Swot Analysis of "Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B)" 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 (B) case study are - Strategic Management Strategies, 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 (B) casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies,
talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B)
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 (B) 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 (B) can be done for the following purposes –
1. Strategic planning using facts provided in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) 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 (B) | 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 (B) Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) firm has clearly differentiated products in the market place. This has enabled Nutrasweet Sweetener to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Nutrasweet Sweetener to invest into research and development (R&D) and innovation.
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 (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Nutrasweet Sweetener 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 Adam Brandenburger, Maryellen Costello, Julia Kou 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.
Ability to lead change in Strategy & Execution field
– Nutrasweet Sweetener 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 Nutrasweet Sweetener in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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 (B) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
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.
Superior customer experience
– The customer experience strategy of Nutrasweet Sweetener in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Nutrasweet Sweetener 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.
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.
Low bargaining power of suppliers
– Suppliers of Nutrasweet Sweetener in the sector have low bargaining power. Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nutrasweet Sweetener to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
Weaknesses Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) | 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 (B) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B), 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.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) 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 Nutrasweet Sweetener 's lucrative customers.
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 (B), 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.
Aligning sales with marketing
– It come across in the case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) 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 (B) can leverage the sales team experience to cultivate customer relationships as Nutrasweet Sweetener is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Adam Brandenburger, Maryellen Costello, Julia Kou suggests that, Nutrasweet Sweetener 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.
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 (B) should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B), in the dynamic environment Nutrasweet Sweetener has struggled to respond to the nimble upstart competition. Nutrasweet Sweetener has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
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.
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.
Opportunities Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) are -
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.
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.
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.
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 Nutrasweet Sweetener 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.
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.
Manufacturing automation
– Nutrasweet Sweetener can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Nutrasweet Sweetener in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution 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 Strategy & Execution industry, but it has also influenced the consumer preferences. Nutrasweet Sweetener can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nutrasweet Sweetener is facing challenges because of the dominance of functional experts in the organization. Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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 (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Nutrasweet Sweetener 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nutrasweet Sweetener to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) 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 (B) are -
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.
Regulatory challenges
– Nutrasweet Sweetener 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 Strategy & Execution industry regulations.
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.
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.
Consumer confidence and its impact on Nutrasweet Sweetener 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.
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.
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.
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.
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.
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.
Increasing wage structure of Nutrasweet Sweetener
– 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 Nutrasweet Sweetener.
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.
Shortening product life cycle
– it is one of the major threat that Nutrasweet Sweetener is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (B) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Nutrasweet Sweetener needs to make to build a sustainable competitive advantage.
