Swot Analysis of "Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C)" written by Roberto Galang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tea C2 facing as an external strategic factors. Some of the topics covered in Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) case study are - Strategic Management Strategies, Emerging markets, Growth strategy, IT, Sales and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) casestudy better are - – there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, increasing commodity prices, increasing transportation and logistics costs, supply chains are disrupted by pandemic , geopolitical disruptions, increasing energy prices,
technology disruption, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tea C2, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tea C2 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 Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) can be done for the following purposes –
1. Strategic planning using facts provided in Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) case study
2. Improving business portfolio management of Tea C2
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 Tea C2
Strengths Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tea C2 in Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Tea C2 in the sector have low bargaining power. Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tea C2 to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Tea C2 is present in almost all the verticals within the industry. This has provided firm in Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) 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.
Highly skilled collaborators
– Tea C2 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 Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Tea C2 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tea C2 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
– Tea C2 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 Tea C2 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Tea C2 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tea C2 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.
Innovation driven organization
– Tea C2 is one of the most innovative firm in sector. Manager in Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Tea C2 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 Tea C2 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Tea C2 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
– Tea C2 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Tea C2 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 Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (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.
Organizational Resilience of Tea C2
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tea C2 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) are -
High bargaining power of channel partners
– Because of the regulatory requirements, Roberto Galang suggests that, Tea C2 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C), it seems that the employees of Tea C2 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Tea C2 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (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 Tea C2 has relatively successful track record of launching new products.
Products dominated business model
– Even though Tea C2 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 - Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C), in the dynamic environment Tea C2 has struggled to respond to the nimble upstart competition. Tea C2 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tea C2 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (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.
No frontier risks strategy
– After analyzing the HBR case study Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C), it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High cash cycle compare to competitors
Tea C2 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) 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 Tea C2 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Tea C2 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. Tea C2 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.
Opportunities Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (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 Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) are -
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. Tea C2 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Tea C2 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.
Buying journey improvements
– Tea C2 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (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.
Using analytics as competitive advantage
– Tea C2 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 Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tea C2 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Tea C2 in the consumer business. Now Tea C2 can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Tea C2 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.
Better consumer reach
– The expansion of the 5G network will help Tea C2 to increase its market reach. Tea C2 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tea C2 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 Tea C2 to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Tea C2 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tea C2 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, Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Tea C2 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.
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. Tea C2 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. Tea C2 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.
Creating value in data economy
– The success of analytics program of Tea C2 has opened avenues for new revenue streams for the organization in the industry. This can help Tea C2 to build a more holistic ecosystem as suggested in the Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) case study. Tea C2 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tea C2 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.
Shortening product life cycle
– it is one of the major threat that Tea C2 is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C), Tea C2 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tea C2 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 Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (C) .
Increasing wage structure of Tea C2
– 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 Tea C2.
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. Tea C2 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.
High dependence on third party suppliers
– Tea C2 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.
Environmental challenges
– Tea C2 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. Tea C2 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 Tea C2 in the Strategy & Execution sector and impact the bottomline 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.
Technology acceleration in Forth Industrial Revolution
– Tea C2 has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Tea C2 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.
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. Tea C2 needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Tea C2.
Weighted SWOT Analysis of Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (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 Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (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 Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (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 Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (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 Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Indonesia (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 Tea C2 needs to make to build a sustainable competitive advantage.