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Minnetonka Corp.: From Softsoap to Eternity SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Minnetonka Corp.: From Softsoap to Eternity


Minnetonka Corp. which was founded in 1964, began as a niche player in the gift soap and novelty toiletries markets. In 1980, it entered--and managed to capture a piece of--the mass bar-soap market with pump-dispensed Softsoap liquid soap. In 1984, the company took on the toothpaste market with plaque-fighting, pump-dispensed Check-Up. This time, success was more fleeting. Minnetonka launched the hugely successful Obsession fragrance in 1985, following up with Eternity in 1988. Minnetonka's various businesses were sold over the period 1987 to 1989. Analysis suggests that the key is the use of scope--starting a new game linked to an existing game in which rival players are already established. Analysis indicates that rivals may then deliberately choose to delay imitating the innovator if they view the innovation as: 1) sufficiently unlikely to succeed in the marketplace, and 2) sufficiently close a substitute to their existing products. A rewritten version of an earlier case.

Authors :: Adam Brandenburger, Vijay Krishna

Topics :: Strategy & Execution

Tags :: Marketing, Product development, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Minnetonka Corp.: From Softsoap to Eternity" written by Adam Brandenburger, Vijay Krishna includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Minnetonka Soap facing as an external strategic factors. Some of the topics covered in Minnetonka Corp.: From Softsoap to Eternity case study are - Strategic Management Strategies, Marketing, Product development and Strategy & Execution.


Some of the macro environment factors that can be used to understand the Minnetonka Corp.: From Softsoap to Eternity casestudy better are - – wage bills are increasing, geopolitical disruptions, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, technology disruption, challanges to central banks by blockchain based private currencies, etc



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Introduction to SWOT Analysis of Minnetonka Corp.: From Softsoap to Eternity


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Minnetonka Corp.: From Softsoap to Eternity case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Minnetonka Soap, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Minnetonka Soap 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 Minnetonka Corp.: From Softsoap to Eternity can be done for the following purposes –
1. Strategic planning using facts provided in Minnetonka Corp.: From Softsoap to Eternity case study
2. Improving business portfolio management of Minnetonka Soap
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 Minnetonka Soap




Strengths Minnetonka Corp.: From Softsoap to Eternity | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Minnetonka Soap in Minnetonka Corp.: From Softsoap to Eternity Harvard Business Review case study are -

High switching costs

– The high switching costs that Minnetonka Soap 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.

Organizational Resilience of Minnetonka Soap

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Minnetonka Soap does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Analytics focus

– Minnetonka Soap 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 Adam Brandenburger, Vijay Krishna 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.

Cross disciplinary teams

– Horizontal connected teams at the Minnetonka Soap 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.

Superior customer experience

– The customer experience strategy of Minnetonka Soap in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Digital Transformation in Strategy & Execution segment

- digital transformation varies from industry to industry. For Minnetonka Soap digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Minnetonka Soap 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.

Strong track record of project management

– Minnetonka Soap is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Sustainable margins compare to other players in Strategy & Execution industry

– Minnetonka Corp.: From Softsoap to Eternity firm has clearly differentiated products in the market place. This has enabled Minnetonka Soap to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Minnetonka Soap to invest into research and development (R&D) and innovation.

Diverse revenue streams

– Minnetonka Soap is present in almost all the verticals within the industry. This has provided firm in Minnetonka Corp.: From Softsoap to Eternity 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.

Innovation driven organization

– Minnetonka Soap is one of the most innovative firm in sector. Manager in Minnetonka Corp.: From Softsoap to Eternity Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

High brand equity

– Minnetonka Soap has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Minnetonka Soap to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Highly skilled collaborators

– Minnetonka Soap 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 Minnetonka Corp.: From Softsoap to Eternity HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.






Weaknesses Minnetonka Corp.: From Softsoap to Eternity | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Minnetonka Corp.: From Softsoap to Eternity are -

Products dominated business model

– Even though Minnetonka Soap 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 - Minnetonka Corp.: From Softsoap to Eternity should strive to include more intangible value offerings along with its core products and services.

Interest costs

– Compare to the competition, Minnetonka Soap 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.

High operating costs

– Compare to the competitors, firm in the HBR case study Minnetonka Corp.: From Softsoap to Eternity 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 Minnetonka Soap 's lucrative customers.

Workers concerns about automation

– As automation is fast increasing in the segment, Minnetonka Soap 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.

Capital Spending Reduction

– Even during the low interest decade, Minnetonka Soap 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.

Slow to strategic competitive environment developments

– As Minnetonka Corp.: From Softsoap to Eternity HBR case study mentions - Minnetonka Soap takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

High cash cycle compare to competitors

Minnetonka Soap 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.

High bargaining power of channel partners

– Because of the regulatory requirements, Adam Brandenburger, Vijay Krishna suggests that, Minnetonka Soap 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.

Low market penetration in new markets

– Outside its home market of Minnetonka Soap, firm in the HBR case study Minnetonka Corp.: From Softsoap to Eternity needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Minnetonka Corp.: From Softsoap to Eternity 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 Minnetonka Soap has relatively successful track record of launching new products.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Minnetonka Soap is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Minnetonka Corp.: From Softsoap to Eternity can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.




Opportunities Minnetonka Corp.: From Softsoap to Eternity | 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 Minnetonka Corp.: From Softsoap to Eternity are -

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 Minnetonka Soap 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.

Manufacturing automation

– Minnetonka Soap 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Minnetonka Soap 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 Minnetonka Soap to hire the very best people irrespective of their geographical location.

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. Minnetonka Soap 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. Minnetonka Soap 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Minnetonka Soap is facing challenges because of the dominance of functional experts in the organization. Minnetonka Corp.: From Softsoap to Eternity 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.

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. Minnetonka Soap can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Minnetonka Soap can use these opportunities to build new business models that can help the communities that Minnetonka Soap operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Minnetonka Soap in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Minnetonka Soap can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Developing new processes and practices

– Minnetonka Soap can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing 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 Minnetonka Soap in the consumer business. Now Minnetonka Soap can target international markets with far fewer capital restrictions requirements than the existing system.

Low interest rates

– Even though inflation is raising its head in most developed economies, Minnetonka Soap 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.

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. Minnetonka Soap can explore opportunities that can attract volunteers and are consistent with its mission and vision.




Threats Minnetonka Corp.: From Softsoap to Eternity External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Minnetonka Corp.: From Softsoap to Eternity 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 Minnetonka Soap business can come under increasing regulations regarding data privacy, data security, etc.

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 Minnetonka Soap.

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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Minnetonka Soap 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Minnetonka Soap 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 Minnetonka Corp.: From Softsoap to Eternity .

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. Minnetonka Soap 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.

Shortening product life cycle

– it is one of the major threat that Minnetonka Soap is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Minnetonka Soap needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Minnetonka Corp.: From Softsoap to Eternity, Minnetonka Soap 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 Minnetonka Soap with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Increasing wage structure of Minnetonka Soap

– 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 Minnetonka Soap.

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.

High dependence on third party suppliers

– Minnetonka Soap 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.




Weighted SWOT Analysis of Minnetonka Corp.: From Softsoap to Eternity 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 Minnetonka Corp.: From Softsoap to Eternity 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 Minnetonka Corp.: From Softsoap to Eternity 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 Minnetonka Corp.: From Softsoap to Eternity 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 Minnetonka Corp.: From Softsoap to Eternity 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 Minnetonka Soap needs to make to build a sustainable competitive advantage.



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