Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed)
An established winery's first marketing director is charged with reviving the once-hot brand. Cofounded by an expert winemaker with ties to the famous ChA?teau Lafite-Rothschild, Clos Du Val had seen its glory days, with high ratings accompanied by robust sales. During the 1990s, however, sales had begun to lag, though it was unclear why. What should the new marketing director do first? A teaching note is available to verified faculty that covers both this condensed A and B case and the longer A and B cases as well as the follow-up C case (UVA-M-0749); a multimedia case supplement featuring interviews with the principals is also available.
Swot Analysis of "Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed)" written by Marian Moore includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Clos Val facing as an external strategic factors. Some of the topics covered in Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) case study are - Strategic Management Strategies, Market research, Pricing, Public relations and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) casestudy better are - – cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, technology disruption, there is backlash against globalization, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy,
supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Clos Val, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Clos Val 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 Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) can be done for the following purposes –
1. Strategic planning using facts provided in Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) case study
2. Improving business portfolio management of Clos Val
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 Clos Val
Strengths Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Clos Val in Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) Harvard Business Review case study are -
Ability to recruit top talent
– Clos Val is one of the leading recruiters in the industry. Managers in the Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Sales & Marketing field
– Clos Val is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Clos Val in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Sales & Marketing industry
– Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) firm has clearly differentiated products in the market place. This has enabled Clos Val to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Clos Val to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Clos Val 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 Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Clos Val 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 Marian Moore 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.
Cross disciplinary teams
– Horizontal connected teams at the Clos Val 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Clos Val digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Clos Val 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.
High switching costs
– The high switching costs that Clos Val 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.
Diverse revenue streams
– Clos Val is present in almost all the verticals within the industry. This has provided firm in Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) 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.
Training and development
– Clos Val has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) 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.
Learning organization
- Clos Val 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 Clos Val is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Clos Val is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) are -
Skills based hiring
– The stress on hiring functional specialists at Clos Val 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 Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) 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 Clos Val 's lucrative customers.
Products dominated business model
– Even though Clos Val 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 - Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) 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 Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) can leverage the sales team experience to cultivate customer relationships as Clos Val is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed), it seems that the employees of Clos Val 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.
Slow decision making process
– As mentioned earlier in the report, Clos Val 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. Clos Val 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.
Increasing silos among functional specialists
– The organizational structure of Clos Val is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Clos Val needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Clos Val to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) 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 Clos Val has relatively successful track record of launching new products.
Need for greater diversity
– Clos Val 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.
Lack of clear differentiation of Clos Val products
– To increase the profitability and margins on the products, Clos Val needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Clos Val 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.
Opportunities Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) | 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 Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Clos Val is facing challenges because of the dominance of functional experts in the organization. Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) 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 Clos Val 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.
Leveraging digital technologies
– Clos Val 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.
Manufacturing automation
– Clos Val 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, Clos Val 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.
Loyalty marketing
– Clos Val has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Buying journey improvements
– Clos Val can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) 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.
Using analytics as competitive advantage
– Clos Val 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 Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Clos Val to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Clos Val 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, Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed), 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 Clos Val has opened avenues for new revenue streams for the organization in the industry. This can help Clos Val to build a more holistic ecosystem as suggested in the Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) case study. Clos Val can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Clos Val 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Clos Val 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 Clos Val 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.
Threats Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Clos Val 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 Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Clos Val 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.
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 Clos Val.
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. Clos Val 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.
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 Clos Val in the Sales & Marketing sector and impact the bottomline of the organization.
Increasing wage structure of Clos Val
– 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 Clos Val.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed), Clos Val 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 acceleration in Forth Industrial Revolution
– Clos Val has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Clos Val 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.
Regulatory challenges
– Clos Val 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.
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. Clos Val needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Clos Val 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.
Shortening product life cycle
– it is one of the major threat that Clos Val 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 Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) 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 Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) 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 Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) 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 Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) 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 Brooke Correll and Clos Du Val: Adventures in Napa Valley (A) and (B) (Condensed) 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 Clos Val needs to make to build a sustainable competitive advantage.