Canadian Western Agribition: Beefing up the Growth Strategy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Canadian Western Agribition: Beefing up the Growth Strategy
In early June 2014, the chief executive officer of Canadian Western Agribition, a not-for-profit organization, is reviewing the results of its 2013 agricultural show, a fair that takes place every November in Regina, Saskatchewan. The week-long event includes the largest livestock show in Canada, an extensive agribusiness tradeshow, a large marketplace of home products, a rodeo competition, and entertainment and educational programs that have a focus on First Nations. After bouncing back from major financial problems three years earlier, Agribition had generated almost $4 million in 2013. How can management ensure that it will continue to grow as a world-class event? Which customer segment - rural, urban or international - should be targeted? How can more visitors, ranchers and breeders be attracted to pay the admission, entry and commission fees that account for 90 per cent of the organization's budget? How can corporate sponsorship and government grants be increased? To maintain its status as one of the best beef shows on the continent, management must implement a marketing and operations strategy that will meet the needs and interests of many groups, a key element for growth and profitability.
Swot Analysis of "Canadian Western Agribition: Beefing up the Growth Strategy" written by Tatiana Levit, Michael Taylor includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Agribition Event facing as an external strategic factors. Some of the topics covered in Canadian Western Agribition: Beefing up the Growth Strategy case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Canadian Western Agribition: Beefing up the Growth Strategy casestudy better are - – increasing transportation and logistics costs, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings,
challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Canadian Western Agribition: Beefing up the Growth Strategy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Canadian Western Agribition: Beefing up the Growth Strategy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Agribition Event, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Agribition Event 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 Canadian Western Agribition: Beefing up the Growth Strategy can be done for the following purposes –
1. Strategic planning using facts provided in Canadian Western Agribition: Beefing up the Growth Strategy case study
2. Improving business portfolio management of Agribition Event
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 Agribition Event
Strengths Canadian Western Agribition: Beefing up the Growth Strategy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Agribition Event in Canadian Western Agribition: Beefing up the Growth Strategy Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Agribition Event in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Agribition Event 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 Canadian Western Agribition: Beefing up the Growth Strategy HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Agribition Event 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.
Ability to recruit top talent
– Agribition Event is one of the leading recruiters in the industry. Managers in the Canadian Western Agribition: Beefing up the Growth Strategy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Agribition Event 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.
Effective Research and Development (R&D)
– Agribition Event 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 Canadian Western Agribition: Beefing up the Growth Strategy - 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
– Canadian Western Agribition: Beefing up the Growth Strategy firm has clearly differentiated products in the market place. This has enabled Agribition Event to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Agribition Event to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Agribition Event has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Agribition Event 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Agribition Event digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Agribition Event 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 brand equity
– Agribition Event has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Agribition Event to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Sales & Marketing field
– Agribition Event 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 Agribition Event in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Agribition Event in the sector have low bargaining power. Canadian Western Agribition: Beefing up the Growth Strategy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Agribition Event to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Canadian Western Agribition: Beefing up the Growth Strategy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Canadian Western Agribition: Beefing up the Growth Strategy are -
Slow decision making process
– As mentioned earlier in the report, Agribition Event 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. Agribition Event 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 cash cycle compare to competitors
Agribition Event 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Canadian Western Agribition: Beefing up the Growth Strategy 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 Agribition Event 's lucrative customers.
Interest costs
– Compare to the competition, Agribition Event 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, Agribition Event is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Canadian Western Agribition: Beefing up the Growth Strategy can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Agribition Event is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Agribition Event needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Agribition Event to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Canadian Western Agribition: Beefing up the Growth Strategy, in the dynamic environment Agribition Event has struggled to respond to the nimble upstart competition. Agribition Event has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Tatiana Levit, Michael Taylor suggests that, Agribition Event 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Canadian Western Agribition: Beefing up the Growth Strategy, is just above the industry average. Agribition Event 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 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 Agribition Event supply chain. Even after few cautionary changes mentioned in the HBR case study - Canadian Western Agribition: Beefing up the Growth Strategy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Agribition Event vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Canadian Western Agribition: Beefing up the Growth Strategy 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 Canadian Western Agribition: Beefing up the Growth Strategy can leverage the sales team experience to cultivate customer relationships as Agribition Event is planning to shift buying processes online.
Opportunities Canadian Western Agribition: Beefing up the Growth Strategy | 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 Canadian Western Agribition: Beefing up the Growth Strategy are -
Developing new processes and practices
– Agribition Event 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.
Buying journey improvements
– Agribition Event can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Canadian Western Agribition: Beefing up the Growth Strategy 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.
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 Agribition Event 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 Agribition Event in the consumer business. Now Agribition Event can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Agribition Event 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Agribition Event can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Agribition Event 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 Canadian Western Agribition: Beefing up the Growth Strategy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Agribition Event to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Agribition Event 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.
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. Agribition Event can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Agribition Event has opened avenues for new revenue streams for the organization in the industry. This can help Agribition Event to build a more holistic ecosystem as suggested in the Canadian Western Agribition: Beefing up the Growth Strategy case study. Agribition Event can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Agribition Event to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Agribition Event to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Agribition Event 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.
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. Agribition Event can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Canadian Western Agribition: Beefing up the Growth Strategy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Canadian Western Agribition: Beefing up the Growth Strategy are -
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. Agribition Event 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.
Stagnating economy with rate increase
– Agribition Event 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
– Agribition Event 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Agribition Event 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.
Consumer confidence and its impact on Agribition Event 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.
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 Agribition Event business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Agribition Event
– 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 Agribition Event.
Shortening product life cycle
– it is one of the major threat that Agribition Event is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Agribition Event 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. Agribition Event can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Technology acceleration in Forth Industrial Revolution
– Agribition Event has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Agribition Event 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.
High dependence on third party suppliers
– Agribition Event 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Canadian Western Agribition: Beefing up the Growth Strategy, Agribition Event 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 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.
Weighted SWOT Analysis of Canadian Western Agribition: Beefing up the Growth Strategy 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 Canadian Western Agribition: Beefing up the Growth Strategy 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 Canadian Western Agribition: Beefing up the Growth Strategy 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 Canadian Western Agribition: Beefing up the Growth Strategy 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 Canadian Western Agribition: Beefing up the Growth Strategy 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 Agribition Event needs to make to build a sustainable competitive advantage.
