Bunny Butcher: PETA Protests Donna Karan New York SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Bunny Butcher: PETA Protests Donna Karan New York

November 29, 2010 was "Cyber Monday," one of the busiest online shopping days of the year, with the potential to approach $1 billion in online sales in North America. The chief designer of fashion company Donna Karan New York (DKNY) was facing a difficult situation. On this particular Cyber Monday, activists for the animal-rights group People for the Ethical Treatment of Animals (PETA) had posted simultaneous messages on DKNY's Facebook page. Anyone viewing the page could not fail to discern the message, "DK Bunny Butcher." This action by PETA was the culmination of several years, beginning in 2005, of attempting to convince DKNY to stop using fur in its collections. This November 29 message was a sharp reminder to both DKNY and its Cyber Monday customers that, to this point, the company had refused to stop including fur. This message was available to be viewed by DKNY's over 200,000 fans as well as the millions of online Cyber Monday shoppers. The chief designer was unsure how to respond: on one hand was the desire to clearly explain the use of fur, on the other was to avoid escalating the publicity surrounding the matter. She needed an immediate strategy that would retain her brand's image and protect future sales.

Authors :: Michael Sider, Paul Bigus

Topics :: Strategy & Execution

Tags :: International business, Leadership, Organizational culture, Social platforms, Strategy, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Bunny Butcher: PETA Protests Donna Karan New York" written by Michael Sider, Paul Bigus includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cyber Dkny facing as an external strategic factors. Some of the topics covered in Bunny Butcher: PETA Protests Donna Karan New York case study are - Strategic Management Strategies, International business, Leadership, Organizational culture, Social platforms, Strategy and Strategy & Execution.

Some of the macro environment factors that can be used to understand the Bunny Butcher: PETA Protests Donna Karan New York casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, increasing household debt because of falling income levels, technology disruption, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, etc

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Introduction to SWOT Analysis of Bunny Butcher: PETA Protests Donna Karan New York

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bunny Butcher: PETA Protests Donna Karan New York case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cyber Dkny, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cyber Dkny 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Bunny Butcher: PETA Protests Donna Karan New York can be done for the following purposes –
1. Strategic planning using facts provided in Bunny Butcher: PETA Protests Donna Karan New York case study
2. Improving business portfolio management of Cyber Dkny
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 Cyber Dkny

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Strengths Bunny Butcher: PETA Protests Donna Karan New York | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Cyber Dkny in Bunny Butcher: PETA Protests Donna Karan New York Harvard Business Review case study are -

Diverse revenue streams

– Cyber Dkny is present in almost all the verticals within the industry. This has provided firm in Bunny Butcher: PETA Protests Donna Karan New York 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.

High switching costs

– The high switching costs that Cyber Dkny has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Organizational Resilience of Cyber Dkny

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

Ability to lead change in Strategy & Execution field

– Cyber Dkny 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 Cyber Dkny in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Highly skilled collaborators

– Cyber Dkny 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 Bunny Butcher: PETA Protests Donna Karan New York HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Successful track record of launching new products

– Cyber Dkny has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cyber Dkny 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.

Sustainable margins compare to other players in Strategy & Execution industry

– Bunny Butcher: PETA Protests Donna Karan New York firm has clearly differentiated products in the market place. This has enabled Cyber Dkny to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Cyber Dkny to invest into research and development (R&D) and innovation.

Analytics focus

– Cyber Dkny 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 Michael Sider, Paul Bigus 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.

Innovation driven organization

– Cyber Dkny is one of the most innovative firm in sector. Manager in Bunny Butcher: PETA Protests Donna Karan New York Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Low bargaining power of suppliers

– Suppliers of Cyber Dkny in the sector have low bargaining power. Bunny Butcher: PETA Protests Donna Karan New York has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cyber Dkny to manage not only supply disruptions but also source products at highly competitive prices.

Operational resilience

– The operational resilience strategy in the Bunny Butcher: PETA Protests Donna Karan New York 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.

