Bimbo Group and Papalote Museo del Nino, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Bimbo Group and Papalote Museo del Nino, Spanish Version
In the early 1990s, the Mexican Grupo Bimbo was a leader in the world food industry, operating in 16 countries. In November 1993, Papalote Children's Museum (Papalote Museo del Nino) was created in Mexico City. This civil society organization intended to contribute to children's intellectual and emotional development through interactive and educational games and experiments. Shortly after its creation, the museum entered into a collaborative agreement with Bimbo, and the company agreed to sponsor several exhibitions in exchange for brand exposure on museum premises. Eventually, both parties jointly developed new activities such as the Public School Sponsoring Program, which covered the expenses for low-income children's visits to Papalote Children's Museum. Through sponsorships, the company contributed to several museum programs, such as the "Mobile Papalote"--a traveling version of the museum touring other regions in the country.
Authors :: Carlos Romero, Angel Maass
Topics :: Strategy & Execution
Tags :: Generational issues, Joint ventures, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Bimbo Group and Papalote Museo del Nino, Spanish Version" written by Carlos Romero, Angel Maass includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Papalote Museum facing as an external strategic factors. Some of the topics covered in Bimbo Group and Papalote Museo del Nino, Spanish Version case study are - Strategic Management Strategies, Generational issues, Joint ventures, Social enterprise, Social responsibility and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Bimbo Group and Papalote Museo del Nino, Spanish Version casestudy better are - – technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , there is backlash against globalization,
cloud computing is disrupting traditional business models, increasing energy prices, etc
Introduction to SWOT Analysis of Bimbo Group and Papalote Museo del Nino, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bimbo Group and Papalote Museo del Nino, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Papalote Museum, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Papalote Museum 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 Bimbo Group and Papalote Museo del Nino, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Bimbo Group and Papalote Museo del Nino, Spanish Version case study
2. Improving business portfolio management of Papalote Museum
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 Papalote Museum
Strengths Bimbo Group and Papalote Museo del Nino, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Papalote Museum in Bimbo Group and Papalote Museo del Nino, Spanish Version Harvard Business Review case study are -
Strong track record of project management
– Papalote Museum is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Bimbo Group and Papalote Museo del Nino, Spanish Version firm has clearly differentiated products in the market place. This has enabled Papalote Museum to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Papalote Museum to invest into research and development (R&D) and innovation.
Ability to lead change in Strategy & Execution field
– Papalote Museum 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 Papalote Museum in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Papalote Museum has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Bimbo Group and Papalote Museo del Nino, Spanish Version 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.
Diverse revenue streams
– Papalote Museum is present in almost all the verticals within the industry. This has provided firm in Bimbo Group and Papalote Museo del Nino, Spanish Version 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.
High switching costs
– The high switching costs that Papalote Museum 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 Papalote Museum 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.
Operational resilience
– The operational resilience strategy in the Bimbo Group and Papalote Museo del Nino, Spanish Version 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.
Low bargaining power of suppliers
– Suppliers of Papalote Museum in the sector have low bargaining power. Bimbo Group and Papalote Museo del Nino, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Papalote Museum to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Papalote Museum 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 Bimbo Group and Papalote Museo del Nino, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Papalote Museum 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 Papalote Museum is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Bimbo Group and Papalote Museo del Nino, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Papalote Museum has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Papalote Museum 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.
Weaknesses Bimbo Group and Papalote Museo del Nino, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bimbo Group and Papalote Museo del Nino, Spanish Version are -
High bargaining power of channel partners
– Because of the regulatory requirements, Carlos Romero, Angel Maass suggests that, Papalote Museum 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.
Slow to strategic competitive environment developments
– As Bimbo Group and Papalote Museo del Nino, Spanish Version HBR case study mentions - Papalote Museum takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Low market penetration in new markets
– Outside its home market of Papalote Museum, firm in the HBR case study Bimbo Group and Papalote Museo del Nino, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Papalote Museum has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High operating costs
– Compare to the competitors, firm in the HBR case study Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Papalote Museum 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Papalote Museum has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High 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 Papalote Museum supply chain. Even after few cautionary changes mentioned in the HBR case study - Bimbo Group and Papalote Museo del Nino, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Papalote Museum vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Bimbo Group and Papalote Museo del Nino, Spanish Version, is just above the industry average. Papalote Museum 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 Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Bimbo Group and Papalote Museo del Nino, Spanish Version can leverage the sales team experience to cultivate customer relationships as Papalote Museum is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Bimbo Group and Papalote Museo del Nino, Spanish Version, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Bimbo Group and Papalote Museo del Nino, Spanish Version HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Papalote Museum has relatively successful track record of launching new products.
Opportunities Bimbo Group and Papalote Museo del Nino, Spanish Version | 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 Bimbo Group and Papalote Museo del Nino, Spanish Version are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Papalote Museum can use these opportunities to build new business models that can help the communities that Papalote Museum operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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 Papalote Museum 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.
Better consumer reach
– The expansion of the 5G network will help Papalote Museum to increase its market reach. Papalote Museum 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Papalote Museum 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.
Manufacturing automation
– Papalote Museum 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.
Creating value in data economy
– The success of analytics program of Papalote Museum has opened avenues for new revenue streams for the organization in the industry. This can help Papalote Museum to build a more holistic ecosystem as suggested in the Bimbo Group and Papalote Museo del Nino, Spanish Version case study. Papalote Museum can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Papalote Museum can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Bimbo Group and Papalote Museo del Nino, Spanish Version 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.
Learning at scale
– Online learning technologies has now opened space for Papalote Museum 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.
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. Papalote Museum 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 Papalote Museum can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Papalote Museum 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.
Building a culture of innovation
– managers at Papalote Museum 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.
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. Papalote Museum can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Bimbo Group and Papalote Museo del Nino, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bimbo Group and Papalote Museo del Nino, Spanish Version are -
Technology acceleration in Forth Industrial Revolution
– Papalote Museum has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Papalote Museum 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.
Stagnating economy with rate increase
– Papalote Museum 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Papalote Museum 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Bimbo Group and Papalote Museo del Nino, Spanish Version, Papalote Museum 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 .
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.
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. Papalote Museum needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Regulatory challenges
– Papalote Museum 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.
Environmental challenges
– Papalote Museum 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. Papalote Museum can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Papalote Museum 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 Bimbo Group and Papalote Museo del Nino, Spanish Version .
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 Papalote Museum in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Papalote Museum is facing in Strategy & Execution 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 Papalote Museum with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Papalote Museum.
Weighted SWOT Analysis of Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Papalote Museum needs to make to build a sustainable competitive advantage.
