ChotuKool (A): 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 (A): Consumer-centric Disruption at the Bottom of the Pyramid
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 (A): 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 (A): 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 (A): Consumer-centric Disruption at the Bottom of the Pyramid casestudy better are - – digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, talent flight as more people leaving formal jobs,
competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of ChotuKool (A): 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 (A): 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 (A): Consumer-centric Disruption at the Bottom of the Pyramid can be done for the following purposes –
1. Strategic planning using facts provided in ChotuKool (A): 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 (A): 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 (A): 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.
High switching costs
– The high switching costs that Chotukool Pyramid 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
– Chotukool Pyramid 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 Philip Parker, Byron Ascott-Evans 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 brand equity
– Chotukool Pyramid has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Chotukool Pyramid to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Chotukool Pyramid is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Chotukool Pyramid is present in almost all the verticals within the industry. This has provided firm in ChotuKool (A): 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Chotukool Pyramid digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Chotukool Pyramid 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 ChotuKool (A): 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.
Ability to lead change in Strategy & Execution field
– Chotukool Pyramid is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Chotukool Pyramid in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Chotukool Pyramid is one of the most innovative firm in sector. Manager in ChotuKool (A): 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.
Ability to recruit top talent
– Chotukool Pyramid is one of the leading recruiters in the industry. Managers in the ChotuKool (A): 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.
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 (A): 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.
Weaknesses ChotuKool (A): 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 (A): 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the ChotuKool (A): 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 (A): 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.
High operating costs
– Compare to the competitors, firm in the HBR case study ChotuKool (A): 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.
Capital Spending Reduction
– Even during the low interest decade, Chotukool Pyramid 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.
Interest costs
– Compare to the competition, Chotukool Pyramid 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.
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.
Products dominated business model
– Even though Chotukool Pyramid 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 - ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid should strive to include more intangible value offerings along with its core products and services.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Philip Parker, Byron Ascott-Evans suggests that, Chotukool Pyramid 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid, in the dynamic environment Chotukool Pyramid has struggled to respond to the nimble upstart competition. Chotukool Pyramid has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities ChotuKool (A): 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 (A): Consumer-centric Disruption at the Bottom of the Pyramid are -
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.
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. Chotukool Pyramid 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. Chotukool Pyramid 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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Chotukool Pyramid 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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Chotukool Pyramid 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 Chotukool Pyramid to hire the very best people irrespective of their geographical location.
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.
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.
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 (A): 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.
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 (A): 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.
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.
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.
Threats ChotuKool (A): 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 (A): Consumer-centric Disruption at the Bottom of the Pyramid 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 ChotuKool (A): 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 .
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.
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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Chotukool Pyramid 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.
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. Chotukool Pyramid can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Stagnating economy with rate increase
– Chotukool Pyramid 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.
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.
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.
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 Chotukool Pyramid in the Strategy & Execution sector and impact the bottomline of the organization.
Weighted SWOT Analysis of ChotuKool (A): 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 (A): 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 (A): 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 (A): 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 (A): 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.
