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Launching Krispy Natural: Cracking the Product Management Code SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Launching Krispy Natural: Cracking the Product Management Code


Pemberton Products is a U.S. market leader in the cookie and bakery snacks segment of the sweet snack market. Looking to expand into the salty snack market, the company acquires Krispy Inc., a maker of salty snack crackers located in the southeastern U.S. To compete with premium cracker brands, Pemberton plans to reformulate and re-launch the Krispy brand as "Krispy Natural," which offers natural ingredients, improved taste, and revised packaging. Market tests in Columbus, Ohio show market share results that are double the company projections while results in 3 cities in the southeastern U.S. fall well below expectations. The marketing director must interpret the market test results, consider possible competitive responses to the new brand, and present his recommendation for a national rollout to the VP of sales and marketing.

Authors :: Frank V. Cespedes, Heather Beckham

Topics :: Sales & Marketing

Tags :: Collaboration, Competition, Data, Government, Growth strategy, Leading teams, Market research, Mergers & acquisitions, Organizational culture, Product development, Strategy execution, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Launching Krispy Natural: Cracking the Product Management Code" written by Frank V. Cespedes, Heather Beckham includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Krispy Snack facing as an external strategic factors. Some of the topics covered in Launching Krispy Natural: Cracking the Product Management Code case study are - Strategic Management Strategies, Collaboration, Competition, Data, Government, Growth strategy, Leading teams, Market research, Mergers & acquisitions, Organizational culture, Product development, Strategy execution and Sales & Marketing.


Some of the macro environment factors that can be used to understand the Launching Krispy Natural: Cracking the Product Management Code casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, technology disruption, there is increasing trade war between United States & China, geopolitical disruptions, increasing commodity prices, increasing energy prices, etc



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Introduction to SWOT Analysis of Launching Krispy Natural: Cracking the Product Management Code


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Launching Krispy Natural: Cracking the Product Management Code case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Krispy Snack, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Krispy Snack 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 Launching Krispy Natural: Cracking the Product Management Code can be done for the following purposes –
1. Strategic planning using facts provided in Launching Krispy Natural: Cracking the Product Management Code case study
2. Improving business portfolio management of Krispy Snack
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 Krispy Snack




Strengths Launching Krispy Natural: Cracking the Product Management Code | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Krispy Snack in Launching Krispy Natural: Cracking the Product Management Code Harvard Business Review case study are -

Diverse revenue streams

– Krispy Snack is present in almost all the verticals within the industry. This has provided firm in Launching Krispy Natural: Cracking the Product Management Code 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.

Highly skilled collaborators

– Krispy Snack 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 Launching Krispy Natural: Cracking the Product Management Code HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Strong track record of project management

– Krispy Snack is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Operational resilience

– The operational resilience strategy in the Launching Krispy Natural: Cracking the Product Management Code 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.

Innovation driven organization

– Krispy Snack is one of the most innovative firm in sector. Manager in Launching Krispy Natural: Cracking the Product Management Code Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Successful track record of launching new products

– Krispy Snack has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Krispy Snack 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.

High brand equity

– Krispy Snack has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Krispy Snack to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Ability to recruit top talent

– Krispy Snack is one of the leading recruiters in the industry. Managers in the Launching Krispy Natural: Cracking the Product Management Code are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Cross disciplinary teams

– Horizontal connected teams at the Krispy Snack 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.

Analytics focus

– Krispy Snack 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 Frank V. Cespedes, Heather Beckham 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.

Effective Research and Development (R&D)

– Krispy Snack 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 Launching Krispy Natural: Cracking the Product Management Code - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Sustainable margins compare to other players in Sales & Marketing industry

– Launching Krispy Natural: Cracking the Product Management Code firm has clearly differentiated products in the market place. This has enabled Krispy Snack to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Krispy Snack to invest into research and development (R&D) and innovation.






Weaknesses Launching Krispy Natural: Cracking the Product Management Code | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Launching Krispy Natural: Cracking the Product Management Code are -

Workers concerns about automation

– As automation is fast increasing in the segment, Krispy Snack 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.

Increasing silos among functional specialists

– The organizational structure of Krispy Snack is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Krispy Snack needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Krispy Snack 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 Krispy Snack supply chain. Even after few cautionary changes mentioned in the HBR case study - Launching Krispy Natural: Cracking the Product Management Code, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Krispy Snack vulnerable to further global disruptions in South East Asia.

No frontier risks strategy

– After analyzing the HBR case study Launching Krispy Natural: Cracking the Product Management Code, 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 Krispy Snack, firm in the HBR case study Launching Krispy Natural: Cracking the Product Management Code needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Krispy Snack is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Launching Krispy Natural: Cracking the Product Management Code can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Interest costs

– Compare to the competition, Krispy Snack 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.

Lack of clear differentiation of Krispy Snack products

– To increase the profitability and margins on the products, Krispy Snack needs to provide more differentiated products than what it is currently offering in the marketplace.

Capital Spending Reduction

– Even during the low interest decade, Krispy Snack 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Launching Krispy Natural: Cracking the Product Management Code, is just above the industry average. Krispy Snack needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

High cash cycle compare to competitors

Krispy Snack 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.




Opportunities Launching Krispy Natural: Cracking the Product Management Code | 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 Launching Krispy Natural: Cracking the Product Management Code are -

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Krispy Snack can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Krispy Snack can use these opportunities to build new business models that can help the communities that Krispy Snack operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Krispy Snack 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, Launching Krispy Natural: Cracking the Product Management Code, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Krispy Snack 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.

Buying journey improvements

– Krispy Snack can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Launching Krispy Natural: Cracking the Product Management Code 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.

Developing new processes and practices

– Krispy Snack 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.

Better consumer reach

– The expansion of the 5G network will help Krispy Snack to increase its market reach. Krispy Snack 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, Krispy Snack is facing challenges because of the dominance of functional experts in the organization. Launching Krispy Natural: Cracking the Product Management Code 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.

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 Krispy Snack 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.

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 Krispy Snack in the consumer business. Now Krispy Snack can target international markets with far fewer capital restrictions requirements than the existing system.

Using analytics as competitive advantage

– Krispy Snack 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 Launching Krispy Natural: Cracking the Product Management Code - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Krispy Snack to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Leveraging digital technologies

– Krispy Snack 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.

Building a culture of innovation

– managers at Krispy Snack 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 Launching Krispy Natural: Cracking the Product Management Code External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Launching Krispy Natural: Cracking the Product Management Code are -

Stagnating economy with rate increase

– Krispy Snack 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.

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 Krispy Snack.

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

Environmental challenges

– Krispy Snack 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. Krispy Snack can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Krispy Snack 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.

Technology acceleration in Forth Industrial Revolution

– Krispy Snack has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Krispy Snack 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Krispy Snack 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 Launching Krispy Natural: Cracking the Product Management Code .

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Launching Krispy Natural: Cracking the Product Management Code, Krispy Snack 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 .

Consumer confidence and its impact on Krispy Snack 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.

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 Krispy Snack in the Sales & Marketing sector and impact the bottomline of the organization.

High dependence on third party suppliers

– Krispy Snack 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.

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. Krispy Snack can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Shortening product life cycle

– it is one of the major threat that Krispy Snack is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.




Weighted SWOT Analysis of Launching Krispy Natural: Cracking the Product Management Code 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 Launching Krispy Natural: Cracking the Product Management Code 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 Launching Krispy Natural: Cracking the Product Management Code 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 Launching Krispy Natural: Cracking the Product Management Code 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 Launching Krispy Natural: Cracking the Product Management Code 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 Krispy Snack needs to make to build a sustainable competitive advantage.



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