AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale
AmBev, the merger of the two largest Brazilian beverage companies (Brahma and Antarctica) wants to become a strong South American multinational, able to compete with the main global players in this sector. AmBev creation process raised an important polemic. Competitors said AmBev would have a monopolistic power (controls about 70% of the Brazilian beer market). The Brazilian Government had to intervene and, finally, AmBev was authorized only with some minor restrictions.
Swot Analysis of "AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale" written by Lourdes Casanova, Fernando Rodrigues includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ambev Brazilian facing as an external strategic factors. Some of the topics covered in AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale case study are - Strategic Management Strategies, Mergers & acquisitions and Strategy & Execution.
Some of the macro environment factors that can be used to understand the AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale casestudy better are - – there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion,
supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ambev Brazilian, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ambev Brazilian 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 AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale can be done for the following purposes –
1. Strategic planning using facts provided in AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale case study
2. Improving business portfolio management of Ambev Brazilian
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 Ambev Brazilian
Strengths AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ambev Brazilian in AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale 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.
Training and development
– Ambev Brazilian has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Ambev Brazilian digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ambev Brazilian 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.
Ability to recruit top talent
– Ambev Brazilian is one of the leading recruiters in the industry. Managers in the AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Ambev Brazilian is present in almost all the verticals within the industry. This has provided firm in AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale 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.
Successful track record of launching new products
– Ambev Brazilian has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ambev Brazilian 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 lead change in Strategy & Execution field
– Ambev Brazilian 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 Ambev Brazilian in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Ambev Brazilian are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Innovation driven organization
– Ambev Brazilian is one of the most innovative firm in sector. Manager in AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Ambev Brazilian has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Ambev Brazilian in the sector have low bargaining power. AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ambev Brazilian to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Ambev Brazilian 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 AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale are -
Capital Spending Reduction
– Even during the low interest decade, Ambev Brazilian 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.
Slow decision making process
– As mentioned earlier in the report, Ambev Brazilian has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Ambev Brazilian even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Low market penetration in new markets
– Outside its home market of Ambev Brazilian, firm in the HBR case study AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Ambev Brazilian 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.
Skills based hiring
– The stress on hiring functional specialists at Ambev Brazilian 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.
Slow to strategic competitive environment developments
– As AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale HBR case study mentions - Ambev Brazilian 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ambev Brazilian is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Ambev Brazilian 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale 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 Ambev Brazilian has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale, it seems that the employees of Ambev Brazilian don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale, in the dynamic environment Ambev Brazilian has struggled to respond to the nimble upstart competition. Ambev Brazilian has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale | 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 AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ambev Brazilian can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Ambev Brazilian 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.
Creating value in data economy
– The success of analytics program of Ambev Brazilian has opened avenues for new revenue streams for the organization in the industry. This can help Ambev Brazilian to build a more holistic ecosystem as suggested in the AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale case study. Ambev Brazilian can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Ambev Brazilian can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ambev Brazilian is facing challenges because of the dominance of functional experts in the organization. AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale 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.
Leveraging digital technologies
– Ambev Brazilian 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.
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. Ambev Brazilian can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Ambev Brazilian can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ambev Brazilian can use these opportunities to build new business models that can help the communities that Ambev Brazilian operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Developing new processes and practices
– Ambev Brazilian 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ambev Brazilian 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 Ambev Brazilian to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Ambev Brazilian 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.
Manufacturing automation
– Ambev Brazilian 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.
Threats AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale are -
Regulatory challenges
– Ambev Brazilian 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.
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. Ambev Brazilian needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale, Ambev Brazilian 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 .
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. Ambev Brazilian can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Ambev Brazilian
– 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 Ambev Brazilian.
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 Ambev Brazilian business can come under increasing regulations regarding data privacy, data security, etc.
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 Ambev Brazilian in the Strategy & Execution sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ambev Brazilian with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Ambev Brazilian will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Shortening product life cycle
– it is one of the major threat that Ambev Brazilian is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ambev Brazilian 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.
Weighted SWOT Analysis of AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale 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 AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale 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 AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale 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 AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale 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 AmBev, The Dream Project (A): A Brazilian-Based Multinational Beverage Company with Global Scale 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 Ambev Brazilian needs to make to build a sustainable competitive advantage.
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