Braun AG: Product Design and Development for a New Oral Care Category (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Braun AG: Product Design and Development for a New Oral Care Category (B)
How does one determine the size of a "window of opportunity?" How does one determine what kind of risk is appropriate? Braun's new plaque remover is almost ready to be approved for manufacture and scheduled for launch, but toothpaste is still eating away at the tiny gears in the toothbrush head. Given the imminent launch of its formidable competitor into Europe, Braun wants to enter the market as soon as possible with what it believes is otherwise a superior product. Should Braun launch as planned, knowing that it will correct the gear problem shortly, or should Braun delay the launch until the problem is 100% solved? Some members of management, trusting Braun's engineers, tend toward the former, given the apparently small window of opportunity, whereas Ms. Valiaho, project manager, favors the latter. At this intersection of technology, design, and marketing, students are challenged to struggle with how to make such a decision. They are also encouraged to think about how product strategies, implicit or explicit, influence management decisions.
Swot Analysis of "Braun AG: Product Design and Development for a New Oral Care Category (B)" written by Karen J. Freeze includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Braun Braun's facing as an external strategic factors. Some of the topics covered in Braun AG: Product Design and Development for a New Oral Care Category (B) case study are - Strategic Management Strategies, Design, Product development, Project management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Braun AG: Product Design and Development for a New Oral Care Category (B) casestudy better are - – there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, increasing energy prices,
supply chains are disrupted by pandemic , wage bills are increasing, etc
Introduction to SWOT Analysis of Braun AG: Product Design and Development for a New Oral Care Category (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Braun AG: Product Design and Development for a New Oral Care Category (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Braun Braun's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Braun Braun's 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 Braun AG: Product Design and Development for a New Oral Care Category (B) can be done for the following purposes –
1. Strategic planning using facts provided in Braun AG: Product Design and Development for a New Oral Care Category (B) case study
2. Improving business portfolio management of Braun Braun's
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 Braun Braun's
Strengths Braun AG: Product Design and Development for a New Oral Care Category (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Braun Braun's in Braun AG: Product Design and Development for a New Oral Care Category (B) Harvard Business Review case study are -
Learning organization
- Braun Braun's 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 Braun Braun's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Braun AG: Product Design and Development for a New Oral Care Category (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Braun Braun's is present in almost all the verticals within the industry. This has provided firm in Braun AG: Product Design and Development for a New Oral Care Category (B) 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 Braun Braun's in the sector have low bargaining power. Braun AG: Product Design and Development for a New Oral Care Category (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Braun Braun's to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Braun Braun's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Braun Braun's is one of the leading recruiters in the industry. Managers in the Braun AG: Product Design and Development for a New Oral Care Category (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Braun Braun's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Braun Braun's 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.
Highly skilled collaborators
– Braun Braun's 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 Braun AG: Product Design and Development for a New Oral Care Category (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Braun Braun's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Braun Braun's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– Braun AG: Product Design and Development for a New Oral Care Category (B) firm has clearly differentiated products in the market place. This has enabled Braun Braun's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Braun Braun's to invest into research and development (R&D) and innovation.
Organizational Resilience of Braun Braun's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Braun Braun's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Braun Braun's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Braun Braun's 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.
Ability to lead change in Strategy & Execution field
– Braun Braun's 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 Braun Braun's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Braun AG: Product Design and Development for a New Oral Care Category (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Braun AG: Product Design and Development for a New Oral Care Category (B) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Braun AG: Product Design and Development for a New Oral Care Category (B) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Braun Braun's has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Braun Braun's 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.
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 Braun Braun's supply chain. Even after few cautionary changes mentioned in the HBR case study - Braun AG: Product Design and Development for a New Oral Care Category (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Braun Braun's vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Braun Braun's products
– To increase the profitability and margins on the products, Braun Braun's needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Braun Braun's 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.
Aligning sales with marketing
– It come across in the case study Braun AG: Product Design and Development for a New Oral Care Category (B) 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 Braun AG: Product Design and Development for a New Oral Care Category (B) can leverage the sales team experience to cultivate customer relationships as Braun Braun's is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Braun Braun's, firm in the HBR case study Braun AG: Product Design and Development for a New Oral Care Category (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Braun AG: Product Design and Development for a New Oral Care Category (B), it seems that the employees of Braun Braun's 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 Braun AG: Product Design and Development for a New Oral Care Category (B) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Braun Braun's 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Braun Braun's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Braun AG: Product Design and Development for a New Oral Care Category (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Braun Braun's 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.
Opportunities Braun AG: Product Design and Development for a New Oral Care Category (B) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Braun AG: Product Design and Development for a New Oral Care Category (B) are -
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. Braun Braun's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Braun Braun's 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.
Better consumer reach
– The expansion of the 5G network will help Braun Braun's to increase its market reach. Braun Braun's 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.
Leveraging digital technologies
– Braun Braun's 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Braun Braun's 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Braun Braun's 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 Braun Braun's to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Braun Braun's 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, Braun AG: Product Design and Development for a New Oral Care Category (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Braun Braun's in the consumer business. Now Braun Braun's can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Braun Braun's has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Braun AG: Product Design and Development for a New Oral Care Category (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Braun Braun's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Braun Braun's has opened avenues for new revenue streams for the organization in the industry. This can help Braun Braun's to build a more holistic ecosystem as suggested in the Braun AG: Product Design and Development for a New Oral Care Category (B) case study. Braun Braun's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Braun Braun's 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.
Manufacturing automation
– Braun Braun's can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
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. Braun Braun's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Braun AG: Product Design and Development for a New Oral Care Category (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Braun AG: Product Design and Development for a New Oral Care Category (B) are -
Technology acceleration in Forth Industrial Revolution
– Braun Braun's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Braun Braun's 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.
Increasing wage structure of Braun Braun's
– 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 Braun Braun's.
Stagnating economy with rate increase
– Braun Braun's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Braun Braun's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Braun Braun's in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Braun Braun's business can come under increasing regulations regarding data privacy, data security, etc.
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.
Environmental challenges
– Braun Braun's 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. Braun Braun's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
High dependence on third party suppliers
– Braun Braun's 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.
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.
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 Braun Braun's.
Shortening product life cycle
– it is one of the major threat that Braun Braun's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Braun Braun's 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.
Weighted SWOT Analysis of Braun AG: Product Design and Development for a New Oral Care Category (B) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Braun AG: Product Design and Development for a New Oral Care Category (B) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Braun AG: Product Design and Development for a New Oral Care Category (B) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Braun AG: Product Design and Development for a New Oral Care Category (B) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Braun AG: Product Design and Development for a New Oral Care Category (B) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Braun Braun's needs to make to build a sustainable competitive advantage.