ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study SWOT Analysis Solution
Case Study Description of ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid
With ChotuKool, an innovative cooler, Gopalan Sunderraman, Executive Vice President at Godrej & Boyce Manufacturing and his team were able to profitably address a need of bottom-of-the-pyramid consumers in rural India. Case A presents the challenge and the approach used (in-market research) to identify the need and design a solution. To ensure ChotuKool's go-to-market strategy is a success, G&B must get the finance model and distribution model right. Case B explains how G&B partnered with micro-finance institutions and empowerment initiatives targeting local women to address the finance and distribution model challenges. It also describes the non-financial impact that ChotuKool had on local entrepreneurs and consumers, as well as hinting at future avenues for growth.
Swot Analysis of "ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid" written by Philip Parker, Byron Ascott-Evans includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Chotukool Pyramid facing as an external strategic factors. Some of the topics covered in ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid case study are - Strategic Management Strategies, Marketing, Social enterprise, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid casestudy better are - – wage bills are increasing, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, there is backlash against globalization, supply chains are disrupted by pandemic ,
central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chotukool Pyramid, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chotukool Pyramid operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid can be done for the following purposes –
1. Strategic planning using facts provided in ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid case study
2. Improving business portfolio management of Chotukool Pyramid
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Chotukool Pyramid
Strengths ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chotukool Pyramid in ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Cross disciplinary teams
– Horizontal connected teams at the Chotukool Pyramid 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.
High switching costs
– The high switching costs that Chotukool Pyramid has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
High brand equity
– Chotukool Pyramid has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Chotukool Pyramid to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Chotukool Pyramid has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Chotukool Pyramid has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Low bargaining power of suppliers
– Suppliers of Chotukool Pyramid in the sector have low bargaining power. ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chotukool Pyramid to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Chotukool Pyramid is present in almost all the verticals within the industry. This has provided firm in ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Learning organization
- Chotukool Pyramid 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 Chotukool Pyramid is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Chotukool Pyramid is one of the most innovative firm in sector. Manager in ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Chotukool Pyramid is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid firm has clearly differentiated products in the market place. This has enabled Chotukool Pyramid to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Chotukool Pyramid to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Chotukool Pyramid has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid are -
Skills based hiring
– The stress on hiring functional specialists at Chotukool Pyramid 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.
Low market penetration in new markets
– Outside its home market of Chotukool Pyramid, firm in the HBR case study ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Chotukool Pyramid has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to strategic competitive environment developments
– As ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid HBR case study mentions - Chotukool Pyramid 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Chotukool Pyramid has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Chotukool Pyramid has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Chotukool Pyramid even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Chotukool Pyramid is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid, is just above the industry average. Chotukool Pyramid 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Chotukool Pyramid needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
No frontier risks strategy
– After analyzing the HBR case study ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Aligning sales with marketing
– It come across in the case study ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid 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 ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid can leverage the sales team experience to cultivate customer relationships as Chotukool Pyramid is planning to shift buying processes online.
Opportunities ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Chotukool Pyramid to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Chotukool Pyramid to hire the very best people irrespective of their geographical location.
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 Chotukool Pyramid 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.
Learning at scale
– Online learning technologies has now opened space for Chotukool Pyramid to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Chotukool Pyramid can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Chotukool Pyramid is facing challenges because of the dominance of functional experts in the organization. ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Chotukool Pyramid 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, ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Chotukool Pyramid 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 ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Chotukool Pyramid 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 Chotukool Pyramid has opened avenues for new revenue streams for the organization in the industry. This can help Chotukool Pyramid to build a more holistic ecosystem as suggested in the ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid case study. Chotukool Pyramid can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Chotukool Pyramid 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Chotukool Pyramid can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Chotukool Pyramid can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Chotukool Pyramid in the consumer business. Now Chotukool Pyramid can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Chotukool Pyramid 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.
Threats ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid are -
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. Chotukool Pyramid needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Chotukool Pyramid can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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 Chotukool Pyramid business can come under increasing regulations regarding data privacy, data security, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Chotukool Pyramid will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology acceleration in Forth Industrial Revolution
– Chotukool Pyramid has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Chotukool Pyramid needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High dependence on third party suppliers
– Chotukool Pyramid 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.
Regulatory challenges
– Chotukool Pyramid 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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Chotukool Pyramid in the Strategy & Execution sector and impact the bottomline of the organization.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Chotukool Pyramid in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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 Chotukool Pyramid.
Shortening product life cycle
– it is one of the major threat that Chotukool Pyramid is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Chotukool Pyramid can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of ChotuKool (A): Consumer-centric Disruption at the Bottom of the Pyramid is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Chotukool Pyramid needs to make to build a sustainable competitive advantage.
