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 - – customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, supply chains are disrupted by pandemic , geopolitical disruptions, increasing energy prices,
challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, 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 -
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 the Philippines (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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 the Philippines (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
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 the Philippines (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
Training and development
– Tea C2 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A) 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.
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Tea C2 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.
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 operating costs
– Compare to the competitors, firm in the HBR case study Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A) 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.
Capital Spending Reduction
– Even during the low interest decade, Tea C2 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 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.
Lack of clear differentiation of Tea C2 products
– To increase the profitability and margins on the products, Tea C2 needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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 the Philippines (A), 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.
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 the Philippines (A), 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.
Low market penetration in new markets
– Outside its home market of Tea C2, firm in the HBR case study Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
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 -
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.
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.
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.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tea C2 is facing challenges because of the dominance of functional experts in the organization. Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in the Philippines (A) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tea C2 in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
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.
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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tea C2 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.
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 -
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.
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.
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 .
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.
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.
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.
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.
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.
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) .
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.
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.
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.
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.
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.