Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B)
In 1999, Procter & Gamble (P&G) witnessed its first share increase against rival Kimberly-Clark (K-C) in the U.S. disposable diaper sector in five years. However, Sam's Club de-listed P&G's Pampers from most of its stores that August, limiting its diaper offerings to K-C's Huggies and its own private label brand White Cloud, introduced that same year. By mid-2000, P&G's stock had lost more than half its value, and the nature of the company's "special relationship" with Wal-Mart was being called into question.This case is a supplement to UV4013.
Authors :: Paul W. Farris, Mark Parry, Richard Johnson
Swot Analysis of "Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B)" written by Paul W. Farris, Mark Parry, Richard Johnson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Diaper G's facing as an external strategic factors. Some of the topics covered in Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) case study are - Strategic Management Strategies, Marketing, Pricing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) casestudy better are - – challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, wage bills are increasing,
increasing government debt because of Covid-19 spendings, technology disruption, etc
Introduction to SWOT Analysis of Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Diaper G's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Diaper G's 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 Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) can be done for the following purposes –
1. Strategic planning using facts provided in Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) case study
2. Improving business portfolio management of Diaper G's
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 Diaper G's
Strengths Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Diaper G's in Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) Harvard Business Review case study are -
Diverse revenue streams
– Diaper G's is present in almost all the verticals within the industry. This has provided firm in Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) 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.
Successful track record of launching new products
– Diaper G's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Diaper G's 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.
Learning organization
- Diaper G's 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 Diaper G's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Diaper G's in the sector have low bargaining power. Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Diaper G's to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Diaper G's 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.
Strong track record of project management
– Diaper G's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Diaper G's 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 Paul W. Farris, Mark Parry, Richard Johnson 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.
Training and development
– Diaper G's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) 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.
Organizational Resilience of Diaper G's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Diaper G's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Diaper G's 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 Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Diaper G's 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 Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) - 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
– Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) firm has clearly differentiated products in the market place. This has enabled Diaper G's to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Diaper G's to invest into research and development (R&D) and innovation.
Weaknesses Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) are -
Products dominated business model
– Even though Diaper G's 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 - Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) HBR case study mentions - Diaper G's 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.
No frontier risks strategy
– After analyzing the HBR case study Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B), 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) 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 Diaper G's has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B), is just above the industry average. Diaper G's 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.
Slow decision making process
– As mentioned earlier in the report, Diaper G's 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. Diaper G's 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.
Need for greater diversity
– Diaper G's has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B), in the dynamic environment Diaper G's has struggled to respond to the nimble upstart competition. Diaper G's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Diaper G's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Diaper G's products
– To increase the profitability and margins on the products, Diaper G's needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Diaper G's is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Diaper G's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Diaper G's to focus more on services rather than just following the product oriented approach.
Opportunities Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) | 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 Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) are -
Creating value in data economy
– The success of analytics program of Diaper G's has opened avenues for new revenue streams for the organization in the industry. This can help Diaper G's to build a more holistic ecosystem as suggested in the Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) case study. Diaper G's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Diaper G's in the consumer business. Now Diaper G's can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Diaper G's can use these opportunities to build new business models that can help the communities that Diaper G's operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Diaper G's is facing challenges because of the dominance of functional experts in the organization. Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Diaper G's 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Diaper G's 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.
Developing new processes and practices
– Diaper G's 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.
Using analytics as competitive advantage
– Diaper G's 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 Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Diaper G's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Diaper G's 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.
Manufacturing automation
– Diaper G's 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.
Building a culture of innovation
– managers at Diaper G's 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.
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. Diaper G's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Diaper G's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) are -
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.
Stagnating economy with rate increase
– Diaper G's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Diaper G's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Diaper G's 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 Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) .
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 Diaper G's in the Sales & Marketing sector and impact the bottomline 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. Diaper G's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Diaper G's 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. Diaper G's can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Diaper G's needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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
– Diaper G's 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.
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 Diaper G's business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Diaper G's 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.
Increasing wage structure of Diaper G's
– 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 Diaper G's.
Weighted SWOT Analysis of Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) 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 Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) 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 Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) 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 Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) 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 Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (B) 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 Diaper G's needs to make to build a sustainable competitive advantage.
