Swot Analysis of "Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G)" 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 (G) 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 (G) casestudy better are - – geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models,
technology disruption, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G)
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 (G) 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 (G) can be done for the following purposes –
1. Strategic planning using facts provided in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) 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 (G) | 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 (G) Harvard Business Review case study are -
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 (G) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) firm has clearly differentiated products in the market place. This has enabled Nutrasweet Sweetener to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Nutrasweet Sweetener to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Nutrasweet Sweetener is present in almost all the verticals within the industry. This has provided firm in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) 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.
Operational resilience
– The operational resilience strategy in the Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) 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 Nutrasweet Sweetener in the sector have low bargaining power. Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) 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.
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.
Organizational Resilience of Nutrasweet Sweetener
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Nutrasweet Sweetener does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Nutrasweet Sweetener has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nutrasweet Sweetener to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
Innovation driven organization
– Nutrasweet Sweetener is one of the most innovative firm in sector. Manager in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Nutrasweet Sweetener digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nutrasweet Sweetener 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.
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 (G) 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.
Weaknesses Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) | 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 (G) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G), 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G), it seems that the employees of Nutrasweet Sweetener 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.
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.
Slow decision making process
– As mentioned earlier in the report, Nutrasweet Sweetener 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. Nutrasweet Sweetener 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.
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.
High cash cycle compare to competitors
Nutrasweet Sweetener has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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 (G) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
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 (G) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
No frontier risks strategy
– After analyzing the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G), 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.
Opportunities Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) | 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 (G) are -
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.
Building a culture of innovation
– managers at Nutrasweet Sweetener 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. Nutrasweet Sweetener can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 (G) - 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.
Developing new processes and practices
– Nutrasweet Sweetener can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nutrasweet Sweetener can use these opportunities to build new business models that can help the communities that Nutrasweet Sweetener 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 Nutrasweet Sweetener in the consumer business. Now Nutrasweet Sweetener can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Nutrasweet Sweetener 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.
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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nutrasweet Sweetener can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) 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 (G) are -
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G), Nutrasweet Sweetener 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 .
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.
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.
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.
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.
Shortening product life cycle
– it is one of the major threat that Nutrasweet Sweetener is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Nutrasweet Sweetener 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.
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. Nutrasweet Sweetener needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
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.
Weighted SWOT Analysis of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) 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 (G) 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 (G) 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 (G) 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 (G) 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.