Case Study Description of The Kinkajou Bottle Cutter
The inventor of the Kinkajou, a portable glass bottle cutter, has successfully completed a crowd-sourced financing campaign. His funding goal of $75,000 was considered to be quite ambitious and the timeframe in which he aimed to secure the funding was only 30 days. He managed the campaign impressively and exceeded his goal on the last day of the campaign. At this point in his business development, this entrepreneur has secured an offshore manufacturer, all backers have received their products and he has resolved a number of technical and operational problems. With so many challenges behind him, he now faces questions of future distribution through multiple wholesalers and is considering the opportunity of joining with a major international retailer. Laurentian University
Swot Analysis of "The Kinkajou Bottle Cutter" written by Ron Mulholland includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kinkajou Cutter facing as an external strategic factors. Some of the topics covered in The Kinkajou Bottle Cutter case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the The Kinkajou Bottle Cutter casestudy better are - – there is increasing trade war between United States & China, supply chains are disrupted by pandemic , there is backlash against globalization, increasing energy prices, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs,
wage bills are increasing, increasing commodity prices, etc
Introduction to SWOT Analysis of The Kinkajou Bottle Cutter
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Kinkajou Bottle Cutter case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kinkajou Cutter, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kinkajou Cutter 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 The Kinkajou Bottle Cutter can be done for the following purposes –
1. Strategic planning using facts provided in The Kinkajou Bottle Cutter case study
2. Improving business portfolio management of Kinkajou Cutter
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 Kinkajou Cutter
Strengths The Kinkajou Bottle Cutter | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kinkajou Cutter in The Kinkajou Bottle Cutter Harvard Business Review case study are -
Diverse revenue streams
– Kinkajou Cutter is present in almost all the verticals within the industry. This has provided firm in The Kinkajou Bottle Cutter 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.
Ability to recruit top talent
– Kinkajou Cutter is one of the leading recruiters in the industry. Managers in the The Kinkajou Bottle Cutter are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Kinkajou Cutter is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Kinkajou Cutter has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Kinkajou Cutter to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Kinkajou Cutter 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 Kinkajou Cutter is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Kinkajou Bottle Cutter Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Kinkajou Cutter 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 Ron Mulholland 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.
Sustainable margins compare to other players in Sales & Marketing industry
– The Kinkajou Bottle Cutter firm has clearly differentiated products in the market place. This has enabled Kinkajou Cutter to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Kinkajou Cutter to invest into research and development (R&D) and innovation.
Innovation driven organization
– Kinkajou Cutter is one of the most innovative firm in sector. Manager in The Kinkajou Bottle Cutter Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Kinkajou Cutter 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.
Operational resilience
– The operational resilience strategy in the The Kinkajou Bottle Cutter 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.
Training and development
– Kinkajou Cutter has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Kinkajou Bottle Cutter 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.
Effective Research and Development (R&D)
– Kinkajou Cutter 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 The Kinkajou Bottle Cutter - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses The Kinkajou Bottle Cutter | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Kinkajou Bottle Cutter are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Kinkajou Bottle Cutter, in the dynamic environment Kinkajou Cutter has struggled to respond to the nimble upstart competition. Kinkajou Cutter has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Kinkajou Cutter supply chain. Even after few cautionary changes mentioned in the HBR case study - The Kinkajou Bottle Cutter, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Kinkajou Cutter vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Kinkajou Cutter 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.
Interest costs
– Compare to the competition, Kinkajou Cutter 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Kinkajou Cutter is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Kinkajou Bottle Cutter can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Kinkajou Cutter 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. Kinkajou Cutter 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Ron Mulholland suggests that, Kinkajou Cutter 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.
Increasing silos among functional specialists
– The organizational structure of Kinkajou Cutter is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Kinkajou Cutter needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Kinkajou Cutter to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Kinkajou Cutter products
– To increase the profitability and margins on the products, Kinkajou Cutter needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Kinkajou Bottle Cutter, is just above the industry average. Kinkajou Cutter 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.
Aligning sales with marketing
– It come across in the case study The Kinkajou Bottle Cutter 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 The Kinkajou Bottle Cutter can leverage the sales team experience to cultivate customer relationships as Kinkajou Cutter is planning to shift buying processes online.
Opportunities The Kinkajou Bottle Cutter | 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 The Kinkajou Bottle Cutter are -
Manufacturing automation
– Kinkajou Cutter 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Kinkajou Cutter 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, The Kinkajou Bottle Cutter, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Kinkajou Cutter is facing challenges because of the dominance of functional experts in the organization. The Kinkajou Bottle Cutter 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Kinkajou Cutter can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Kinkajou Cutter 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.
Learning at scale
– Online learning technologies has now opened space for Kinkajou Cutter 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.
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. Kinkajou Cutter 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. Kinkajou Cutter 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Kinkajou Cutter 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.
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 Kinkajou Cutter in the consumer business. Now Kinkajou Cutter can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Kinkajou Cutter 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 The Kinkajou Bottle Cutter - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Kinkajou Cutter to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Kinkajou Cutter 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Kinkajou Cutter 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.
Loyalty marketing
– Kinkajou Cutter 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.
Threats The Kinkajou Bottle Cutter External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Kinkajou Bottle Cutter are -
Shortening product life cycle
– it is one of the major threat that Kinkajou Cutter is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Kinkajou Cutter with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Kinkajou Cutter
– 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 Kinkajou Cutter.
Consumer confidence and its impact on Kinkajou Cutter 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.
Stagnating economy with rate increase
– Kinkajou Cutter 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
– Kinkajou Cutter 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.
Technology acceleration in Forth Industrial Revolution
– Kinkajou Cutter has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Kinkajou Cutter 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Kinkajou Bottle Cutter, Kinkajou Cutter 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 .
Environmental challenges
– Kinkajou Cutter 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. Kinkajou Cutter can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Kinkajou Cutter 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 The Kinkajou Bottle Cutter .
High dependence on third party suppliers
– Kinkajou Cutter 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Kinkajou Cutter 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.
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. Kinkajou Cutter 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.
Weighted SWOT Analysis of The Kinkajou Bottle Cutter 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 The Kinkajou Bottle Cutter 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 The Kinkajou Bottle Cutter 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 The Kinkajou Bottle Cutter 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 The Kinkajou Bottle Cutter 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 Kinkajou Cutter needs to make to build a sustainable competitive advantage.