Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era
The head of Tupperware Nordic faces high turnover and low motivation of the sales consultants. He seeks to understand how to use social media in innovative ways to address these challenges and to modernize the image of Tupperware. Instead of making significant investments in IT infrastructure, he uses existing social media tools and focuses on building emotional capital inside Tupperware.
Authors :: Andrew Shipilov, Christian Nill, Sourabh Pagaria
Swot Analysis of "Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era" written by Andrew Shipilov, Christian Nill, Sourabh Pagaria includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tupperware Nordic facing as an external strategic factors. Some of the topics covered in Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era case study are - Strategic Management Strategies, Emotional intelligence, Knowledge management, Social platforms and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era casestudy better are - – increasing government debt because of Covid-19 spendings, increasing energy prices, increasing transportation and logistics costs, geopolitical disruptions, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tupperware Nordic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tupperware Nordic 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 Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era can be done for the following purposes –
1. Strategic planning using facts provided in Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era case study
2. Improving business portfolio management of Tupperware Nordic
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 Tupperware Nordic
Strengths Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tupperware Nordic in Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era Harvard Business Review case study are -
Learning organization
- Tupperware Nordic 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 Tupperware Nordic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Tupperware Nordic 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 Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era firm has clearly differentiated products in the market place. This has enabled Tupperware Nordic to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Tupperware Nordic to invest into research and development (R&D) and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Tupperware Nordic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tupperware Nordic 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.
Ability to lead change in Strategy & Execution field
– Tupperware Nordic 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 Tupperware Nordic in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Tupperware Nordic
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tupperware Nordic does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Tupperware Nordic in the sector have low bargaining power. Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tupperware Nordic to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Tupperware Nordic 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 Tupperware Nordic 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.
Ability to recruit top talent
– Tupperware Nordic is one of the leading recruiters in the industry. Managers in the Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Tupperware Nordic is one of the most innovative firm in sector. Manager in Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Tupperware Nordic in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era are -
Capital Spending Reduction
– Even during the low interest decade, Tupperware Nordic 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 operating costs
– Compare to the competitors, firm in the HBR case study Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era 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 Tupperware Nordic 's lucrative customers.
Products dominated business model
– Even though Tupperware Nordic 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 - Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Tupperware Nordic has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High cash cycle compare to competitors
Tupperware Nordic 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 Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era, it seems that the employees of Tupperware Nordic 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.
Interest costs
– Compare to the competition, Tupperware Nordic 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era 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 Tupperware Nordic has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Tupperware Nordic is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Tupperware Nordic needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tupperware Nordic to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era, 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.
Lack of clear differentiation of Tupperware Nordic products
– To increase the profitability and margins on the products, Tupperware Nordic needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era | 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 Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Tupperware Nordic 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.
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 Tupperware Nordic 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.
Building a culture of innovation
– managers at Tupperware Nordic 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. Tupperware Nordic can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tupperware Nordic 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, Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tupperware Nordic 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 Tupperware Nordic can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Tupperware Nordic 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. Tupperware Nordic 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tupperware Nordic can use these opportunities to build new business models that can help the communities that Tupperware Nordic operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Creating value in data economy
– The success of analytics program of Tupperware Nordic has opened avenues for new revenue streams for the organization in the industry. This can help Tupperware Nordic to build a more holistic ecosystem as suggested in the Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era case study. Tupperware Nordic can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Tupperware Nordic 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.
Better consumer reach
– The expansion of the 5G network will help Tupperware Nordic to increase its market reach. Tupperware Nordic 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.
Developing new processes and practices
– Tupperware Nordic 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.
Threats Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era are -
Technology acceleration in Forth Industrial Revolution
– Tupperware Nordic has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Tupperware Nordic 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.
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 Tupperware Nordic.
Regulatory challenges
– Tupperware Nordic 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.
Stagnating economy with rate increase
– Tupperware Nordic 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.
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. Tupperware Nordic 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 Tupperware Nordic is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Tupperware Nordic
– 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 Tupperware Nordic.
Environmental challenges
– Tupperware Nordic 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. Tupperware Nordic can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era, Tupperware Nordic 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tupperware Nordic 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 Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era .
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. Tupperware Nordic can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Tupperware Nordic 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.
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. Tupperware Nordic needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era 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 Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era 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 Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era 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 Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era 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 Tupperware Nordic (A): Challenges to Direct Selling in the Web 2.0 Era 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 Tupperware Nordic needs to make to build a sustainable competitive advantage.
