Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A)
The NutraSweet Co. has very successfully marketed aspartame, a low-calorie, high-intensity sweetener, around the world. NutraSweet's position was protected by patents until 1987 in Europe, Canada, and Japan, and until the end of 1992 in the United States. The case series describes the competition that ensued between NutraSweet and the Holland Sweetener Co. (HSC) following HSC's entry into the aspartame market in 1987. Describes the subsequent move and countermove in both the marketplace and the courts. Also, discusses the business "game" that takes place at both the tactical and value levels. Ends with the final countdown to the expiration of NutraSweet's U.S. patent.
Authors :: Adam Brandenburger, Maryellen Costello, Julia Kou
Swot Analysis of "Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A)" written by Adam Brandenburger, Maryellen Costello, Julia Kou includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nutrasweet Sweetener facing as an external strategic factors. Some of the topics covered in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) case study are - Strategic Management Strategies, Competitive strategy, Intellectual property and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) casestudy better are - – wage bills are increasing, geopolitical disruptions, increasing energy prices, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, increasing commodity prices,
challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nutrasweet Sweetener, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nutrasweet Sweetener 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) can be done for the following purposes –
1. Strategic planning using facts provided in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) case study
2. Improving business portfolio management of Nutrasweet Sweetener
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Nutrasweet Sweetener
Strengths Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nutrasweet Sweetener in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) Harvard Business Review case study are -
Successful track record of launching new products
– Nutrasweet Sweetener has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nutrasweet Sweetener 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.
Organizational Resilience of Nutrasweet Sweetener
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Nutrasweet Sweetener does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Nutrasweet Sweetener is one of the leading recruiters in the industry. Managers in the Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) 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.
Strong track record of project management
– Nutrasweet Sweetener is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Nutrasweet Sweetener 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 Nutrasweet Sweetener is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Nutrasweet Sweetener has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nutrasweet Sweetener to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Nutrasweet Sweetener digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nutrasweet Sweetener 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.
Diverse revenue streams
– Nutrasweet Sweetener is present in almost all the verticals within the industry. This has provided firm in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Highly skilled collaborators
– Nutrasweet Sweetener 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) 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 Nutrasweet Sweetener 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.
Innovation driven organization
– Nutrasweet Sweetener is one of the most innovative firm in sector. Manager in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) are -
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 Nutrasweet Sweetener supply chain. Even after few cautionary changes mentioned in the HBR case study - Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nutrasweet Sweetener vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Nutrasweet Sweetener 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.
Increasing silos among functional specialists
– The organizational structure of Nutrasweet Sweetener is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Nutrasweet Sweetener needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Nutrasweet Sweetener to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Nutrasweet Sweetener 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.
Lack of clear differentiation of Nutrasweet Sweetener products
– To increase the profitability and margins on the products, Nutrasweet Sweetener 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A), is just above the industry average. Nutrasweet Sweetener 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A), it seems that the employees of Nutrasweet Sweetener 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.
Aligning sales with marketing
– It come across in the case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) can leverage the sales team experience to cultivate customer relationships as Nutrasweet Sweetener is planning to shift buying processes online.
Interest costs
– Compare to the competition, Nutrasweet Sweetener 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.
Products dominated business model
– Even though Nutrasweet Sweetener 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 - Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Nutrasweet Sweetener has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Opportunities Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) | 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) are -
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 Nutrasweet Sweetener in the consumer business. Now Nutrasweet Sweetener can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Nutrasweet Sweetener to increase its market reach. Nutrasweet Sweetener will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Developing new processes and practices
– Nutrasweet Sweetener can develop new processes and procedures in Strategy & Execution 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.
Creating value in data economy
– The success of analytics program of Nutrasweet Sweetener has opened avenues for new revenue streams for the organization in the industry. This can help Nutrasweet Sweetener to build a more holistic ecosystem as suggested in the Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) case study. Nutrasweet Sweetener can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Nutrasweet Sweetener can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Nutrasweet Sweetener 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. Nutrasweet Sweetener 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.
Learning at scale
– Online learning technologies has now opened space for Nutrasweet Sweetener 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nutrasweet Sweetener 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, Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Nutrasweet Sweetener can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Nutrasweet Sweetener can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Nutrasweet Sweetener 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 Nutrasweet Sweetener to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Nutrasweet Sweetener 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.
Building a culture of innovation
– managers at Nutrasweet Sweetener 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 Strategy & Execution segment.
Threats Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) are -
Environmental challenges
– Nutrasweet Sweetener 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. Nutrasweet Sweetener can take advantage of this fund but it will also bring new competitors in the Strategy & Execution 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. Nutrasweet Sweetener needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nutrasweet Sweetener in the Strategy & Execution industry. The Strategy & Execution 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.
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.
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.
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. Nutrasweet Sweetener 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.
Technology acceleration in Forth Industrial Revolution
– Nutrasweet Sweetener has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Nutrasweet Sweetener needs to keep up with the evolution of technology in the Strategy & Execution 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A), Nutrasweet Sweetener may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Stagnating economy with rate increase
– Nutrasweet Sweetener 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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Nutrasweet Sweetener can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Nutrasweet Sweetener 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.
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 Nutrasweet Sweetener in the Strategy & Execution sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nutrasweet Sweetener with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) 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 Nutrasweet Sweetener needs to make to build a sustainable competitive advantage.
