Swot Analysis of "Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version" 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 (F), Spanish Version 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 (F), Spanish Version casestudy better are - – challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, there is increasing trade war between United States & China, geopolitical disruptions, cloud computing is disrupting traditional business models, wage bills are increasing,
increasing government debt because of Covid-19 spendings, increasing energy prices, etc
Introduction to SWOT Analysis of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version
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 (F), Spanish Version 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 (F), Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version 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 (F), Spanish Version | 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 (F), Spanish Version Harvard Business Review case study are -
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.
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.
Operational resilience
– The operational resilience strategy in the Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to lead change in Strategy & Execution field
– Nutrasweet Sweetener 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 Nutrasweet Sweetener in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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 (F), Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Nutrasweet Sweetener 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 Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Nutrasweet Sweetener 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.
High switching costs
– The high switching costs that Nutrasweet Sweetener has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
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.
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 (F), Spanish Version case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High 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.
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.
Weaknesses Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version | 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 (F), Spanish Version are -
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 (F), Spanish Version, 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.
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.
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 (F), Spanish Version HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Nutrasweet Sweetener has relatively successful track record of launching new products.
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.
Products dominated business model
– Even though Nutrasweet Sweetener has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version should strive to include more intangible value offerings along with its core products and services.
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.
Aligning sales with marketing
– It come across in the case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version can leverage the sales team experience to cultivate customer relationships as Nutrasweet Sweetener is planning to shift buying processes online.
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 (F), Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Nutrasweet Sweetener 's lucrative 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.
Opportunities Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version are -
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.
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.
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.
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 (F), Spanish Version suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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.
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 (F), Spanish Version - 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.
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 (F), Spanish Version 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.
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.
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 Nutrasweet Sweetener to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Better consumer reach
– The expansion of the 5G network will help 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.
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.
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.
Threats Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version are -
Increasing wage structure of Nutrasweet Sweetener
– 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 Nutrasweet Sweetener.
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.
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 Nutrasweet Sweetener in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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 Nutrasweet Sweetener.
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 (F), Spanish Version .
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.
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.
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.
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.
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.
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.
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.
Weighted SWOT Analysis of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (F), Spanish Version is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Nutrasweet Sweetener needs to make to build a sustainable competitive advantage.
