Swot Analysis of "Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C)" 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 (C) 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 (C) casestudy better are - – increasing government debt because of Covid-19 spendings, increasing energy prices, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies,
cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C)
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 (C) 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 (C) can be done for the following purposes –
1. Strategic planning using facts provided in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) 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 (C) | 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 (C) Harvard Business Review case study are -
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.
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.
Low bargaining power of suppliers
– Suppliers of Nutrasweet Sweetener in the sector have low bargaining power. Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) 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.
Training and development
– Nutrasweet Sweetener has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) 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.
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.
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.
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 (C) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Nutrasweet Sweetener is one of the most innovative firm in sector. Manager in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
Effective Research and Development (R&D)
– Nutrasweet Sweetener 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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 (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) | 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 (C) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C), 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 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) 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 Nutrasweet Sweetener has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Nutrasweet Sweetener, firm in the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nutrasweet Sweetener is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Nutrasweet Sweetener needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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 (C), 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.
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.
Opportunities Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) | 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 (C) are -
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.
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 (C) - 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.
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.
Loyalty marketing
– Nutrasweet Sweetener 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.
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 (C) 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.
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 (C) case study. Nutrasweet Sweetener can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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 (C) 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.
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.
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.
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.
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.
Leveraging digital technologies
– Nutrasweet Sweetener can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) 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 (C) are -
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 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nutrasweet Sweetener 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) .
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.
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.
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.
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.
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.
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 Nutrasweet Sweetener business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (C) 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 (C) 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 (C) 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 (C) 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 (C) 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.