Green Hills Market Loyalty Program SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Green Hills Market Loyalty Program
With the competitive 2007 holiday season approaching, Gary Hawkins (CEO of Green Hills Market, an independent grocery retailer in Syracuse, NY) was looking for a promotional program that would keep his best customers coming to Green Hills for all of their holiday meal shopping. Hawkins knew that his larger competitors (such as Price Chopper, Wegmans, and Wal-Mart) would use their size and buying power to procure products at the lowest possible cost, enabling them to offer rock bottom prices. Hawkins was looking for a program that would take advantage of Green Hills' proprietary systems for tracking customers' buying patterns and shopping preferences. The promotional program under consideration was a continuity program, in which shoppers earned points that could be redeemed for pieces of Arzberg porcelain. Hawkins and his team needed to establish their objectives for the holiday season and decide whether or not the Arzberg promotion was right for Green Hills Market. The case can be accompanied by a data set ("M318 Green Hills Data Set") that captures weekly expenditures by a sample of 1000 households shopping at Green Hills Market before, during, and after the Arzberg promotional program. The students can use these data (and other information available in the case) to examine how well the Arzberg promotion actually worked. "M318 Green Hills Data Set" can be obtained from cases_requests@gsb.stanford.edu.
Swot Analysis of "Green Hills Market Loyalty Program" written by James Lattin, Meredith P. Jensen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hills Arzberg facing as an external strategic factors. Some of the topics covered in Green Hills Market Loyalty Program case study are - Strategic Management Strategies, IT, Motivating people, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Green Hills Market Loyalty Program casestudy better are - – talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels,
there is backlash against globalization, increasing energy prices, etc
Introduction to SWOT Analysis of Green Hills Market Loyalty Program
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Green Hills Market Loyalty Program case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hills Arzberg, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hills Arzberg 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 Green Hills Market Loyalty Program can be done for the following purposes –
1. Strategic planning using facts provided in Green Hills Market Loyalty Program case study
2. Improving business portfolio management of Hills Arzberg
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 Hills Arzberg
Strengths Green Hills Market Loyalty Program | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hills Arzberg in Green Hills Market Loyalty Program Harvard Business Review case study are -
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Hills Arzberg digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hills Arzberg 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.
Training and development
– Hills Arzberg has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Green Hills Market Loyalty Program 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Green Hills Market Loyalty Program firm has clearly differentiated products in the market place. This has enabled Hills Arzberg to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Hills Arzberg to invest into research and development (R&D) and innovation.
High brand equity
– Hills Arzberg has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hills Arzberg to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Hills Arzberg is present in almost all the verticals within the industry. This has provided firm in Green Hills Market Loyalty Program 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.
Ability to recruit top talent
– Hills Arzberg is one of the leading recruiters in the industry. Managers in the Green Hills Market Loyalty Program are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Hills Arzberg in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Sales & Marketing field
– Hills Arzberg 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 Hills Arzberg in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Hills Arzberg 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 James Lattin, Meredith P. Jensen 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.
Low bargaining power of suppliers
– Suppliers of Hills Arzberg in the sector have low bargaining power. Green Hills Market Loyalty Program has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hills Arzberg to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Hills Arzberg is one of the most innovative firm in sector. Manager in Green Hills Market Loyalty Program Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Hills Arzberg
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hills Arzberg does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Green Hills Market Loyalty Program | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Green Hills Market Loyalty Program are -
High cash cycle compare to competitors
Hills Arzberg 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.
Interest costs
– Compare to the competition, Hills Arzberg 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 strategic competitive environment developments
– As Green Hills Market Loyalty Program HBR case study mentions - Hills Arzberg 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.
Slow decision making process
– As mentioned earlier in the report, Hills Arzberg 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. Hills Arzberg 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.
No frontier risks strategy
– After analyzing the HBR case study Green Hills Market Loyalty Program, 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.
Low market penetration in new markets
– Outside its home market of Hills Arzberg, firm in the HBR case study Green Hills Market Loyalty Program needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Hills Arzberg products
– To increase the profitability and margins on the products, Hills Arzberg needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Hills Arzberg is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Hills Arzberg needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hills Arzberg to focus more on services rather than just following the product oriented approach.
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 Hills Arzberg supply chain. Even after few cautionary changes mentioned in the HBR case study - Green Hills Market Loyalty Program, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hills Arzberg vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Hills Arzberg 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Green Hills Market Loyalty Program 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 Hills Arzberg has relatively successful track record of launching new products.
Opportunities Green Hills Market Loyalty Program | 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 Green Hills Market Loyalty Program are -
Buying journey improvements
– Hills Arzberg can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Green Hills Market Loyalty Program 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hills Arzberg is facing challenges because of the dominance of functional experts in the organization. Green Hills Market Loyalty Program 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.
Developing new processes and practices
– Hills Arzberg 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.
Learning at scale
– Online learning technologies has now opened space for Hills Arzberg 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hills Arzberg can use these opportunities to build new business models that can help the communities that Hills Arzberg operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Creating value in data economy
– The success of analytics program of Hills Arzberg has opened avenues for new revenue streams for the organization in the industry. This can help Hills Arzberg to build a more holistic ecosystem as suggested in the Green Hills Market Loyalty Program case study. Hills Arzberg can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Hills Arzberg 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. Hills Arzberg can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Hills Arzberg to increase its market reach. Hills Arzberg 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hills Arzberg 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, Green Hills Market Loyalty Program, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hills Arzberg 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 Hills Arzberg to hire the very best people irrespective of their geographical location.
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. Hills Arzberg 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. Hills Arzberg 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 Hills Arzberg 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.
Threats Green Hills Market Loyalty Program External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Green Hills Market Loyalty Program are -
Shortening product life cycle
– it is one of the major threat that Hills Arzberg is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Hills Arzberg needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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. Hills Arzberg 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.
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.
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 Hills Arzberg.
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 Hills Arzberg business can come under increasing regulations regarding data privacy, data security, etc.
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.
High dependence on third party suppliers
– Hills Arzberg 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Green Hills Market Loyalty Program, Hills Arzberg 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 .
Increasing wage structure of Hills Arzberg
– 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 Hills Arzberg.
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 Hills Arzberg in the Sales & Marketing sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Hills Arzberg has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Hills Arzberg 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.
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. Hills Arzberg 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 Green Hills Market Loyalty Program 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 Green Hills Market Loyalty Program 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 Green Hills Market Loyalty Program 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 Green Hills Market Loyalty Program 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 Green Hills Market Loyalty Program 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 Hills Arzberg needs to make to build a sustainable competitive advantage.
