Minnetonka Corp.: From Softsoap to Eternity SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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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.
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 - – competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , geopolitical disruptions,
there is increasing trade war between United States & China, central banks are concerned over increasing inflation, etc
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 -
Operational resilience
– The operational resilience strategy in the Minnetonka Corp.: From Softsoap to Eternity 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.
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.
Training and development
– Minnetonka Soap has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Minnetonka Corp.: From Softsoap to Eternity 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.
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.
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.
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.
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.
Successful track record of launching new products
– Minnetonka Soap has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Minnetonka Soap 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.
Low bargaining power of suppliers
– Suppliers of Minnetonka Soap in the sector have low bargaining power. Minnetonka Corp.: From Softsoap to Eternity has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Minnetonka Soap to manage not only supply disruptions but also source products at highly competitive prices.
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.
Effective Research and Development (R&D)
– Minnetonka Soap 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 Minnetonka Corp.: From Softsoap to Eternity - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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 -
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.
Increasing silos among functional specialists
– The organizational structure of Minnetonka Soap is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Minnetonka Soap needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Minnetonka Soap to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Minnetonka Corp.: From Softsoap to Eternity, is just above the industry average. Minnetonka Soap 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 Minnetonka Soap 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.
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.
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.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Minnetonka Corp.: From Softsoap to Eternity, in the dynamic environment Minnetonka Soap has struggled to respond to the nimble upstart competition. Minnetonka Soap has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
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 Minnetonka Soap supply chain. Even after few cautionary changes mentioned in the HBR case study - Minnetonka Corp.: From Softsoap to Eternity, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Minnetonka Soap vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Minnetonka Soap products
– To increase the profitability and margins on the products, Minnetonka Soap needs to provide more differentiated products than what it is currently offering in the marketplace.
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 -
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.
Creating value in data economy
– The success of analytics program of Minnetonka Soap has opened avenues for new revenue streams for the organization in the industry. This can help Minnetonka Soap to build a more holistic ecosystem as suggested in the Minnetonka Corp.: From Softsoap to Eternity case study. Minnetonka Soap can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
Buying journey improvements
– Minnetonka Soap can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Minnetonka Corp.: From Softsoap to Eternity suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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.
Better consumer reach
– The expansion of the 5G network will help Minnetonka Soap to increase its market reach. Minnetonka Soap 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 Minnetonka Soap 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.
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.
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.
Building a culture of innovation
– managers at Minnetonka Soap 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.
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.
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.
Leveraging digital technologies
– Minnetonka Soap 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.
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 -
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.
Environmental challenges
– Minnetonka Soap 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. Minnetonka Soap can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 .
Stagnating economy with rate increase
– Minnetonka Soap 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.
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 .
Technology acceleration in Forth Industrial Revolution
– Minnetonka Soap has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Minnetonka Soap 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.
Consumer confidence and its impact on Minnetonka Soap 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.
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 Minnetonka Soap in the Strategy & Execution sector and impact the bottomline 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.
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.
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.
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.
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. Minnetonka Soap can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
