Swot Analysis of "Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Vietnam (B)" 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 Vietnam (B) 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 Vietnam (B) casestudy better are - – increasing government debt because of Covid-19 spendings, wage bills are increasing, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models,
increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, etc
Introduction to SWOT Analysis of Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Vietnam (B)
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 Vietnam (B) 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 Vietnam (B) 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 Vietnam (B) 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 Vietnam (B) | 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 Vietnam (B) Harvard Business Review case study are -
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.
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 Vietnam (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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 Vietnam (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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 Vietnam (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For 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.
Operational resilience
– The operational resilience strategy in the Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Vietnam (B) 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.
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.
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.
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.
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 Vietnam (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Vietnam (B) | 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 Vietnam (B) are -
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 operating costs
– Compare to the competitors, firm in the HBR case study Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Vietnam (B) 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.
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 Vietnam (B), 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.
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 Vietnam (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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 Vietnam (B) should strive to include more intangible value offerings along with its core products and services.
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 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 Vietnam (B) 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.
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.
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.
Opportunities Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Vietnam (B) | 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 Vietnam (B) are -
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.
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 Vietnam (B) - 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.
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.
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.
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.
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.
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.
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.
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 Vietnam (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Vietnam (B) case study. Tea C2 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Vietnam (B) 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 Vietnam (B) are -
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 Vietnam (B), 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 .
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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
Weighted SWOT Analysis of Selling Ready-to-Drink Tea in Southeast Asia: C2 Green Tea in Vietnam (B) 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 Vietnam (B) 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 Vietnam (B) 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 Vietnam (B) 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 Vietnam (B) 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.
