Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Classic Knitwear and Guardian: A Perfect Fit? (Brief Case)
Classic Knitwear manufactures and distributes casual apparel, either unbranded or under a private-label brand name. Partly because Classic has no brand recognition with consumers, gross margins are low. To improve margins, the company considers partnering via a licensing agreement with Guardian, a manufacturer of insect repellent that has developed superior repellent technology for clothing. Unlike Classic Knitwear, Guardian is a well-known and well-respected brand in its target market of outdoor enthusiasts, and Classic Knitwear wants to take advantage of this by selling the new clothing line under the Guardian brand. The partnership presents many new opportunities for Classic Knitwear along with many risks. The CEO wants a quick decision in time for the company's upcoming investor call. The case explores challenges in product development, brand management, and consumer marketing. Students are required to complete a breakeven analysis and estimate product demand based on data presented in the case.
Swot Analysis of "Classic Knitwear and Guardian: A Perfect Fit? (Brief Case)" written by John A. Quelch, Patricia Girardi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Knitwear Classic facing as an external strategic factors. Some of the topics covered in Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) case study are - Strategic Management Strategies, Forecasting, Joint ventures, Market research, Product development, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) casestudy better are - – wage bills are increasing, central banks are concerned over increasing inflation, increasing commodity prices, increasing household debt because of falling income levels, geopolitical disruptions, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings,
competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Classic Knitwear and Guardian: A Perfect Fit? (Brief Case)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Knitwear Classic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Knitwear Classic 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 Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) can be done for the following purposes –
1. Strategic planning using facts provided in Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) case study
2. Improving business portfolio management of Knitwear Classic
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 Knitwear Classic
Strengths Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Knitwear Classic in Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Knitwear Classic in the sector have low bargaining power. Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Knitwear Classic to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Knitwear Classic in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) 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.
High brand equity
– Knitwear Classic has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Knitwear Classic to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Knitwear Classic 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 Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Knitwear Classic
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Knitwear Classic does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Knitwear Classic 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 Knitwear Classic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Sales & Marketing industry
– Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) firm has clearly differentiated products in the market place. This has enabled Knitwear Classic to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Knitwear Classic to invest into research and development (R&D) and innovation.
Innovation driven organization
– Knitwear Classic is one of the most innovative firm in sector. Manager in Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Knitwear Classic is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Knitwear Classic 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 Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Knitwear Classic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Knitwear Classic 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.
Weaknesses Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Classic Knitwear and Guardian: A Perfect Fit? (Brief Case), in the dynamic environment Knitwear Classic has struggled to respond to the nimble upstart competition. Knitwear Classic has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Classic Knitwear and Guardian: A Perfect Fit? (Brief Case), it seems that the employees of Knitwear Classic don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, Knitwear Classic 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.
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 Knitwear Classic supply chain. Even after few cautionary changes mentioned in the HBR case study - Classic Knitwear and Guardian: A Perfect Fit? (Brief Case), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Knitwear Classic vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) HBR case study mentions - Knitwear Classic 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 Knitwear Classic is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Knitwear Classic needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Knitwear Classic to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Knitwear Classic 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. Knitwear Classic 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.
Products dominated business model
– Even though Knitwear Classic 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 - Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Knitwear Classic 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 operating costs
– Compare to the competitors, firm in the HBR case study Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) 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 Knitwear Classic 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, John A. Quelch, Patricia Girardi suggests that, Knitwear Classic is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) | 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 Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) are -
Building a culture of innovation
– managers at Knitwear Classic 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.
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 Knitwear Classic 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Knitwear Classic can use these opportunities to build new business models that can help the communities that Knitwear Classic 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 Knitwear Classic can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Knitwear Classic 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
– Knitwear Classic 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.
Leveraging digital technologies
– Knitwear Classic 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.
Better consumer reach
– The expansion of the 5G network will help Knitwear Classic to increase its market reach. Knitwear Classic 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Knitwear Classic is facing challenges because of the dominance of functional experts in the organization. Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) 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.
Manufacturing automation
– Knitwear Classic 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Knitwear Classic 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.
Creating value in data economy
– The success of analytics program of Knitwear Classic has opened avenues for new revenue streams for the organization in the industry. This can help Knitwear Classic to build a more holistic ecosystem as suggested in the Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) case study. Knitwear Classic can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Knitwear Classic 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. Knitwear Classic 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.
Threats Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Classic Knitwear and Guardian: A Perfect Fit? (Brief Case), Knitwear Classic 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 Knitwear Classic
– 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 Knitwear Classic.
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.
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. Knitwear Classic can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Knitwear Classic needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Knitwear Classic is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Knitwear Classic 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.
Regulatory challenges
– Knitwear Classic 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.
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 Knitwear Classic business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Knitwear Classic 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 Knitwear Classic 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.
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 Knitwear Classic.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Knitwear Classic with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) 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 Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) 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 Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) 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 Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) 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 Classic Knitwear and Guardian: A Perfect Fit? (Brief Case) 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 Knitwear Classic needs to make to build a sustainable competitive advantage.