Case Study Description of MilkMade Ice Cream: Running A Successful Crowdfunding Campaign
This case follows a young entrepreneur as she launches a crowdfunding campaign to expand her already-established craft ice cream company. The story reveals the several steps taken from the planning phase through execution of the online campaign. This case provides an opportunity for students to learn about the benefits and drawbacks of crowdfunding, both as a form of marketing a business as well as garnering capital for expansion of a small business.
Swot Analysis of "MilkMade Ice Cream: Running A Successful Crowdfunding Campaign" written by Meghan Murray, Gosia Glinska includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Crowdfunding Campaign facing as an external strategic factors. Some of the topics covered in MilkMade Ice Cream: Running A Successful Crowdfunding Campaign case study are - Strategic Management Strategies, Venture capital and Sales & Marketing.
Some of the macro environment factors that can be used to understand the MilkMade Ice Cream: Running A Successful Crowdfunding Campaign casestudy better are - – increasing energy prices, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing,
increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of MilkMade Ice Cream: Running A Successful Crowdfunding Campaign
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MilkMade Ice Cream: Running A Successful Crowdfunding Campaign case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Crowdfunding Campaign, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Crowdfunding Campaign 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 MilkMade Ice Cream: Running A Successful Crowdfunding Campaign can be done for the following purposes –
1. Strategic planning using facts provided in MilkMade Ice Cream: Running A Successful Crowdfunding Campaign case study
2. Improving business portfolio management of Crowdfunding Campaign
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 Crowdfunding Campaign
Strengths MilkMade Ice Cream: Running A Successful Crowdfunding Campaign | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Crowdfunding Campaign in MilkMade Ice Cream: Running A Successful Crowdfunding Campaign Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Crowdfunding Campaign in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Sales & Marketing industry
– MilkMade Ice Cream: Running A Successful Crowdfunding Campaign firm has clearly differentiated products in the market place. This has enabled Crowdfunding Campaign to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Crowdfunding Campaign to invest into research and development (R&D) and innovation.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Crowdfunding Campaign digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Crowdfunding Campaign 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
– Crowdfunding Campaign 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 Meghan Murray, Gosia Glinska 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.
Successful track record of launching new products
– Crowdfunding Campaign has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Crowdfunding Campaign 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.
Training and development
– Crowdfunding Campaign has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in MilkMade Ice Cream: Running A Successful Crowdfunding Campaign 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.
Ability to recruit top talent
– Crowdfunding Campaign is one of the leading recruiters in the industry. Managers in the MilkMade Ice Cream: Running A Successful Crowdfunding Campaign are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Crowdfunding Campaign has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in MilkMade Ice Cream: Running A Successful Crowdfunding Campaign HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Crowdfunding Campaign 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 Crowdfunding Campaign is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in MilkMade Ice Cream: Running A Successful Crowdfunding Campaign Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Crowdfunding Campaign 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.
High brand equity
– Crowdfunding Campaign has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Crowdfunding Campaign to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Crowdfunding Campaign 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.
Weaknesses MilkMade Ice Cream: Running A Successful Crowdfunding Campaign | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MilkMade Ice Cream: Running A Successful Crowdfunding Campaign are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the MilkMade Ice Cream: Running A Successful Crowdfunding Campaign 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 Crowdfunding Campaign has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Crowdfunding Campaign is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study MilkMade Ice Cream: Running A Successful Crowdfunding Campaign can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Crowdfunding Campaign 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.
Low market penetration in new markets
– Outside its home market of Crowdfunding Campaign, firm in the HBR case study MilkMade Ice Cream: Running A Successful Crowdfunding Campaign needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study MilkMade Ice Cream: Running A Successful Crowdfunding Campaign, in the dynamic environment Crowdfunding Campaign has struggled to respond to the nimble upstart competition. Crowdfunding Campaign has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Crowdfunding Campaign needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Products dominated business model
– Even though Crowdfunding Campaign 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 - MilkMade Ice Cream: Running A Successful Crowdfunding Campaign should strive to include more intangible value offerings along with its core products and services.
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 Crowdfunding Campaign supply chain. Even after few cautionary changes mentioned in the HBR case study - MilkMade Ice Cream: Running A Successful Crowdfunding Campaign, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Crowdfunding Campaign vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Crowdfunding Campaign products
– To increase the profitability and margins on the products, Crowdfunding Campaign needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study MilkMade Ice Cream: Running A Successful Crowdfunding Campaign 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 MilkMade Ice Cream: Running A Successful Crowdfunding Campaign can leverage the sales team experience to cultivate customer relationships as Crowdfunding Campaign is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study MilkMade Ice Cream: Running A Successful Crowdfunding Campaign, is just above the industry average. Crowdfunding Campaign 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.
Opportunities MilkMade Ice Cream: Running A Successful Crowdfunding Campaign | 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 MilkMade Ice Cream: Running A Successful Crowdfunding Campaign are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Crowdfunding Campaign 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.
Using analytics as competitive advantage
– Crowdfunding Campaign 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 MilkMade Ice Cream: Running A Successful Crowdfunding Campaign - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Crowdfunding Campaign to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Crowdfunding Campaign 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
– Crowdfunding Campaign 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, Crowdfunding Campaign is facing challenges because of the dominance of functional experts in the organization. MilkMade Ice Cream: Running A Successful Crowdfunding Campaign 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Crowdfunding Campaign 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, MilkMade Ice Cream: Running A Successful Crowdfunding Campaign, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Crowdfunding Campaign has opened avenues for new revenue streams for the organization in the industry. This can help Crowdfunding Campaign to build a more holistic ecosystem as suggested in the MilkMade Ice Cream: Running A Successful Crowdfunding Campaign case study. Crowdfunding Campaign can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Crowdfunding Campaign can use these opportunities to build new business models that can help the communities that Crowdfunding Campaign operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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. Crowdfunding Campaign can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Crowdfunding Campaign 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. Crowdfunding Campaign can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Crowdfunding Campaign can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Crowdfunding Campaign 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.
Threats MilkMade Ice Cream: Running A Successful Crowdfunding Campaign External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study MilkMade Ice Cream: Running A Successful Crowdfunding Campaign are -
Increasing wage structure of Crowdfunding Campaign
– 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 Crowdfunding Campaign.
Shortening product life cycle
– it is one of the major threat that Crowdfunding Campaign is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Crowdfunding Campaign 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 MilkMade Ice Cream: Running A Successful Crowdfunding Campaign, Crowdfunding Campaign 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 .
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Crowdfunding Campaign 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.
Regulatory challenges
– Crowdfunding Campaign 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.
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. Crowdfunding Campaign 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 Crowdfunding Campaign 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.
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 Crowdfunding Campaign.
Stagnating economy with rate increase
– Crowdfunding Campaign 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.
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. Crowdfunding Campaign needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of MilkMade Ice Cream: Running A Successful Crowdfunding Campaign 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 MilkMade Ice Cream: Running A Successful Crowdfunding Campaign 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 MilkMade Ice Cream: Running A Successful Crowdfunding Campaign 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 MilkMade Ice Cream: Running A Successful Crowdfunding Campaign 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 MilkMade Ice Cream: Running A Successful Crowdfunding Campaign 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 Crowdfunding Campaign needs to make to build a sustainable competitive advantage.
