Supermarket Business, One Screen at a Time can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As ICA: Changing the Supermarket Business, One Screen at a Time HBR case study mentions - Ica Signage 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 Ica Signage is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Ica Signage needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ica Signage to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the ICA: Changing the Supermarket Business, One Screen at a Time 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 Ica Signage has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Ica Signage, firm in the HBR case study ICA: Changing the Supermarket Business, One Screen at a Time needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Ica Signage 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.
Slow decision making process
– As mentioned earlier in the report, Ica Signage 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. Ica Signage 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.
Lack of clear differentiation of Ica Signage products
– To increase the profitability and margins on the products, Ica Signage needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Ica Signage 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study ICA: Changing the Supermarket Business, One Screen at a Time, in the dynamic environment Ica Signage has struggled to respond to the nimble upstart competition. Ica Signage has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities ICA: Changing the Supermarket Business, One Screen at a Time | 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 ICA: Changing the Supermarket Business, One Screen at a Time are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Ica Signage 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ica Signage 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.
Developing new processes and practices
– Ica Signage 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.
Creating value in data economy
– The success of analytics program of Ica Signage has opened avenues for new revenue streams for the organization in the industry. This can help Ica Signage to build a more holistic ecosystem as suggested in the ICA: Changing the Supermarket Business, One Screen at a Time case study. Ica Signage can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Ica Signage 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.
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 Ica Signage in the consumer business. Now Ica Signage can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Ica Signage 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.
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. Ica Signage can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ica Signage 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, ICA: Changing the Supermarket Business, One Screen at a Time, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ica Signage can use these opportunities to build new business models that can help the communities that Ica Signage operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ica Signage can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Ica Signage can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. ICA: Changing the Supermarket Business, One Screen at a Time 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
– Ica Signage 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 ICA: Changing the Supermarket Business, One Screen at a Time External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ICA: Changing the Supermarket Business, One Screen at a Time are -
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. Ica Signage 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.
Consumer confidence and its impact on Ica Signage 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 Ica Signage 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.
Stagnating economy with rate increase
– Ica Signage 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.
Shortening product life cycle
– it is one of the major threat that Ica Signage is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Ica Signage 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. Ica Signage 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. Ica Signage needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Regulatory challenges
– Ica Signage 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.
Technology acceleration in Forth Industrial Revolution
– Ica Signage has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Ica Signage 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.
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 Ica Signage 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, Ica Signage 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 ICA: Changing the Supermarket Business, One Screen at a Time .
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 Ica Signage business can come under increasing regulations regarding data privacy, data security, etc.
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. Ica Signage can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of ICA: Changing the Supermarket Business, One Screen at a Time 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 ICA: Changing the Supermarket Business, One Screen at a Time 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 ICA: Changing the Supermarket Business, One Screen at a Time 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 ICA: Changing the Supermarket Business, One Screen at a Time 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 ICA: Changing the Supermarket Business, One Screen at a Time 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 Ica Signage needs to make to build a sustainable competitive advantage.