Disposable Diaper Industry in 1974 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Disposable Diaper Industry in 1974
Describes the rapidly growing disposable diaper industry in 1974, a period in which Procter and Gamble's industry leadership faced strong challenges from Kimberly Clark, Johnson and Johnson, and Union Carbide. The latter two firms were in the process of entry into the industry. Focuses on the decision to enter the business, the barriers to entry, and the optimal reaction of going firms, in this case Procter and Gamble, to deter or impede entry. Software for this note is available (9-388-504).
Swot Analysis of "Disposable Diaper Industry in 1974" written by Michael E. Porter includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Diaper 1974 facing as an external strategic factors. Some of the topics covered in Disposable Diaper Industry in 1974 case study are - Strategic Management Strategies, Marketing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Disposable Diaper Industry in 1974 casestudy better are - – increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, there is backlash against globalization, challanges to central banks by blockchain based private currencies, geopolitical disruptions,
technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Disposable Diaper Industry in 1974
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Disposable Diaper Industry in 1974 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Diaper 1974, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Diaper 1974 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 Disposable Diaper Industry in 1974 can be done for the following purposes –
1. Strategic planning using facts provided in Disposable Diaper Industry in 1974 case study
2. Improving business portfolio management of Diaper 1974
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 Diaper 1974
Strengths Disposable Diaper Industry in 1974 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Diaper 1974 in Disposable Diaper Industry in 1974 Harvard Business Review case study are -
Learning organization
- Diaper 1974 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 Diaper 1974 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Disposable Diaper Industry in 1974 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Diaper 1974 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Diaper 1974 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.
Effective Research and Development (R&D)
– Diaper 1974 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 Disposable Diaper Industry in 1974 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Diaper 1974 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Diaper 1974 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Diaper 1974
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Diaper 1974 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Diaper 1974 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Disposable Diaper Industry in 1974 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.
Innovation driven organization
– Diaper 1974 is one of the most innovative firm in sector. Manager in Disposable Diaper Industry in 1974 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 Diaper 1974 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Diaper 1974 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.
Diverse revenue streams
– Diaper 1974 is present in almost all the verticals within the industry. This has provided firm in Disposable Diaper Industry in 1974 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.
Low bargaining power of suppliers
– Suppliers of Diaper 1974 in the sector have low bargaining power. Disposable Diaper Industry in 1974 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Diaper 1974 to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Diaper 1974 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.
Analytics focus
– Diaper 1974 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 Michael E. Porter 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.
Weaknesses Disposable Diaper Industry in 1974 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Disposable Diaper Industry in 1974 are -
Skills based hiring
– The stress on hiring functional specialists at Diaper 1974 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.
Low market penetration in new markets
– Outside its home market of Diaper 1974, firm in the HBR case study Disposable Diaper Industry in 1974 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Michael E. Porter suggests that, Diaper 1974 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 Disposable Diaper Industry in 1974, 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Disposable Diaper Industry in 1974, in the dynamic environment Diaper 1974 has struggled to respond to the nimble upstart competition. Diaper 1974 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Diaper 1974 is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Diaper 1974 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Diaper 1974 to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Disposable Diaper Industry in 1974 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 Disposable Diaper Industry in 1974 can leverage the sales team experience to cultivate customer relationships as Diaper 1974 is planning to shift buying processes online.
Lack of clear differentiation of Diaper 1974 products
– To increase the profitability and margins on the products, Diaper 1974 needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Disposable Diaper Industry in 1974 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 Diaper 1974 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Diaper 1974 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Disposable Diaper Industry in 1974, is just above the industry average. Diaper 1974 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 Disposable Diaper Industry in 1974 | 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 Disposable Diaper Industry in 1974 are -
Buying journey improvements
– Diaper 1974 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Disposable Diaper Industry in 1974 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Diaper 1974 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.
Better consumer reach
– The expansion of the 5G network will help Diaper 1974 to increase its market reach. Diaper 1974 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Diaper 1974 can use these opportunities to build new business models that can help the communities that Diaper 1974 operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Diaper 1974 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. Diaper 1974 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Diaper 1974 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, Disposable Diaper Industry in 1974, 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 Diaper 1974 has opened avenues for new revenue streams for the organization in the industry. This can help Diaper 1974 to build a more holistic ecosystem as suggested in the Disposable Diaper Industry in 1974 case study. Diaper 1974 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Diaper 1974 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.
Leveraging digital technologies
– Diaper 1974 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Diaper 1974 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Diaper 1974 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Diaper 1974 is facing challenges because of the dominance of functional experts in the organization. Disposable Diaper Industry in 1974 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.
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 Diaper 1974 in the consumer business. Now Diaper 1974 can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Disposable Diaper Industry in 1974 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Disposable Diaper Industry in 1974 are -
Regulatory challenges
– Diaper 1974 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Disposable Diaper Industry in 1974, Diaper 1974 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Diaper 1974 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Diaper 1974 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Diaper 1974 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. Diaper 1974 can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Diaper 1974 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, Diaper 1974 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 Disposable Diaper Industry in 1974 .
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 Diaper 1974 business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Diaper 1974 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.
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 Diaper 1974.
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.
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 Diaper 1974 in the Strategy & Execution sector and impact the bottomline of the organization.
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. Diaper 1974 needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Disposable Diaper Industry in 1974 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 Disposable Diaper Industry in 1974 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 Disposable Diaper Industry in 1974 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 Disposable Diaper Industry in 1974 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 Disposable Diaper Industry in 1974 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 Diaper 1974 needs to make to build a sustainable competitive advantage.