Digital Transformation in Strategy & Execution segment

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

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Weaknesses Bunny Butcher: PETA Protests Donna Karan New York | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Bunny Butcher: PETA Protests Donna Karan New York are -

Aligning sales with marketing

– It come across in the case study Bunny Butcher: PETA Protests Donna Karan New York 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 Bunny Butcher: PETA Protests Donna Karan New York can leverage the sales team experience to cultivate customer relationships as Cyber Dkny is planning to shift buying processes online.

Interest costs

– Compare to the competition, Cyber Dkny 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 cash cycle compare to competitors

Cyber Dkny 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.

Increasing silos among functional specialists

– The organizational structure of Cyber Dkny is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Cyber Dkny needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cyber Dkny to focus more on services rather than just following the product oriented approach.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Bunny Butcher: PETA Protests Donna Karan New York, it seems that the employees of Cyber Dkny 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.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Bunny Butcher: PETA Protests Donna Karan New York, in the dynamic environment Cyber Dkny has struggled to respond to the nimble upstart competition. Cyber Dkny has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cyber Dkny is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Bunny Butcher: PETA Protests Donna Karan New York can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Need for greater diversity

– Cyber Dkny 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 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 Cyber Dkny supply chain. Even after few cautionary changes mentioned in the HBR case study - Bunny Butcher: PETA Protests Donna Karan New York, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cyber Dkny vulnerable to further global disruptions in South East Asia.

Slow to strategic competitive environment developments

– As Bunny Butcher: PETA Protests Donna Karan New York HBR case study mentions - Cyber Dkny 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.

Lack of clear differentiation of Cyber Dkny products

– To increase the profitability and margins on the products, Cyber Dkny needs to provide more differentiated products than what it is currently offering in the marketplace.

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Opportunities Bunny Butcher: PETA Protests Donna Karan New York | 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 Bunny Butcher: PETA Protests Donna Karan New York are -

Using analytics as competitive advantage

– Cyber Dkny 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 Bunny Butcher: PETA Protests Donna Karan New York - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cyber Dkny to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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. Cyber Dkny 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. Cyber Dkny 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, Cyber Dkny 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.

Buying journey improvements

– Cyber Dkny can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Bunny Butcher: PETA Protests Donna Karan New York 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.

Learning at scale

– Online learning technologies has now opened space for Cyber Dkny 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 Cyber Dkny 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 Cyber Dkny to hire the very best people irrespective of their geographical location.

Increase in government spending

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

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 Cyber Dkny 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Cyber Dkny 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, Bunny Butcher: PETA Protests Donna Karan New York, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Cyber Dkny is facing challenges because of the dominance of functional experts in the organization. Bunny Butcher: PETA Protests Donna Karan New York 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.

Creating value in data economy

– The success of analytics program of Cyber Dkny has opened avenues for new revenue streams for the organization in the industry. This can help Cyber Dkny to build a more holistic ecosystem as suggested in the Bunny Butcher: PETA Protests Donna Karan New York case study. Cyber Dkny can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Use of Bitcoin and other crypto currencies for transactions

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Cyber Dkny in the consumer business. Now Cyber Dkny can target international markets with far fewer capital restrictions requirements than the existing system.

Building a culture of innovation

– managers at Cyber Dkny 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.

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Threats Bunny Butcher: PETA Protests Donna Karan New York External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Bunny Butcher: PETA Protests Donna Karan New York are -

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.

Shortening product life cycle

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

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Bunny Butcher: PETA Protests Donna Karan New York, Cyber Dkny may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cyber Dkny 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.

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 Cyber Dkny.

Stagnating economy with rate increase

– Cyber Dkny 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.

High dependence on third party suppliers

– Cyber Dkny 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.

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 Cyber Dkny business can come under increasing regulations regarding data privacy, data security, etc.

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 Cyber Dkny in the Strategy & Execution sector and impact the bottomline of the organization.

Technology acceleration in Forth Industrial Revolution

– Cyber Dkny has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Cyber Dkny 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 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. Cyber Dkny needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of Bunny Butcher: PETA Protests Donna Karan New York 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 Bunny Butcher: PETA Protests Donna Karan New York 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 Bunny Butcher: PETA Protests Donna Karan New York 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 Bunny Butcher: PETA Protests Donna Karan New York 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 Bunny Butcher: PETA Protests Donna Karan New York 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 Cyber Dkny needs to make to build a sustainable competitive advantage.

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