Swot Analysis of "Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A)" 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 the Philippines (A) 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 the Philippines (A) casestudy better are - – there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation,
increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A)
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 the Philippines (A) 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 the Philippines (A) 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 the Philippines (A) 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 the Philippines (A) | 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 the Philippines (A) Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A) 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.
Analytics focus
– Tea C2 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 Roberto Galang can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High brand equity
– Tea C2 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tea C2 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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.
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.
High switching costs
– The high switching costs that Tea C2 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.
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 the Philippines (A) 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.
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.
Ability to recruit top talent
– Tea C2 is one of the leading recruiters in the industry. Managers in the Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A) 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
– 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 the Philippines (A) 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.
Weaknesses Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A) | 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 the Philippines (A) are -
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 the Philippines (A) 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.
Increasing silos among functional specialists
– The organizational structure of Tea C2 is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Tea C2 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tea C2 to focus more on services rather than just following the product oriented approach.
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.
Skills based hiring
– The stress on hiring functional specialists at Tea C2 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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Tea C2 supply chain. Even after few cautionary changes mentioned in the HBR case study - Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tea C2 vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Tea C2 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.
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 the Philippines (A) should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Tea C2 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.
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 the Philippines (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A), is just above the industry average. Tea C2 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.
Slow to strategic competitive environment developments
– As Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A) HBR case study mentions - Tea C2 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.
Opportunities Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A) | 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 the Philippines (A) are -
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. Tea C2 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
Building a culture of innovation
– managers at Tea C2 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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tea C2 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tea C2 can use these opportunities to build new business models that can help the communities that Tea C2 operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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.
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 the Philippines (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Leveraging digital technologies
– Tea C2 can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A) 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 the Philippines (A) are -
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.
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.
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. Tea C2 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Tea C2 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 Tea C2 in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Tea C2 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 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.
Consumer confidence and its impact on Tea C2 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.
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 the Philippines (A), 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 .
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tea C2 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 the Philippines (A) .
Weighted SWOT Analysis of Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A) 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 the Philippines (A) 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 the Philippines (A) 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 the Philippines (A) 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 the Philippines (A) 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.
