R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women
While R. J. Reynolds prepares to launch a new cigarette designed to recapture a portion of the 18- to 24-year-old female market from Philip Morris's rival Marlboro, a small health advocacy group receives an anonymous package exposing the marketing plans for the new brand. Poses the tactical strategies of the public health advocates against the defensive strategies of RJR as each group pursues its own goals.
Swot Analysis of "R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women" written by Robbin Derry, Sachin Waikar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cigarette Reynolds's facing as an external strategic factors. Some of the topics covered in R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women case study are - Strategic Management Strategies, Marketing, Social responsibility, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women casestudy better are - – cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic ,
technology disruption, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cigarette Reynolds's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cigarette Reynolds's 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 R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women can be done for the following purposes –
1. Strategic planning using facts provided in R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women case study
2. Improving business portfolio management of Cigarette Reynolds's
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 Cigarette Reynolds's
Strengths R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cigarette Reynolds's in R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women Harvard Business Review case study are -
Training and development
– Cigarette Reynolds's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Cigarette Reynolds's 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 Robbin Derry, Sachin Waikar 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.
Diverse revenue streams
– Cigarette Reynolds's is present in almost all the verticals within the industry. This has provided firm in R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Cigarette Reynolds's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cigarette Reynolds's 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.
Low bargaining power of suppliers
– Suppliers of Cigarette Reynolds's in the sector have low bargaining power. R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cigarette Reynolds's to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Cigarette Reynolds's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cigarette Reynolds's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women 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.
Effective Research and Development (R&D)
– Cigarette Reynolds's 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 R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Cigarette Reynolds's 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 Cigarette Reynolds's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Cigarette Reynolds's is one of the most innovative firm in sector. Manager in R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Strategy & Execution field
– Cigarette Reynolds's 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 Cigarette Reynolds's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Cigarette Reynolds's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women are -
Skills based hiring
– The stress on hiring functional specialists at Cigarette Reynolds's 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.
Slow decision making process
– As mentioned earlier in the report, Cigarette Reynolds's 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. Cigarette Reynolds's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women, in the dynamic environment Cigarette Reynolds's has struggled to respond to the nimble upstart competition. Cigarette Reynolds's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Cigarette Reynolds's 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.
Low market penetration in new markets
– Outside its home market of Cigarette Reynolds's, firm in the HBR case study R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Cigarette Reynolds's 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 - R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Cigarette Reynolds's is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Cigarette Reynolds's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cigarette Reynolds's to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Robbin Derry, Sachin Waikar suggests that, Cigarette Reynolds's is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women, it seems that the employees of Cigarette Reynolds's 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, Cigarette Reynolds's 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 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 Cigarette Reynolds's supply chain. Even after few cautionary changes mentioned in the HBR case study - R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cigarette Reynolds's vulnerable to further global disruptions in South East Asia.
Opportunities R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women | 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 R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women are -
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. Cigarette Reynolds's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Cigarette Reynolds's 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.
Building a culture of innovation
– managers at Cigarette Reynolds's 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cigarette Reynolds's is facing challenges because of the dominance of functional experts in the organization. R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women 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.
Using analytics as competitive advantage
– Cigarette Reynolds's 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 R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cigarette Reynolds's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Cigarette Reynolds's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cigarette Reynolds's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Cigarette Reynolds's to increase its market reach. Cigarette Reynolds's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cigarette Reynolds's 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.
Learning at scale
– Online learning technologies has now opened space for Cigarette Reynolds's 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.
Creating value in data economy
– The success of analytics program of Cigarette Reynolds's has opened avenues for new revenue streams for the organization in the industry. This can help Cigarette Reynolds's to build a more holistic ecosystem as suggested in the R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women case study. Cigarette Reynolds's 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 Cigarette Reynolds's in the consumer business. Now Cigarette Reynolds's can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cigarette Reynolds's 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, R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women 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. Cigarette Reynolds's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women, Cigarette Reynolds's 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 .
Technology acceleration in Forth Industrial Revolution
– Cigarette Reynolds's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Cigarette Reynolds's 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 Cigarette Reynolds's.
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. Cigarette Reynolds's 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.
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. Cigarette Reynolds's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cigarette Reynolds's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Cigarette Reynolds's
– 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 Cigarette Reynolds's.
Consumer confidence and its impact on Cigarette Reynolds's 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cigarette Reynolds's 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 R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women .
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 Cigarette Reynolds's business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Cigarette Reynolds's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Cigarette Reynolds's 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. Cigarette Reynolds's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women 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 R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women 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 R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women 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 R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women 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 R. J. Reynolds's Dakota Cigarette (A2): Designed for Young Women 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 Cigarette Reynolds's needs to make to build a sustainable competitive advantage.
