Swot Analysis of "TerraCycle (D): Where's the Capital in Eco-Capitalism?" written by Stuart Read, Lepoutre Jan, Philippe Margery includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Terracycle Capitalism facing as an external strategic factors. Some of the topics covered in TerraCycle (D): Where's the Capital in Eco-Capitalism? case study are - Strategic Management Strategies, Entrepreneurship, Innovation, Sustainability and Strategy & Execution.
Some of the macro environment factors that can be used to understand the TerraCycle (D): Where's the Capital in Eco-Capitalism? casestudy better are - – increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google,
technology disruption, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of TerraCycle (D): Where's the Capital in Eco-Capitalism?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TerraCycle (D): Where's the Capital in Eco-Capitalism? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Terracycle Capitalism, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Terracycle Capitalism 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 TerraCycle (D): Where's the Capital in Eco-Capitalism? can be done for the following purposes –
1. Strategic planning using facts provided in TerraCycle (D): Where's the Capital in Eco-Capitalism? case study
2. Improving business portfolio management of Terracycle Capitalism
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 Terracycle Capitalism
Strengths TerraCycle (D): Where's the Capital in Eco-Capitalism? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Terracycle Capitalism in TerraCycle (D): Where's the Capital in Eco-Capitalism? Harvard Business Review case study are -
Successful track record of launching new products
– Terracycle Capitalism has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Terracycle Capitalism 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.
Strong track record of project management
– Terracycle Capitalism is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Terracycle Capitalism in the sector have low bargaining power. TerraCycle (D): Where's the Capital in Eco-Capitalism? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Terracycle Capitalism to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Terracycle Capitalism digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Terracycle Capitalism 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.
Diverse revenue streams
– Terracycle Capitalism is present in almost all the verticals within the industry. This has provided firm in TerraCycle (D): Where's the Capital in Eco-Capitalism? 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.
Organizational Resilience of Terracycle Capitalism
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Terracycle Capitalism does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– TerraCycle (D): Where's the Capital in Eco-Capitalism? firm has clearly differentiated products in the market place. This has enabled Terracycle Capitalism to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Terracycle Capitalism to invest into research and development (R&D) and innovation.
High brand equity
– Terracycle Capitalism has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Terracycle Capitalism to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Terracycle Capitalism 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 TerraCycle (D): Where's the Capital in Eco-Capitalism? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Terracycle Capitalism 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.
Superior customer experience
– The customer experience strategy of Terracycle Capitalism in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Terracycle Capitalism is one of the most innovative firm in sector. Manager in TerraCycle (D): Where's the Capital in Eco-Capitalism? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses TerraCycle (D): Where's the Capital in Eco-Capitalism? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TerraCycle (D): Where's the Capital in Eco-Capitalism? are -
High cash cycle compare to competitors
Terracycle Capitalism 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Terracycle Capitalism is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study TerraCycle (D): Where's the Capital in Eco-Capitalism? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Terracycle Capitalism 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.
No frontier risks strategy
– After analyzing the HBR case study TerraCycle (D): Where's the Capital in Eco-Capitalism?, 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.
Need for greater diversity
– Terracycle Capitalism 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 operating costs
– Compare to the competitors, firm in the HBR case study TerraCycle (D): Where's the Capital in Eco-Capitalism? 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 Terracycle Capitalism 's lucrative customers.
Slow to strategic competitive environment developments
– As TerraCycle (D): Where's the Capital in Eco-Capitalism? HBR case study mentions - Terracycle Capitalism 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.
Aligning sales with marketing
– It come across in the case study TerraCycle (D): Where's the Capital in Eco-Capitalism? 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 TerraCycle (D): Where's the Capital in Eco-Capitalism? can leverage the sales team experience to cultivate customer relationships as Terracycle Capitalism is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Terracycle Capitalism 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.
Capital Spending Reduction
– Even during the low interest decade, Terracycle Capitalism 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study TerraCycle (D): Where's the Capital in Eco-Capitalism?, in the dynamic environment Terracycle Capitalism has struggled to respond to the nimble upstart competition. Terracycle Capitalism has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities TerraCycle (D): Where's the Capital in Eco-Capitalism? | 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 TerraCycle (D): Where's the Capital in Eco-Capitalism? are -
Leveraging digital technologies
– Terracycle Capitalism 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Terracycle Capitalism 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 Terracycle Capitalism to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Terracycle Capitalism to increase its market reach. Terracycle Capitalism 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.
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. Terracycle Capitalism 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. Terracycle Capitalism 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Terracycle Capitalism can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Terracycle Capitalism in the consumer business. Now Terracycle Capitalism can target international markets with far fewer capital restrictions requirements than the existing system.
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. Terracycle Capitalism can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Terracycle Capitalism can use these opportunities to build new business models that can help the communities that Terracycle Capitalism 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. Terracycle Capitalism 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 Terracycle Capitalism has opened avenues for new revenue streams for the organization in the industry. This can help Terracycle Capitalism to build a more holistic ecosystem as suggested in the TerraCycle (D): Where's the Capital in Eco-Capitalism? case study. Terracycle Capitalism can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Terracycle Capitalism can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. TerraCycle (D): Where's the Capital in Eco-Capitalism? 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Terracycle Capitalism 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, TerraCycle (D): Where's the Capital in Eco-Capitalism?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Terracycle Capitalism 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.
Threats TerraCycle (D): Where's the Capital in Eco-Capitalism? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TerraCycle (D): Where's the Capital in Eco-Capitalism? are -
High dependence on third party suppliers
– Terracycle Capitalism 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.
Stagnating economy with rate increase
– Terracycle Capitalism 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.
Regulatory challenges
– Terracycle Capitalism 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.
Consumer confidence and its impact on Terracycle Capitalism 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.
Environmental challenges
– Terracycle Capitalism 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. Terracycle Capitalism can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Terracycle Capitalism needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Terracycle Capitalism with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Terracycle Capitalism 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. Terracycle Capitalism 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 TerraCycle (D): Where's the Capital in Eco-Capitalism?, Terracycle Capitalism 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 .
Shortening product life cycle
– it is one of the major threat that Terracycle Capitalism 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 Terracycle Capitalism
– 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 Terracycle Capitalism.
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. Terracycle Capitalism 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 TerraCycle (D): Where's the Capital in Eco-Capitalism? 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 TerraCycle (D): Where's the Capital in Eco-Capitalism? 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 TerraCycle (D): Where's the Capital in Eco-Capitalism? 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 TerraCycle (D): Where's the Capital in Eco-Capitalism? 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 TerraCycle (D): Where's the Capital in Eco-Capitalism? 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 Terracycle Capitalism needs to make to build a sustainable competitive advantage.