ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid
Supplement to case IN1236. With ChotuKool, an innovative cooler, Gopalan Sunderraman, Executive Vice President at Godrej & Boyce Manufacturing and his team were able to profitably address a need of bottom-of-the-pyramid consumers in rural India. Case A presents the challenge and the approach used (in-market research) to identify the need and design a solution. To ensure ChotuKool's go-to-market strategy is a success, G&B must get the finance model and distribution model right. Case B explains how G&B partnered with micro-finance institutions and empowerment initiatives targeting local women to address the finance and distribution model challenges. It also describes the non-financial impact that ChotuKool had on local entrepreneurs and consumers, as well as hinting at future avenues for growth.
Swot Analysis of "ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid" written by Philip Parker, Byron Ascott-Evans includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Chotukool Pyramid facing as an external strategic factors. Some of the topics covered in ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid case study are - Strategic Management Strategies, Marketing, Social enterprise, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid casestudy better are - – increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion,
talent flight as more people leaving formal jobs, there is backlash against globalization, etc
Introduction to SWOT Analysis of ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chotukool Pyramid, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chotukool Pyramid 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 ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid can be done for the following purposes –
1. Strategic planning using facts provided in ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid case study
2. Improving business portfolio management of Chotukool Pyramid
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 Chotukool Pyramid
Strengths ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chotukool Pyramid in ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid Harvard Business Review case study are -
Successful track record of launching new products
– Chotukool Pyramid has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Chotukool Pyramid 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.
Cross disciplinary teams
– Horizontal connected teams at the Chotukool Pyramid 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.
Ability to recruit top talent
– Chotukool Pyramid is one of the leading recruiters in the industry. Managers in the ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Chotukool Pyramid in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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.
Training and development
– Chotukool Pyramid has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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.
Diverse revenue streams
– Chotukool Pyramid is present in almost all the verticals within the industry. This has provided firm in ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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.
Effective Research and Development (R&D)
– Chotukool Pyramid 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 ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Chotukool Pyramid is one of the most innovative firm in sector. Manager in ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Chotukool Pyramid in the sector have low bargaining power. ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chotukool Pyramid to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Chotukool Pyramid
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Chotukool Pyramid does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Chotukool Pyramid 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 ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid are -
Lack of clear differentiation of Chotukool Pyramid products
– To increase the profitability and margins on the products, Chotukool Pyramid needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Chotukool Pyramid 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Chotukool Pyramid 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Chotukool Pyramid is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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 ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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 ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid can leverage the sales team experience to cultivate customer relationships as Chotukool Pyramid is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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 Chotukool Pyramid has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid, it seems that the employees of Chotukool Pyramid 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.
Slow decision making process
– As mentioned earlier in the report, Chotukool Pyramid has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Chotukool Pyramid even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High operating costs
– Compare to the competitors, firm in the HBR case study ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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 Chotukool Pyramid 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid, is just above the industry average. Chotukool Pyramid 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.
Skills based hiring
– The stress on hiring functional specialists at Chotukool Pyramid 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 ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid | 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 ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid are -
Loyalty marketing
– Chotukool Pyramid 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.
Building a culture of innovation
– managers at Chotukool Pyramid 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Chotukool Pyramid can use these opportunities to build new business models that can help the communities that Chotukool Pyramid operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Chotukool Pyramid 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, Chotukool Pyramid is facing challenges because of the dominance of functional experts in the organization. ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Chotukool Pyramid can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Chotukool Pyramid has opened avenues for new revenue streams for the organization in the industry. This can help Chotukool Pyramid to build a more holistic ecosystem as suggested in the ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid case study. Chotukool Pyramid can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Chotukool Pyramid can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Chotukool Pyramid to increase its market reach. Chotukool Pyramid 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.
Learning at scale
– Online learning technologies has now opened space for Chotukool Pyramid 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Chotukool Pyramid 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, ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Chotukool Pyramid 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.
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 Chotukool Pyramid in the consumer business. Now Chotukool Pyramid can target international markets with far fewer capital restrictions requirements than the existing system.
Threats ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid are -
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 Chotukool Pyramid business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Chotukool Pyramid
– 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 Chotukool Pyramid.
High dependence on third party suppliers
– Chotukool Pyramid 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.
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.
Technology acceleration in Forth Industrial Revolution
– Chotukool Pyramid has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Chotukool Pyramid 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.
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 Chotukool Pyramid.
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. Chotukool Pyramid needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Chotukool Pyramid with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Chotukool Pyramid 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid, Chotukool Pyramid 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 .
Consumer confidence and its impact on Chotukool Pyramid 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.
Shortening product life cycle
– it is one of the major threat that Chotukool Pyramid is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Chotukool Pyramid 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. Chotukool Pyramid can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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 ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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 ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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 ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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 ChotuKool (B): Consumer-centric Disruption at the Bottom of the Pyramid 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 Chotukool Pyramid needs to make to build a sustainable competitive advantage.