GoodBelly: Using Statistics to Justify the Marketing Expense SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of GoodBelly: Using Statistics to Justify the Marketing Expense
GoodBelly is trying to boost its sales at grocery stores like Whole Foods Market. As a small start-up, GoodBelly must optimize the allocation of its limited marketing budget. It currently promotes through in-person demonstrations in stores, but management is concerned that these demonstrations are not effective enough to justify the cost. It is up to GoodBelly's student intern, Caroline Dickerson, to evaluate its promotional programs using statistical evidence. Dickerson will need to apply regression analysis to a GoodBelly- Excel Spreadsheet (WDI Publishing 1-429-273) to determine whether or not the company should continue its promotional programs.
Swot Analysis of "GoodBelly: Using Statistics to Justify the Marketing Expense" written by Hyun-Soo Ahn includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Goodbelly Dickerson facing as an external strategic factors. Some of the topics covered in GoodBelly: Using Statistics to Justify the Marketing Expense case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the GoodBelly: Using Statistics to Justify the Marketing Expense casestudy better are - – there is backlash against globalization, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models,
increasing energy prices, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of GoodBelly: Using Statistics to Justify the Marketing Expense
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GoodBelly: Using Statistics to Justify the Marketing Expense case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Goodbelly Dickerson, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Goodbelly Dickerson 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 GoodBelly: Using Statistics to Justify the Marketing Expense can be done for the following purposes –
1. Strategic planning using facts provided in GoodBelly: Using Statistics to Justify the Marketing Expense case study
2. Improving business portfolio management of Goodbelly Dickerson
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Goodbelly Dickerson
Strengths GoodBelly: Using Statistics to Justify the Marketing Expense | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Goodbelly Dickerson in GoodBelly: Using Statistics to Justify the Marketing Expense Harvard Business Review case study are -
Sustainable margins compare to other players in Technology & Operations industry
– GoodBelly: Using Statistics to Justify the Marketing Expense firm has clearly differentiated products in the market place. This has enabled Goodbelly Dickerson to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Goodbelly Dickerson to invest into research and development (R&D) and innovation.
Organizational Resilience of Goodbelly Dickerson
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Goodbelly Dickerson does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Goodbelly Dickerson is one of the most innovative firm in sector. Manager in GoodBelly: Using Statistics to Justify the Marketing Expense Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Goodbelly Dickerson digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Goodbelly Dickerson 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.
Strong track record of project management
– Goodbelly Dickerson is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Goodbelly Dickerson has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in GoodBelly: Using Statistics to Justify the Marketing Expense 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.
Operational resilience
– The operational resilience strategy in the GoodBelly: Using Statistics to Justify the Marketing Expense 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)
– Goodbelly Dickerson 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 GoodBelly: Using Statistics to Justify the Marketing Expense - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Goodbelly Dickerson in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Goodbelly Dickerson 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 Goodbelly Dickerson is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GoodBelly: Using Statistics to Justify the Marketing Expense Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Goodbelly Dickerson is one of the leading recruiters in the industry. Managers in the GoodBelly: Using Statistics to Justify the Marketing Expense are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Goodbelly Dickerson 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 Hyun-Soo Ahn 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.
Weaknesses GoodBelly: Using Statistics to Justify the Marketing Expense | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GoodBelly: Using Statistics to Justify the Marketing Expense are -
Skills based hiring
– The stress on hiring functional specialists at Goodbelly Dickerson 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.
Interest costs
– Compare to the competition, Goodbelly Dickerson 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.
Slow decision making process
– As mentioned earlier in the report, Goodbelly Dickerson 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. Goodbelly Dickerson 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.
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 Goodbelly Dickerson supply chain. Even after few cautionary changes mentioned in the HBR case study - GoodBelly: Using Statistics to Justify the Marketing Expense, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Goodbelly Dickerson vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the GoodBelly: Using Statistics to Justify the Marketing Expense 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 Goodbelly Dickerson has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study GoodBelly: Using Statistics to Justify the Marketing Expense 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 Goodbelly Dickerson 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study GoodBelly: Using Statistics to Justify the Marketing Expense, it seems that the employees of Goodbelly Dickerson 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Goodbelly Dickerson needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
No frontier risks strategy
– After analyzing the HBR case study GoodBelly: Using Statistics to Justify the Marketing Expense, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Goodbelly Dickerson is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study GoodBelly: Using Statistics to Justify the Marketing Expense can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Goodbelly Dickerson products
– To increase the profitability and margins on the products, Goodbelly Dickerson needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities GoodBelly: Using Statistics to Justify the Marketing Expense | 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 GoodBelly: Using Statistics to Justify the Marketing Expense are -
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 Goodbelly Dickerson 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.
Using analytics as competitive advantage
– Goodbelly Dickerson 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 GoodBelly: Using Statistics to Justify the Marketing Expense - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Goodbelly Dickerson to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Goodbelly Dickerson can use these opportunities to build new business models that can help the communities that Goodbelly Dickerson operates in. Secondly it can use opportunities from government spending in Technology & Operations 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. Goodbelly Dickerson can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Goodbelly Dickerson can develop new processes and procedures in Technology & Operations 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.
Building a culture of innovation
– managers at Goodbelly Dickerson 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 Technology & Operations segment.
Manufacturing automation
– Goodbelly Dickerson can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Goodbelly Dickerson can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Goodbelly Dickerson 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.
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 Goodbelly Dickerson in the consumer business. Now Goodbelly Dickerson 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, Goodbelly Dickerson 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, GoodBelly: Using Statistics to Justify the Marketing Expense, 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 Goodbelly Dickerson in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Goodbelly Dickerson has opened avenues for new revenue streams for the organization in the industry. This can help Goodbelly Dickerson to build a more holistic ecosystem as suggested in the GoodBelly: Using Statistics to Justify the Marketing Expense case study. Goodbelly Dickerson can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats GoodBelly: Using Statistics to Justify the Marketing Expense External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GoodBelly: Using Statistics to Justify the Marketing Expense are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Goodbelly Dickerson in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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. Goodbelly Dickerson 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Goodbelly Dickerson 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 GoodBelly: Using Statistics to Justify the Marketing Expense .
High dependence on third party suppliers
– Goodbelly Dickerson 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.
Environmental challenges
– Goodbelly Dickerson 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. Goodbelly Dickerson can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Goodbelly Dickerson can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Goodbelly Dickerson 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 Goodbelly Dickerson
– 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 Goodbelly Dickerson.
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 Goodbelly Dickerson.
Regulatory challenges
– Goodbelly Dickerson 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 Technology & Operations industry regulations.
Technology acceleration in Forth Industrial Revolution
– Goodbelly Dickerson has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Goodbelly Dickerson needs to keep up with the evolution of technology in the Technology & Operations 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.
Weighted SWOT Analysis of GoodBelly: Using Statistics to Justify the Marketing Expense 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 GoodBelly: Using Statistics to Justify the Marketing Expense 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 GoodBelly: Using Statistics to Justify the Marketing Expense 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 GoodBelly: Using Statistics to Justify the Marketing Expense 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 GoodBelly: Using Statistics to Justify the Marketing Expense 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 Goodbelly Dickerson needs to make to build a sustainable competitive advantage.