Braun AG: Product Design and Development for a New Oral Care Category (A) 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 (A)
Does the Braun plaque removal (electronic toothbrush) product under development have a chance against the dominant American player, Interplak? Under an innovative female project manager, the Braun team has come to a decision point that is made urgent by the recent purchase of Interplak by Bausch & Lomb, a major company with a threatening presence in Europe. Looking at the product development process, the "product semantics" of the current design (does it communicate superior value to the consumer?), the technical problems yet to be solved, and the pressure to follow the Interplak lead, students have to develop a product strategy that fits the competitive situation and the competency and character of the company.
Swot Analysis of "Braun AG: Product Design and Development for a New Oral Care Category (A)" written by Karen J. Freeze includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Interplak Braun facing as an external strategic factors. Some of the topics covered in Braun AG: Product Design and Development for a New Oral Care Category (A) 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 (A) casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , there is backlash against globalization, increasing transportation and logistics costs,
banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, etc
Introduction to SWOT Analysis of Braun AG: Product Design and Development for a New Oral Care Category (A)
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 (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Interplak Braun, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Interplak Braun 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 (A) 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 (A) case study
2. Improving business portfolio management of Interplak Braun
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 Interplak Braun
Strengths Braun AG: Product Design and Development for a New Oral Care Category (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Interplak Braun in Braun AG: Product Design and Development for a New Oral Care Category (A) Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– Braun AG: Product Design and Development for a New Oral Care Category (A) firm has clearly differentiated products in the market place. This has enabled Interplak Braun to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Interplak Braun to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Interplak Braun 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.
Strong track record of project management
– Interplak Braun is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Interplak Braun 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 Interplak Braun 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 (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Interplak Braun 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 Braun AG: Product Design and Development for a New Oral Care Category (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Interplak Braun is one of the most innovative firm in sector. Manager in Braun AG: Product Design and Development for a New Oral Care Category (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Interplak Braun are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to lead change in Strategy & Execution field
– Interplak Braun 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 Interplak Braun in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Interplak Braun
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Interplak Braun does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Interplak Braun digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Interplak Braun 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.
Successful track record of launching new products
– Interplak Braun has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Interplak Braun 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 Interplak Braun in the sector have low bargaining power. Braun AG: Product Design and Development for a New Oral Care Category (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Interplak Braun to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Braun AG: Product Design and Development for a New Oral Care Category (A) | 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 (A) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Braun AG: Product Design and Development for a New Oral Care Category (A), in the dynamic environment Interplak Braun has struggled to respond to the nimble upstart competition. Interplak Braun has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Karen J. Freeze suggests that, Interplak Braun 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.
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 (A) 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 Interplak Braun 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Interplak Braun is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Interplak Braun needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Interplak Braun to focus more on services rather than just following the product oriented approach.
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 (A) 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 Interplak Braun has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Interplak Braun 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.
Aligning sales with marketing
– It come across in the case study Braun AG: Product Design and Development for a New Oral Care Category (A) 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 (A) can leverage the sales team experience to cultivate customer relationships as Interplak Braun is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Interplak Braun 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.
High cash cycle compare to competitors
Interplak Braun 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.
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 (A), it seems that the employees of Interplak Braun 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.
Products dominated business model
– Even though Interplak Braun 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 - Braun AG: Product Design and Development for a New Oral Care Category (A) should strive to include more intangible value offerings along with its core products and services.
Opportunities Braun AG: Product Design and Development for a New Oral Care Category (A) | 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 (A) are -
Leveraging digital technologies
– Interplak Braun 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Interplak Braun 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 (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Interplak Braun can use these opportunities to build new business models that can help the communities that Interplak Braun operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Interplak Braun can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Interplak Braun has opened avenues for new revenue streams for the organization in the industry. This can help Interplak Braun to build a more holistic ecosystem as suggested in the Braun AG: Product Design and Development for a New Oral Care Category (A) case study. Interplak Braun can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Interplak Braun 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.
Loyalty marketing
– Interplak Braun 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Interplak Braun 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.
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 Interplak Braun in the consumer business. Now Interplak Braun can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Interplak Braun 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Interplak Braun 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 Interplak Braun to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Interplak Braun to increase its market reach. Interplak Braun 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Interplak Braun can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Braun AG: Product Design and Development for a New Oral Care Category (A) 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 (A) 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 Interplak Braun business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Interplak Braun 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. Interplak Braun can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Interplak Braun in the Strategy & Execution sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Braun AG: Product Design and Development for a New Oral Care Category (A), Interplak Braun 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 .
Stagnating economy with rate increase
– Interplak Braun 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.
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 Interplak Braun.
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. Interplak Braun needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Regulatory challenges
– Interplak Braun needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
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.
Technology acceleration in Forth Industrial Revolution
– Interplak Braun has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Interplak Braun 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Interplak Braun 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, Interplak Braun 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 Braun AG: Product Design and Development for a New Oral Care Category (A) .
High dependence on third party suppliers
– Interplak Braun 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 Braun AG: Product Design and Development for a New Oral Care Category (A) 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 (A) 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 (A) 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 (A) 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 (A) 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 Interplak Braun needs to make to build a sustainable competitive advantage.