Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry
This series of three cases shows how a newly appointed manager, with support of the parent company helps an MNC in the dairy industry renew and strengthen its leadership. The MNC becomes more market responsive and less fragmented A specific re-engineering project increases rationalization and product standardization The company launches a revolutionary product to regain true technological advantage.
Swot Analysis of "Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry" written by Yves L. Doz, Marie-Aude Dalsace includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mnc Dairy facing as an external strategic factors. Some of the topics covered in Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry case study are - Strategic Management Strategies, Leadership and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion,
challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mnc Dairy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mnc Dairy 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 Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry can be done for the following purposes –
1. Strategic planning using facts provided in Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry case study
2. Improving business portfolio management of Mnc Dairy
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 Mnc Dairy
Strengths Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mnc Dairy in Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry Harvard Business Review case study are -
Training and development
– Mnc Dairy has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry 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.
Innovation driven organization
– Mnc Dairy is one of the most innovative firm in sector. Manager in Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Mnc Dairy is present in almost all the verticals within the industry. This has provided firm in Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Mnc Dairy digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mnc Dairy 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
– Mnc Dairy has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mnc Dairy to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Mnc Dairy has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mnc Dairy 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.
Ability to recruit top talent
– Mnc Dairy is one of the leading recruiters in the industry. Managers in the Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Strategy & Execution field
– Mnc Dairy 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 Mnc Dairy in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Strategy & Execution industry
– Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry firm has clearly differentiated products in the market place. This has enabled Mnc Dairy to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Mnc Dairy to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Mnc Dairy in the sector have low bargaining power. Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mnc Dairy to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Mnc Dairy in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Mnc Dairy
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mnc Dairy does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mnc Dairy is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry, in the dynamic environment Mnc Dairy has struggled to respond to the nimble upstart competition. Mnc Dairy 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, Yves L. Doz, Marie-Aude Dalsace suggests that, Mnc Dairy 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.
Low market penetration in new markets
– Outside its home market of Mnc Dairy, firm in the HBR case study Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Mnc Dairy 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.
No frontier risks strategy
– After analyzing the HBR case study Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry, 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 cash cycle compare to competitors
Mnc Dairy 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.
Interest costs
– Compare to the competition, Mnc Dairy 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 strategic competitive environment developments
– As Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry HBR case study mentions - Mnc Dairy 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.
Increasing silos among functional specialists
– The organizational structure of Mnc Dairy is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Mnc Dairy needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mnc Dairy to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry 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 Mnc Dairy has relatively successful track record of launching new products.
Opportunities Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry | 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 Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry are -
Building a culture of innovation
– managers at Mnc Dairy 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.
Using analytics as competitive advantage
– Mnc Dairy 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 Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mnc Dairy to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mnc Dairy 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
– Mnc Dairy 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.
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. Mnc Dairy 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. Mnc Dairy 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mnc Dairy can use these opportunities to build new business models that can help the communities that Mnc Dairy operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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 Mnc Dairy in the consumer business. Now Mnc Dairy can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mnc Dairy 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, Mnc Dairy is facing challenges because of the dominance of functional experts in the organization. Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mnc Dairy 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.
Learning at scale
– Online learning technologies has now opened space for Mnc Dairy 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.
Better consumer reach
– The expansion of the 5G network will help Mnc Dairy to increase its market reach. Mnc Dairy 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.
Creating value in data economy
– The success of analytics program of Mnc Dairy has opened avenues for new revenue streams for the organization in the industry. This can help Mnc Dairy to build a more holistic ecosystem as suggested in the Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry case study. Mnc Dairy can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry are -
Regulatory challenges
– Mnc Dairy 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.
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 Mnc Dairy business can come under increasing regulations regarding data privacy, data security, etc.
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 Mnc Dairy.
Increasing wage structure of Mnc Dairy
– 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 Mnc Dairy.
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 Mnc Dairy in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Mnc Dairy 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mnc Dairy 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 Alfa Laval Agri (A): Keeping Leadership in the Dairy 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. Mnc Dairy needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Mnc Dairy is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Mnc Dairy 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 Mnc Dairy 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.
Technology acceleration in Forth Industrial Revolution
– Mnc Dairy has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Mnc Dairy 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.
Environmental challenges
– Mnc Dairy 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. Mnc Dairy can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry 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 Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry 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 Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry 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 Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry 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 Alfa Laval Agri (A): Keeping Leadership in the Dairy Industry 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 Mnc Dairy needs to make to build a sustainable competitive advantage.
