Should Ranbaxy Launch an Energy Candy in India? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Should Ranbaxy Launch an Energy Candy in India?
This case chronicles the growth and evolution of Revital, the bestselling vitamin and mineral supplement in India. The Indian nutraceutical market was booming, as the growing economy and increasingly demanding job requirements were pushing young Indian consumers to look for products like energy drinks, energy candy and health supplements. Stressful work conditions and lifestyle changes were resulting in an increased incidence of chronic disorders, and more and more consumers were taking nutraceuticals as a preventive measure. No company had launched an energy candy in the Indian market and imported brands were of limited availability. The case explores the possible options for Ranbaxy - one of the largest pharmaceutical companies in India -with brand expansion opportunities for Revital through introducing Revital energy candy. Should Ranbaxy introduce an energy candy in the Indian market? If so, should it be a brand extension of Revital or a new brand altogether? Authors Sandeep Puri, Subhajit Bhattacharya and Harsh Ajmera are affiliated with Institute of Management Technology
Swot Analysis of "Should Ranbaxy Launch an Energy Candy in India?" written by Sandeep Puri, Subhajit Bhattacharya, Harsh Ajmera includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Revital Candy facing as an external strategic factors. Some of the topics covered in Should Ranbaxy Launch an Energy Candy in India? case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Should Ranbaxy Launch an Energy Candy in India? casestudy better are - – increasing government debt because of Covid-19 spendings, technology disruption, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%,
increasing transportation and logistics costs, wage bills are increasing, etc
Introduction to SWOT Analysis of Should Ranbaxy Launch an Energy Candy in India?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Should Ranbaxy Launch an Energy Candy in India? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Revital Candy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Revital Candy 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 Should Ranbaxy Launch an Energy Candy in India? can be done for the following purposes –
1. Strategic planning using facts provided in Should Ranbaxy Launch an Energy Candy in India? case study
2. Improving business portfolio management of Revital Candy
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 Revital Candy
Strengths Should Ranbaxy Launch an Energy Candy in India? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Revital Candy in Should Ranbaxy Launch an Energy Candy in India? Harvard Business Review case study are -
Training and development
– Revital Candy has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Should Ranbaxy Launch an Energy Candy in India? 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.
Superior customer experience
– The customer experience strategy of Revital Candy 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
– Revital Candy 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 brand equity
– Revital Candy has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Revital Candy to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Revital Candy 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 Sandeep Puri, Subhajit Bhattacharya, Harsh Ajmera 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 switching costs
– The high switching costs that Revital Candy 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 Revital Candy in the sector have low bargaining power. Should Ranbaxy Launch an Energy Candy in India? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Revital Candy to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Revital Candy has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Revital Candy 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.
Operational resilience
– The operational resilience strategy in the Should Ranbaxy Launch an Energy Candy in India? 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 Revital Candy 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.
Organizational Resilience of Revital Candy
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Revital Candy does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Revital Candy 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 Should Ranbaxy Launch an Energy Candy in India? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Should Ranbaxy Launch an Energy Candy in India? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Should Ranbaxy Launch an Energy Candy in India? are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Should Ranbaxy Launch an Energy Candy in India? 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 Revital Candy has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Revital Candy is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Should Ranbaxy Launch an Energy Candy in India? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Should Ranbaxy Launch an Energy Candy in India? that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Should Ranbaxy Launch an Energy Candy in India? can leverage the sales team experience to cultivate customer relationships as Revital Candy is planning to shift buying processes online.
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 Revital Candy supply chain. Even after few cautionary changes mentioned in the HBR case study - Should Ranbaxy Launch an Energy Candy in India?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Revital Candy vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Revital Candy is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Revital Candy needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Revital Candy to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Revital Candy, firm in the HBR case study Should Ranbaxy Launch an Energy Candy in India? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Sandeep Puri, Subhajit Bhattacharya, Harsh Ajmera suggests that, Revital Candy 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.
No frontier risks strategy
– After analyzing the HBR case study Should Ranbaxy Launch an Energy Candy in India?, 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.
Need for greater diversity
– Revital Candy 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.
Interest costs
– Compare to the competition, Revital Candy 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.
Skills based hiring
– The stress on hiring functional specialists at Revital Candy 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.
Opportunities Should Ranbaxy Launch an Energy Candy in India? | 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 Should Ranbaxy Launch an Energy Candy in India? are -
Better consumer reach
– The expansion of the 5G network will help Revital Candy to increase its market reach. Revital Candy 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, Revital Candy 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, Should Ranbaxy Launch an Energy Candy in India?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Revital Candy is facing challenges because of the dominance of functional experts in the organization. Should Ranbaxy Launch an Energy Candy in India? 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.
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 Revital Candy 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.
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. Revital Candy can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Revital Candy 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. Revital Candy 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.
Buying journey improvements
– Revital Candy can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Should Ranbaxy Launch an Energy Candy in India? 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Revital Candy 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Revital Candy 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.
Creating value in data economy
– The success of analytics program of Revital Candy has opened avenues for new revenue streams for the organization in the industry. This can help Revital Candy to build a more holistic ecosystem as suggested in the Should Ranbaxy Launch an Energy Candy in India? case study. Revital Candy can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Revital Candy has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Learning at scale
– Online learning technologies has now opened space for Revital Candy 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 Revital Candy in the consumer business. Now Revital Candy can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Should Ranbaxy Launch an Energy Candy in India? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Should Ranbaxy Launch an Energy Candy in India? are -
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 Revital Candy.
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. Revital Candy 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.
Environmental challenges
– Revital Candy 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. Revital Candy can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Regulatory challenges
– Revital Candy 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.
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 Revital Candy in the Strategy & Execution sector and impact the bottomline 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 Revital Candy business can come under increasing regulations regarding data privacy, data security, etc.
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. Revital Candy needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Should Ranbaxy Launch an Energy Candy in India?, Revital Candy 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 .
Stagnating economy with rate increase
– Revital Candy can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Revital Candy 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 Should Ranbaxy Launch an Energy Candy in India? .
Technology acceleration in Forth Industrial Revolution
– Revital Candy has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Revital Candy 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.
Shortening product life cycle
– it is one of the major threat that Revital Candy 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 Revital Candy 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.
Weighted SWOT Analysis of Should Ranbaxy Launch an Energy Candy in India? 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 Should Ranbaxy Launch an Energy Candy in India? 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 Should Ranbaxy Launch an Energy Candy in India? 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 Should Ranbaxy Launch an Energy Candy in India? 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 Should Ranbaxy Launch an Energy Candy in India? 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 Revital Candy needs to make to build a sustainable competitive advantage.
